: One study considers the comparative ability of digital versus traditional film X-ray technology in detecting breast cancer. The study involved more than 40,000 women and finds digital mammograms more precise than traditional film X-rays in detecting breast cancer in women under 50 years, women with denser breasts, and women who are near menopause. Both digital and film based mammograms take pictures in the same way, but the digital technology records the images faster and uses less radiation. The new technology appears more sensitive to breast cancer in specific groups, but the study does not resolve whether it is cost-effective to use digital mammography. In addition, the digital mammogram machines cost nearly five times as much as traditional X-ray machines, and insurers may not pay more for the more expensive digital exams.
Questions:
(1) This technology appears to have advantages over the prevailing (non-digital) approaches. But as the article suggests, it is not clear whether the new technology is cost-effective. What does it mean for something to be considered cost-effective? Does it mean that the benefits exceed the cost?
(2) What economic analysis would you use to compare these two technologies? Describe the outcome you would use in the analysis.
(3) What cost would you consider from payerâs perspective and societal perspective, respectively?
: One study considers the comparative ability of digital versus traditional film X-ray technology in detecting breast cancer. The study involved more than 40,000 women and finds digital mammograms more precise than traditional film X-rays in detecting breast cancer in women under 50 years, women with denser breasts, and women who are near menopause. Both digital and film based mammograms take pictures in the same way, but the digital technology records the images faster and uses less radiation. The new technology appears more sensitive to breast cancer in specific groups, but the study does not resolve whether it is cost-effective to use digital mammography. In addition, the digital mammogram machines cost nearly five times as much as traditional X-ray machines, and insurers may not pay more for the more expensive digital exams.
Questions:
(1) This technology appears to have advantages over the prevailing (non-digital) approaches. But as the article suggests, it is not clear whether the new technology is cost-effective. What does it mean for something to be considered cost-effective? Does it mean that the benefits exceed the cost?
(2) What economic analysis would you use to compare these two technologies? Describe the outcome you would use in the analysis.
(3) What cost would you consider from payerâs perspective and societal perspective, respectively?
