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February 29, 2008

Can Technology Slow the Growth in Health Care Costs

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Frederic Goldstein, President and Chief Operating OfficerFrederic Goldstein
President and Chief Operating Officer, U.S. Preventive Medicine, Inc.
Implications: Technology is proposed as a means to control health care costs through making the system more efficient.  While a more efficient system will certainly be helpful, our current population needs a change in behavior in a societal way if we truly hope to bend the trend.

Analysis:  Technology and the latest and greatest system, imaging unit, test, or EMR has always been touted as a way to control health care costs. In the majority of cases these technologies have not necessarily reduced costs and we continue to see ever growing health care expenditures.

The key to containing and bending the trend is to change our population and health care system and move to a preventive model.  A recent study by the Milken Institute showed that we could save over $1 trillion dollars per year if we focused on prevention and chronic care management for seven conditions.

While technology can improve out systems and care, the real solution is to reduce the number of people coming down with obesity and other preventable chronic diseases, where 80% of our health care expenditures occur.

Other Analyses of the Same Source Article:
Implementing Cost Controls Over Runaway Health Benefit Expenses
April 10, 2008, Author: GLG Expert Contributor
insurance companies can help
March 12, 2008, Author: GLG Expert Contributor
Technology is all too often the CAUSE of increased health care spending
March 3, 2008, Author: GLG Expert Contributor

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