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5. Barriers to Medical Innovation
Pages 34-42

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From page 34...
... Key drivers of innovation were considered to be: a high level of public interest in health care issues; strong public support for increasing NIH research funds; substantial and increasing private investment in medical R&D, although private sector interest waxes and wanes depending on the attractiveness of other investment opportunities; · the aging population a side effect of better health moving the focus to other diseases (e.g. Alzheimer's disease)
From page 35...
... PUBLIC POLICY BARRIERS Reimbursement policies not friendly to innovation. David Lawrence reported on how the IOM Roundtable on Health Care Quality (Chassin et al., 1998)
From page 36...
... Patients in the other group will use Philips Medical Systems' in-home monitoring system to monitor their weight, blood pressure, and pulse, with the information being transmitted electronically to a computer in the doctor's office. Mike Atkins of Beth Israel Deaconess Medical Center and Harvard Medical School reported that Medicare does not fully reimburse the costs of HD IL-2 (high dose Interieukin-2)
From page 37...
... Kaiser Permanente did some very preliminary estimates of what it cost the HMO to deal with local, state, and national regulations in health care, and found that somewhere between 5 and 7.5 percent of the total annual revenue stream is devoted to meeting regulatory requirements. For Kaiser Permanente, that is a regulatory burden of close to a billion dollars each year.
From page 38...
... , the FDA Modernization Act of 1997, Biomaterials reform in 1996, ongoing Medicare coverage and coding reform and conversion of the Agency for Health Care Policy and Research (AHCPR) into the Agency for Healthcare Research and Quality (AHRQ)
From page 39...
... HIGH-LEVEL POLITICAL/ECONOMIC BARRIERS Congressional reactance to address health care issues. Congressional reluctance to address health care issues is understandable given the highly technical nature and complexity of the issues and the fact that legislators and their staffs often lack the knowledge base to fully address the issues.
From page 40...
... Institutional changes had occurred internally in Congress, and entrepreneurial politics had got in the way of developing comprehensive solutions to health care problems. Foote pointed out that this fragmentation is compounded by the piecemeal nature of medical technology policy.
From page 41...
... 1998. The urgent need to improve health care quality.


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