Information as Change Agent or Barrier in Health Care Reform?

Drivers Of Innovation In The Health Care Sector

In 2008 and 2009, the national economy of many countries has shrunk. The last time the world economy experienced a recession, in the early nineties, it led to a major panic about the cost of public services, and in particular health care, where a sharp rise in the perceived cost of health care services led to many explanations such as increasingly elderly populations, increased cost of drugs and medical technology. These explanations have not been wholly supported by more reflective analyses, as described in Gillies (2003).

Drug Costs are offset by reduced hospital admissions, where new treatments allow treatment in the community, and keep patients out of hospital e.g. increased use of sophisticated and more expensive asthma treatments is offset by reduced numbers of emergency admissions, and in non-financial terms by prevention of distressing patient episodes. Although a more elderly population does require more care, the largest medical costs remain the months prior to death, irrespective of age.

A key concern for many governments is the cost of health care. Indicators published by OECD (2009) measure the affordability of health care, so measure costs relative to GDP, rather than absolute costs. Affordability reduces in a recession, leading to a higher figure (Table 1).