: One study considers the comparative ability of digital versus traditional fil

Question

: 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 payer’s perspective and societal perspective, respectively?

Explanation / Answer

1) For something to be cost effective, it should be

i) economical in terms of goods and services received for the money spent on it

ii) Producing good results without costing a lot of money

2) Economic analysis takes into account the opportunity costs of resources employed and attempts to measure inmonetary terms the private and social costs and benefits of a project to the community or economy. As health care resources has become increasingly constrained, the decision to make health care allocation must be reliable, valid and free of bias. As for the case the following approaches are taken into consideration to analyze the economic viability of the technology :

i) Accuracy of digital technology over ther traditional X-ray film

ii) Range of women that the digital technology can be used to detect breast cancer as compared to traditional X-ray film

iii) Health benefits of the digital technology over the X-ray technology with respect to the extra cost involved

3) From payer's perspective cost will be monetary and the accuracy of the test with respect to the cost involved in the test

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