PBH 358D: Chapter 5: Medical
Technology, vol.3/ Review Questions
And Answers
/.According to the Institute of Medicine, what are the four main components of a fully
developed electronic health records (EHR) system? - Answer-
(1) collection and storage of health information on individual patients over time, where
health information is defined as information pertaining to the health of an individual or
health care provided to an individual;
(2) immediate electronic access to person and population level information by
authorized users;
(3) provision of knowledge and decision-support that enhance the quality, safety, and
efficiency of patient care; and
(4) support of efficient processes for health care delivery.
/.Discuss the relationship between technological innovation and healthcare
expenditures. - Answer-
Technological innovations have been the single most important factor in medical cost
inflation. Technology is expensive to produce. Once it is acquired, its utilization
generates additional costs. The latter may play a more significant role in cost escalation
than the acquisition of technology. Research has demonstrated that many new
technologies increase costs, but many others actually reduce costs. Technology has
reduced the average length of stay in hospitals and has enabled services to be provided
in less costly settings, such as patients' homes. On the aggregate, however, medical
technology has increased healthcare expenditures.
/.Discuss the roles of efficacy, safety, and cost effectiveness in the context of health
technology assessment. - Answer-
Efficacy refers to effectiveness or health benefits a technology provides. Without the
information on efficacy, it is almost impossible to know a technology's usefulness.
Safety considerations are crucial for protecting patients against unnecessary harm from
technology. Cost effectiveness evaluates the benefits in relation to costs. A new
technology may be clinically effective, that is, it may provide some benefit, but it is not
cost effective if the benefit is small and the cost is high.
/.Distinguish between information technology (IT) and health informatics. - Answer-
IT deals with the gathering, storage, analysis, and transformation of data so it
becomes useful information for health care professionals, managers, payers, and
patients. Health informatics uses IT but goes a step beyond by emphasizing the
improvement of health care. Unlike IT, health informatics generally applies to specific
, medical treatments such as cancer treatment, nursing care, imaging and diagnostics,
consumer health, public health, clinical research, pharmacy, etc.
/.Generally speaking, why is medical technology more readily available and used in the
United States than in other countries? - Answer-
The United States leads the world in the development of new technology because of
substantial outlays in research and development (R&D) by both the public and private
sectors. The main reason for R&D spending is fewer supply-side controls over the use
of technology, so there is an incentive to develop new technology. The emphasis on
specialty care rather than primary and preventive care leads to expectations, by both
physicians and patients, that all available technology be used, especially in the case of
patients who are well-insured. Other advanced nations, such as Canada and Germany,
restrict technology diffusion and its utilization through central planning. That has not
been possible in the United States.
/.How does technology-driven competition lead to greater levels of technology diffusion?
How does technological diffusion, in turn, lead to greater competition? How does
technology-driven competition lead to duplication of services? - Answer-
Hospitals, as well as outpatient centers, compete to attract insured patients. Well-
insured patients look for quality, and institutions create perceptions of higher quality by
acquiring and advertising state-of-the-art technology. Specialists have also been
responsible for stimulating competition. Many physicians, for example, have opened
their own specialty hospitals, diagnostic imaging facilities stocked with next-generation
scanners, and same-day surgery centers. In response, hospitals are adding new service
lines—such as cancer, heart, and brain centers—and are acquiring costly CT scanners
and high-field MRI machines, fueling more technology-based competition. To recruit
specialists, medical care centers often have to obtain new technology and offer high-
tech procedures. When hospitals develop new services and invest heavily in
modernization programs, other hospitals in the area are often forced to do the same.
Such practices result in a tremendous amount of duplication of services and equipment.
/.Medical technology encompasses more than just sophisticated equipment. Discuss. –
Answer-
Medical technology encompasses a much broader concept than just sophisticated
equipment and devices. It includes life-saving procedures, such as bone marrow and
organ transplants, as well as curative procedures, such as hip replacements. Modern
facilities found in today's medical centers and care settings, such as home health and
subacute facilities, are the products of technology. New, more effective drugs and
biologics are part of modern technological innovations. Technology also includes the
organizational and support systems, especially computer-supported information
systems that facilitate patient care delivery and management of healthcare delivery.
Application of other modern innovations, such as the Internet, to facilitate access to
medical information and improve communications among providers and between
patients and providers, is also included in medical technology.
Technology, vol.3/ Review Questions
And Answers
/.According to the Institute of Medicine, what are the four main components of a fully
developed electronic health records (EHR) system? - Answer-
(1) collection and storage of health information on individual patients over time, where
health information is defined as information pertaining to the health of an individual or
health care provided to an individual;
(2) immediate electronic access to person and population level information by
authorized users;
(3) provision of knowledge and decision-support that enhance the quality, safety, and
efficiency of patient care; and
(4) support of efficient processes for health care delivery.
/.Discuss the relationship between technological innovation and healthcare
expenditures. - Answer-
Technological innovations have been the single most important factor in medical cost
inflation. Technology is expensive to produce. Once it is acquired, its utilization
generates additional costs. The latter may play a more significant role in cost escalation
than the acquisition of technology. Research has demonstrated that many new
technologies increase costs, but many others actually reduce costs. Technology has
reduced the average length of stay in hospitals and has enabled services to be provided
in less costly settings, such as patients' homes. On the aggregate, however, medical
technology has increased healthcare expenditures.
/.Discuss the roles of efficacy, safety, and cost effectiveness in the context of health
technology assessment. - Answer-
Efficacy refers to effectiveness or health benefits a technology provides. Without the
information on efficacy, it is almost impossible to know a technology's usefulness.
Safety considerations are crucial for protecting patients against unnecessary harm from
technology. Cost effectiveness evaluates the benefits in relation to costs. A new
technology may be clinically effective, that is, it may provide some benefit, but it is not
cost effective if the benefit is small and the cost is high.
/.Distinguish between information technology (IT) and health informatics. - Answer-
IT deals with the gathering, storage, analysis, and transformation of data so it
becomes useful information for health care professionals, managers, payers, and
patients. Health informatics uses IT but goes a step beyond by emphasizing the
improvement of health care. Unlike IT, health informatics generally applies to specific
, medical treatments such as cancer treatment, nursing care, imaging and diagnostics,
consumer health, public health, clinical research, pharmacy, etc.
/.Generally speaking, why is medical technology more readily available and used in the
United States than in other countries? - Answer-
The United States leads the world in the development of new technology because of
substantial outlays in research and development (R&D) by both the public and private
sectors. The main reason for R&D spending is fewer supply-side controls over the use
of technology, so there is an incentive to develop new technology. The emphasis on
specialty care rather than primary and preventive care leads to expectations, by both
physicians and patients, that all available technology be used, especially in the case of
patients who are well-insured. Other advanced nations, such as Canada and Germany,
restrict technology diffusion and its utilization through central planning. That has not
been possible in the United States.
/.How does technology-driven competition lead to greater levels of technology diffusion?
How does technological diffusion, in turn, lead to greater competition? How does
technology-driven competition lead to duplication of services? - Answer-
Hospitals, as well as outpatient centers, compete to attract insured patients. Well-
insured patients look for quality, and institutions create perceptions of higher quality by
acquiring and advertising state-of-the-art technology. Specialists have also been
responsible for stimulating competition. Many physicians, for example, have opened
their own specialty hospitals, diagnostic imaging facilities stocked with next-generation
scanners, and same-day surgery centers. In response, hospitals are adding new service
lines—such as cancer, heart, and brain centers—and are acquiring costly CT scanners
and high-field MRI machines, fueling more technology-based competition. To recruit
specialists, medical care centers often have to obtain new technology and offer high-
tech procedures. When hospitals develop new services and invest heavily in
modernization programs, other hospitals in the area are often forced to do the same.
Such practices result in a tremendous amount of duplication of services and equipment.
/.Medical technology encompasses more than just sophisticated equipment. Discuss. –
Answer-
Medical technology encompasses a much broader concept than just sophisticated
equipment and devices. It includes life-saving procedures, such as bone marrow and
organ transplants, as well as curative procedures, such as hip replacements. Modern
facilities found in today's medical centers and care settings, such as home health and
subacute facilities, are the products of technology. New, more effective drugs and
biologics are part of modern technological innovations. Technology also includes the
organizational and support systems, especially computer-supported information
systems that facilitate patient care delivery and management of healthcare delivery.
Application of other modern innovations, such as the Internet, to facilitate access to
medical information and improve communications among providers and between
patients and providers, is also included in medical technology.
