6 Innovations Changing the World of Medicine
- Babies born with half a heart can grow a whole one.
- You can now map your genes for $1,000.
- A new test can test a tumor sample for 280 different genetic mutations suspected of driving tumor growth.
- Cancer tumors turn off the immune system; now drugs can turn it back on.
- iPhone app lets doctors take an electrocardiogram just about anywhere.
- Gene therapy has the potential to cure lethal diseases by enabling normal genes to take over for defective ones.
Entire article on medical innovations in the WSJ.
This is innovation right here and improving technology drives the economy.
“Since the first sequencing of the human genome was completed in 2003 at a price tag of over $2 billion, the speed, price and accuracy of the technology have all improved. Illumina Inc. has dropped its price for individual readouts to $5,000; earlier this year, Life Technologies introduced a sequencer it says can map the human genome for $1,000. The smallest machine is now desktop-size.”
We economists have long known that advancements in technology would prove the vehicle for long-term, sustainable growth in the economy.
This news is most welcome.
In most areas of our economy, technological advancement drives down costs over time. The computer is the example we often hear about. But the television is equally good. Consider what you can get now compared to 40 years ago. In inflation-adjusted dollars, a standard definition, 25 inch color TV from 1973 probably cost the equivalent of more than $2000 today. However, the actual price of a 26″ high-definition TV today is closer to $200. There are other examples, including automobiles. In many cases actual prices haven’t fallen — but quality and amenities have risen tremendously.
But health care is different. Technology doesn’t lower price; prices are rising twice as fast as the inflation rate. The reason is partly higher quality (i.e. new discoveries), but mostly because of third-party payment. Providers don’t compete on price because patients aren’t paying the cost. To make health care act more like televisions and computers (and telephone service), price competition must take hold. This will never happen as long as consumers are insulated from the cost of care.
2.You can now map your genes for $1,000.
Interesting. Certainly something that people will be looking at.
I wonder if panels would sign off on innovative procedures.