Impacts of Advances in Medical Technology in Australia

the Productivity Commission research report into the ‘Impacts of Advances in Medical Technology in Australia’ was released on 20 September 2005. The report responds to a request from the Australian Government to examine the impact of advances in medical technology on public and private healthcare expenditure, and the associated costs and benefits for the Australian community. Advances in medical technology have brought large benefits to the Australian community, but at the same time have been major drivers of the recent increase in healthcare spending. These trends are set to continue, with future technological advances likely to support further dramatic improvements in healthcare, but also to raise expenditure significantly. While it is likely that the benefits of advances in medical technology have outweighed the additional costs, the Commission found that the cost effectiveness of individual technologies varies widely and for some is not known. The report also highlights a number of procedural and coverage gaps in Australia’s health technology assessment processes. The report concludes that there is a need for better information about the costs and benefits of technology, but that broader structural, incentive and resourcing issues in the health system also need to be addressed.