Medical Technology as a Driver of Healthcare Costs: Diagnostic Imaging


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Barbara M. Rothenberg, PhD, Blue Cross and Blue Shield Association, October 14, 2003.

Focus: To document the costs of diagnostic imaging and challenges in reducing overuse of diagnostic imaging while maintaining access when clinically indicated.

Study Design: Analysis of available literature and data from the American College of Radiology, Booz Allen Hamilton, and a large, national group health plan.

Results:

  • The higher availability of diagnostic imaging equipment and facilities that perform cardiac procedures is associated with greater use of these technologies and higher costs. The results were weaker for the cost impact of the availability of sophisticated cancer care and neonatal intensive care units.
  • MRI and CT act as complements, that is, greater MRI availability is associated with higher CT use and vice versa. In contrast, an increase in the availability of coronary artery bypass graft surgery is associated with less angioplasty use and spending.
  • Areas with greater availability of diagnostic imaging and cardiac facilities appear to have lower prices for commercially insured patients (where prices are negotiated) but higher prices for Medicare patients (where prices are set by government regulation).


Full Study:
Medical Technology As a Driver of Healthcare Costs: Diagnostic Imaging (PDF format, 1.3MB)

 



 

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