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KMID : 1170320060120020107
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Korean Journal of Health Economics and Policy
2006 Volume.12 No. 2 p.107 ~ p.123
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Technology and Health Policy -Rapid Technology Diffusion and Policy Options in Korea-
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Kwon Soon-Man
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Abstract
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Medical technology has played an increasingly important role in health care. New high-tech medical devices, brand-name drugs and medical procedures contribute to better health outcomes and improved quality of life. At the same time, however, heavy reliance on high-technology medical care results in the increase in the intensity of care and health
care expenditure. This paper reviews both theoretical issues associated with the diffusion of medical technology in general and the policy issues of Korea along with a few OECD countries. Korea has experienced a very rapid diffusion of high-tech medical care due to the perverse financial incentive of providers associated with the fee-for-service system,
dominance of private for-profit providers of health care, and the lack of regulation on the adoption of medical technology. Since the rapid diffusion of medical technology is driven by providers rather than by consumers, public policy should focus on health care providers such as price regulation, payment system reform, planning and regulation of technology
adoption, economic evaluation, and safety regulation. Effective strategy is also in need to minimize the social costs associated with the implementationof payment system reform and economic evaluation mechanism for medical technology, considering the opposition by vested interest groups.
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KEYWORD
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Technology, Health Policy, Financial Incentive, Regulation, Economic Evaluation
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