Advancement in technology have been so rampant in the recent times. The health sector and health care in general have experienced the effects associated with this. It is clear though that the inventions of new technologies may either reduce or increase the spending in health care. It is too many expectations that advancement in medical technology should reduce the cost of health care. However of interest to note is that the in the United States the health care spending have risen when advances in medical technology if critically examined (Fasano, 2013).
Invention have led to development of new procedures, new treatments for the terminal diseases, clinical ability to enhance treatment of acute conditions, indications of treatment expansions over time, clinical progress among others. This alone has come with increased health spending.
Several factors play a very critical role in determining whether the technology will increase the expenditure or reduce. The first one is the impact on cost per patient. This is mainly means if the direct costs of the new technology comprise any outcome on the use or cost of extra health care services The second one is, what level of use does the new technology achieves. Can it be in a position to offer or extend the treatment to a population, which is broader? Moreover, the capability of the new technology to extend life expectancy. This in return will mean that the amount and type of health care that people use in their lifetime is greatly affected (Kabene, 2012).
New technologies can minimize utilization e.g. new diagnosis or screening capacity that permits additional targeted treatment. Temporal aspects can also be used to evaluate the effect of new technologies on costs. Some innovations, e.g. new vaccine immediately may cost more, but less in future, if the vaccine leads to less people looking for treatment that is more expensive.
The request for health care is increasing owing to developments in medicine, an elderly population and a growing burden of chronic disease. Furthermore the cost of providing the care is also rising. This has necessitated the Americans hospital to come up with other ways of improving the health care quality at a lower cost (Geweke & Weisbrod, 2011).
Many hospitals are taking action to reduce the cost associated with the rising medical care cost. This is by them increasing their service delivery through the employment f IT. This includes customized cares to patient at homes using specialized treatment machines. Moreover, the extensive implementation of electronic health records has led to substantial savings in health care costs. Moreover, it has also led to the improved patient health and safety.