title: Endogenous Technology Adoption and Medical Costs.
abstract: Despite the claim that technology has been one of the most important drivers of healthcare spending growth over the past decades, technology variables are rarely introduced explicitly in cost equations. Furthermore, technology is often considered exogenous. Using 1996-2007 panel data on Swiss geographical areas, we assessed the impact of technology availability on per capita healthcare spending covered by basic health insurance whilst controlling for the endogeneity of health technology availability variables. Our results suggest that medical research, patent intensity and the density of employees working in the medical device industry are influential factors for the adoption of technology and can be used as instruments for technology availability variables in the cost equation. These results are similar to previous findings: CT and PET scanner adoption is associated with increased healthcare spending, whilst increased availability of percutaneous transluminal coronary angioplasty facilities is associated with reductions in per capita spending. However, our results suggest that the magnitude of these relationships is much greater in absolute value than that suggested by previous studies that did not control for the possible endogeneity of the availability of technologies. Copyright © 2016 John Wiley & Sons, Ltd.
authors: Department of Economics, ESSEC Business School, Avenue Bernard Hirsch, B.P. 50105, 95021, Cergy, France.|THEMA-University of Cergy Pontoise, 33, Boulevard du Port, 95011, Cergy-Pontoise Cedex, France.
authors: Karine
authors: K
authors: Lamiraud
authors: ICN Business School, 13 Rue Michel Ney, 54000, Nancy, France.|BETA (UMR 7522), Universite de Lorraine, 13 place Carnot C.O. 70026, 54035, Nancy cedex, France.
authors: Stephane
authors: S
authors: Lhuillery
mesh_terms: D015906:Angioplasty, Balloon, Coronary / Q000295:instrumentation / Q000379:methods; D020811:Biomedical Technology / Q000191:economics* / Q000295:instrumentation*; D004864:Equipment and Supplies / Q000191:economics*; D005102:Health Expenditures / Q000706:statistics & numerical data*; D006801:Humans; D049268:Positron-Emission Tomography / Q000295:instrumentation / Q000379:methods; D011795:Surveys and Questionnaires; D013557:Switzerland; D014055:Tomography, Emission-Computed / Q000295:instrumentation / Q000379:methods
keywords: CT; PET; PTCA; healthcare expenditure; medical research; patent; technology change