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

  • Avoidable Treatment Costs and Output Losses, 2023  
  • Every $1 invested in newer medications saves $7 in other costs.  
  • “In 1985, the age adjusted nursing home residence rate was 54 people per 1,000 age 65 and over. By 2004 this rate had declined to 35 people per 1,000. Among…  
  • Benefit of Increased Health Care Spending: Disability rates declining for seniors, 1982-1999  
  • 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.