Abstract
During the past two decades, the industrialized world has experienced a expenditure boom in health care, or more accurately, a rising ratio between expenditures on health care and the GNP. There is a number of reasons why this is the case. One of them is the unfettered diffusion of modern medical technologies, which has led to increased access to new technologies and increased cost. Extensive diffusion has also led to duplication of facilities, under-utilization, and waste. One motive behind this development lies in what Fuchs (1968) calls the “the technological imperative”- which states to give always the best care that is technically possible. But at the same time there have been little incentives to create innovations that are cost-reducing. This is partially due to the use of fee-for-service payment to physicians and third-party insurance cover, which create an open-ended demand.
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Dozet, A., Fischer, L. (1998). Incentives for Diffusion of New Health Care Technology. In: Zweifel, P., Lyttkens, C.H., Söderström, L. (eds) Regulation of Health: Case Studies of Sweden and Switzerland. Developments in Health Economics and Public Policy, vol 7. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-4052-6_8
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