Silver Book Fact

Spending $11,000 on general medical care adds an average of 1 year of life. Spending only $1,345 on pharmaceutical research and development yields the same return.

Lichtenberg, Frank R. Do (More and Better) Drugs Keep People Out of Hospitals?. American Economic Review. 1996; 86(2): 384-8

Reference

Title
Do (More and Better) Drugs Keep People Out of Hospitals?
Publication
American Economic Review
Publication Date
1996
Authors
Lichtenberg, Frank R
Volume & Issue
Volume 86, Issue 2
Pages
384-8

Categories

  • Innovative Medical Research
  • Economic Value

Related Facts

  • For every $1 spent on newer instead of older medicines, total health care spending is reduced by $6.17.  
  • Increased Use of Medicines Reduces Overall Health Care Costs: Mental health/substance abuse (MH/SA) spending per patient fell as drug spending increased, 1992-1999  
  • Using newer drugs could lower overall health expenses by as much as $111 per person, per condition, for the general population, and $155 for Medicare beneficiaries.  
  • Greater Adherence to Medicines Decreases Total Health Care Spending  
  • National health spending growth is projected to slow from 6.9% in 2005 to 6.8% in 2006, which marks the 4th consecutive year of a slowing trend.