Comments on: Diminishing Returns for Pharmaceuticals http://healthblog.ncpa.org/diminishing-returns-for-pharmaceuticals/ Health Care Policy and Reform Insights | NCPA Tue, 22 May 2012 22:14:23 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Devon Herrick http://healthblog.ncpa.org/diminishing-returns-for-pharmaceuticals/comment-page-1/#comment-49947 Devon Herrick Tue, 01 Dec 2009 21:17:39 +0000 http://www.john-goodman-blog.com/?p=7173#comment-49947 Diminishing returns is why consumers need to have more say (and financial responsibility) in the care they receive. Dropping from 13% to 8% was a relative bargain (aspirin was cheap and streptokinase could dissolve clots). Further innovations lower the rate by four more percentage points. As a society, we could spend infinite amounts of money seeking further reductions in cancer mortality, cardiac mortality, and so on. But we'd be buying additional years of life with increasingly large (marginal) dollars. Whether or not Americans want to spend, say, 80% of lifetime earnings gaining an extra year of life is not something bureaucrats at HHS should have the power to decide. Diminishing returns is why consumers need to have more say (and financial responsibility) in the care they receive. Dropping from 13% to 8% was a relative bargain (aspirin was cheap and streptokinase could dissolve clots). Further innovations lower the rate by four more percentage points. As a society, we could spend infinite amounts of money seeking further reductions in cancer mortality, cardiac mortality, and so on. But we’d be buying additional years of life with increasingly large (marginal) dollars. Whether or not Americans want to spend, say, 80% of lifetime earnings gaining an extra year of life is not something bureaucrats at HHS should have the power to decide.

]]> By: Bruce http://healthblog.ncpa.org/diminishing-returns-for-pharmaceuticals/comment-page-1/#comment-49940 Bruce Tue, 01 Dec 2009 20:53:58 +0000 http://www.john-goodman-blog.com/?p=7173#comment-49940 Joe is right. Joe is right.

]]> By: Joe S. http://healthblog.ncpa.org/diminishing-returns-for-pharmaceuticals/comment-page-1/#comment-49934 Joe S. Tue, 01 Dec 2009 20:42:20 +0000 http://www.john-goodman-blog.com/?p=7173#comment-49934 This same argument has been made about all health care innovation. If everything else remains the same you find yourself moving along a curve with an ever flatter slope -- reflecting the diminishing returns. However, innovation also casues the curve to shift to a higher level, where the diminishing returns start all over again. Wish I could draw this for you. I think you will find the diagram in one of David Cutler's books. This same argument has been made about all health care innovation. If everything else remains the same you find yourself moving along a curve with an ever flatter slope — reflecting the diminishing returns.

However, innovation also casues the curve to shift to a higher level, where the diminishing returns start all over again.

Wish I could draw this for you. I think you will find the diagram in one of David Cutler’s books.

]]> By: Ken http://healthblog.ncpa.org/diminishing-returns-for-pharmaceuticals/comment-page-1/#comment-49927 Ken Tue, 01 Dec 2009 19:54:33 +0000 http://www.john-goodman-blog.com/?p=7173#comment-49927 Surprise: returns diminish. Last time I checked, it's a law. Surprise: returns diminish. Last time I checked, it’s a law.

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