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

  • From 1970-2000, increased longevity added approximately $3.2 trillion per year to national wealth, the equivalent of half of the average annual gross domestic product over the period. Half of these…  
  • For every $1 spent on newer instead of older medicines, total health care spending is reduced by $6.17.  
  • 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…  
  • 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.  
  • Avoidable Treatment Expenditures, 2023