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The role of hospital payments in the adoption of new medical technologies: an international survey of current practice

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  • Sorenson, Corinna
  • Drummond, Michael
  • Torbica, Aleksandra
  • Callea, Giuditta
  • Mateus, Ceu

Abstract

This study examined the role of prospective payment systems in the adoption of new medical technologies across different countries. A literature review was conducted to provide background for the study and guide development of a survey instrument. The survey was disseminated to hospital payment systems experts in 15 jurisdictions. Fifty-one surveys were disseminated, with 34 returned. The surveys returned covered 14 of the 15 jurisdictions invited to participate. The majority (71%) of countries update the patient classification system and/or payment tariffs on an annual basis to try to account for new technologies. Use of short-term separate or supplementary payments for new technologies occurs in 79% of countries to ensure adequate funding and facilitate adoption. A minority (43%) of countries use evidence of therapeutic benefit and/or costs to determine or update payment tariffs, although it is somewhat more common in establishing short-term payments. The main barrier to using evidence is uncertain or unavailable clinical evidence. Almost three-fourths of respondents believed diagnosis-related group systems incentivize or deter technology adoption, depending on the particular circumstances. Improvements are needed, such as enhanced strategies for evidence generation and linking evidence of value to payments, national and international collaboration and training to improve existing practice, and flexible timelines for short-term payments. Importantly, additional research is needed to understand how different payment policies impact technology uptake as well as quality of care and costs.

Suggested Citation

  • Sorenson, Corinna & Drummond, Michael & Torbica, Aleksandra & Callea, Giuditta & Mateus, Ceu, 2015. "The role of hospital payments in the adoption of new medical technologies: an international survey of current practice," Health Economics, Policy and Law, Cambridge University Press, vol. 10(2), pages 133-159, April.
  • Handle: RePEc:cup:hecopl:v:10:y:2015:i:02:p:133-159_00
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    Citations

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    Cited by:

    1. Ghandour, Ziad & Siciliani, Luigi & Straume, Odd Rune, 2022. "Investment and quality competition in healthcare markets," Journal of Health Economics, Elsevier, vol. 82(C).
    2. Rachet-Jacquet, Laurie & Toulemon, Léa & Rochaix, Lise, 2021. "Hospital payment schemes and high-priced drugs: Evidence from the French Add-on List," Health Policy, Elsevier, vol. 125(7), pages 923-929.
    3. Patricia Ex & Cornelia Henschke, 2019. "Changing payment instruments and the utilisation of new medical technologies," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 1029-1039, September.
    4. Allers, Sanne & Eijkenaar, Frank & van Raaij, Erik M. & Schut, Frederik T., 2023. "The long and winding road towards payment for healthcare innovation with high societal value but limited commercial value: A comparative case study of devices and health information technologies," Technology in Society, Elsevier, vol. 75(C).
    5. Alessandra Ferrario, 2017. "Determinants of utilisation differences for cancer medicines in Belgium, Scotland and Sweden," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(9), pages 1095-1105, December.
    6. Michael Drummond & Carlo Federici & Vivian Reckers‐Droog & Aleksandra Torbica & Carl Rudolf Blankart & Oriana Ciani & Zoltán Kaló & Sándor Kovács & Werner Brouwer, 2022. "Coverage with evidence development for medical devices in Europe: Can practice meet theory?," Health Economics, John Wiley & Sons, Ltd., vol. 31(S1), pages 179-194, September.
    7. Ferrario, Alessandra, 2017. "Determinants of utilisation differences for cancer medicines in Belgium, Scotland and Sweden," LSE Research Online Documents on Economics 68806, London School of Economics and Political Science, LSE Library.
    8. Aleksandra Torbica & Rosanna Tarricone & Michael Drummond, 2018. "Does the approach to economic evaluation in health care depend on culture, values, and institutional context?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(6), pages 769-774, July.
    9. Laurence C. Baker & Karine Lamiraud, 2022. "Adoption of hospital diagnosis‐related group financing in Switzerland and the availability of computed tomography scanners," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2537-2557, December.

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