With the United States and other developed nations spending as much
as 14 percent of their GDP on medical care, economists and policy
analysts are asking what these countries are getting in return. Yet
it remains frustrating and difficult to measure the productivity of
the medical care service industries.
This volume takes aim at that problem, while taking stock of where
we are in our attempts to solve it. Much of this analysis focuses
on the capacity to measure the value of technological change and
other health care innovations. A key finding suggests that growth
in health care spending has coincided with an increase in products
and services that together reduce mortality rates and promote
additional health gains. Concerns over the apparent increase in
unit prices of medical care may thus understate positive impacts on
consumer welfare. When appropriately adjusted for such quality
improvements, health care prices may actually have fallen.
Provocative and compelling, this volume not only clarifies one of
the more nebulous issues in health care analysis, but in so doing
addresses an area of pressing public policy concern.
General
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