Economic barriers to implementation of innovations in health care: Is the long run–short run efficiency discrepancy a paradox?

Abstract Favourable cost-effectiveness of innovative technologies is more and more a necessary condition for implementation in clinical practice. But proven cost-effectiveness itself does not guarantee successful implementation. The reason for this is a potential discrepancy between long run efficie...

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Bibliographic Details
Published in:Health policy (Amsterdam) 2008-12, Vol.88 (2), p.236-242
Main Authors: Adang, Eddy M.M, Wensing, Michel
Format: Article
Language:English
Subjects:
Algorithms
Cost effectiveness
Cost-Benefit Analysis
Cost-effectiveness analyses
Delivery of Health Care
Diffusion of Innovation
Discrepancies
Efficiency
Efficiency, Organizational - economics
Health administration
Health care
Health economics
Implementation
Innovation
Internal Medicine
Long run efficiency
Medical Laboratory Science - economics
National Health Programs
Netherlands
Returns to scale
Short run efficiency
Short run efficiency Long run efficiency Cost-effectiveness analyses Implementation Returns to scale
Technological innovation
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Summary:Abstract Favourable cost-effectiveness of innovative technologies is more and more a necessary condition for implementation in clinical practice. But proven cost-effectiveness itself does not guarantee successful implementation. The reason for this is a potential discrepancy between long run efficiency, on which cost-effectiveness is based, and short run efficiency. Long run and short run efficiency is dependent upon economies of scale. This paper addresses the potential discrepancy between long run and short run efficiency of innovative technologies in healthcare, explores diseconomies of scale in Dutch hospitals and suggests what strategies might help to overcome hurdles to implement innovations due to that discrepancy.
ISSN:0168-8510
1872-6054
DOI:10.1016/j.healthpol.2008.03.014