Balancing Adoption and Affordability of Medical Devices in Europe

Health Policy, Vol. 92, No. 2-3, pp. 218-224, October 2009

Posted: 27 Mar 2010 Last revised: 19 Sep 2014

See all articles by Jonas Schreyoegg

Jonas Schreyoegg

University of Hamburg - Faculty of Economics and Business Administration

Michael Baeumler

affiliation not provided to SSRN

Reinhard Busse

Technische Universität Berlin (TU Berlin)

Date Written: 2009

Abstract

Dramatic increases in health expenditures have led to a substantial number of regulatory interventions in the markets for devices over the last years. However, little attention has been paid thus far to the regulation of medical devices and its effects. This article explore the policies pursued by European countries to find the right balance between improving access to new medical devices and restricting market forces to contain costs and ensure affordability. We outline the medical device policies of the four European countries with the largest expenditures on devices: Germany, France, Italy, and the UK. Subsequently, we discuss how these policies attempt to balance technological adoption and affordability by illustrating two case studies fromItaly and Germany.We find that reference prices, if defined as maximum reimbursement levels, can help to achieve balance, because they are supposed to contain costs effectively, but do not necessarily act as a hurdle for the adoption of innovations. We also find that policy tools that encourage technological adoption should be used carefully since the benefits of a new technology are often difficult to predict. Finally, we draw a number of policy implications based on our observations.

Keywords: Medical devices, Resource allocation, Financing, Regulation, Europe

Suggested Citation

Schreyoegg, Jonas and Baeumler, Michael and Busse, Reinhard, Balancing Adoption and Affordability of Medical Devices in Europe (2009). Health Policy, Vol. 92, No. 2-3, pp. 218-224, October 2009. Available at SSRN: https://ssrn.com/abstract=1574147

Jonas Schreyoegg (Contact Author)

University of Hamburg - Faculty of Economics and Business Administration ( email )

Von-Melle-Park 5
Hamburg, 20146
Germany

Michael Baeumler

affiliation not provided to SSRN ( email )

Reinhard Busse

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Juni 135
Berlin, 10623
Germany

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