Why Not Better and Cheaper?: Healthcare and Innovation

The book "Why Not Better and Cheaper?" argues that the healthcare system generates the wrong kinds of innovation, making it ineffective in delivering increased value at lower cost. It suggests that the system is too easy to profit from low-value innovations and too hard to profit from innovations that reduce the costs of care.

Format: Hardback
Length: 200 pages
Publication date: 16 August 2023
Publisher: Oxford University Press Inc

The evolution of the cell phones we carry in our pockets demonstrates that quality can increase while prices fall. Why doesn't healthcare also get better and cheaper?

In Why Not Better and Cheaper?, James B. Rebitzer and Robert S. Rebitzer offer an answer to this question. Bringing together research on incentives, social norms, and market competition, they argue that the healthcare system generates the wrong kinds of innovation. It is too easy to profit from low-value innovations and too hard to profit from innovations that reduce the costs of care. The result is a healthcare system that is profusely innovative yet remarkably ineffective in discovering ways to deliver increased value at lower cost.

Why Not Better and Cheaper? sheds new light on the trajectory of innovation in healthcare, and how to point innovation in a better direction.

The authors argue that the healthcare system is driven by a desire to profit, which leads to the development of low-value innovations that are easy to profit from. These innovations may improve patient outcomes, but they do not necessarily reduce the overall cost of care. In contrast, high-value innovations that reduce the cost of care are difficult to profit from, as they require significant investment and may not generate immediate returns.

The authors suggest that the healthcare system can be reformed to encourage the development of high-value innovations. One approach is to implement a value-based payment system that rewards providers for delivering high-quality care at a lower cost. This would encourage providers to focus on improving patient outcomes rather than simply increasing revenue.

Another approach is to increase the transparency of the healthcare system, so that patients and providers can better understand the costs and benefits of different treatments. This would enable patients to make informed decisions about their care and encourage providers to offer more cost-effective treatments.

The authors also suggest that the healthcare system can promote innovation by investing in research and development. This would enable researchers to develop new treatments and technologies that are more effective and cost-efficient.

In conclusion, Why Not Better and Cheaper? offers a compelling argument for why the healthcare system needs to be reformed to encourage the development of high-value innovations that reduce the cost of care. By implementing a value-based payment system, increasing transparency, and investing in research and development, the healthcare system can improve patient outcomes and promote economic growth.

Weight: 414g
Dimension: 164 x 242 x 22 (mm)
ISBN-13: 9780197603109