Economics and technology

Economic policy issues arise at two levels with medical technology in the UK. At the macroeconomic level is a desire to encourage technological advance in the medical equipment industry to increase output, employment and exports. At the microeconomics level there is pressure to increase cost-effectiveness of healthcare and contain the growth of costs. These objectives can be conflicting, particularly as it is often difficult to measure the effectiveness of healthcare, and there is sometimes confusion over the true cost of different forms of care. This had led to the growth of health technology assessment (HTA) as a decision-making aid. Although HTA draws from a multidisciplinary perspective, the core of the process is microeconomic evaluation. For HTA to be done well it is essential that those carrying out the assessment have a proper understanding of technology in medicine and that those providing the information for the assessment understand the methodology of HTA. Without this mutual understanding there is a danger that the potential benefits of technological advance may be lost in the inappropriate pursuit of financial savings