Silver Book Fact

For each $1 spent on newer pharmaceuticals. $6.17 is saved in total health care spending. $4.44 of this savings is in hospital spending alone.

Lichtenberg, Frank R. Benefits and Costs of Newer Drugs: An update. National Bureau of Economic Research Working Paper. 2002; 8996. http://www.nber.org/papers/W8996

Reference

Title
Benefits and Costs of Newer Drugs: An update
Publication
National Bureau of Economic Research Working Paper
Publication Date
2002
Authors
Lichtenberg, Frank R
URL
Read Full Resource

Categories

  • Innovative Medical Research
  • Economic Value

Related Facts

  • Every $1 invested in newer medications saves $7 in other costs.  
  • Appropriate use of diagnostics prevents between $28-$46 million in prescription drug, outpatient and inpatient costs.  
  • For each $1 spent on newer pharmaceuticals. $6.17 is saved in total health care spending. $4.44 of this savings is in hospital spending alone.  
  • Analysis of Medicare data on quality and costs of care for acute myocardial infarction (AMI), hip fracture, and colorectal cancer (with resection) reveals substantial variations in one-year, risk-adjusted mortality rates…  
  • Increased longevity added about $3.2 trillion per year to national wealth between 1970 and 2000, an uncounted value equal to approximately 1/2 of the average annual GDP during that period.