Silver Book Fact

Fact image

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

PhRMA. The Value of Medicines: Facts and figures 2006; 2006. http://innovation.org/documents/Value%20of%20Medicine%20FINAL%200712061.pdf

Reference

Title
The Value of Medicines: Facts and figures 2006
Publication Date
2006
Authors
PhRMA
URL
Read Full Resource

Categories

  • Innovative Medical Research
  • Economic Value

Related Facts

  • 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.  
  • If the major risk factors for chronic disease were eliminated, at least 80% of heart disease, stroke and type 2 diabetes would be prevented; and 40% of cancer would be…  
  • Appropriate use of diagnostics prevents between $28-$46 million in prescription drug, outpatient and inpatient costs.  
  • 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…  
  • Every $1 invested in newer medications saves $7 in other costs.