TECHNOLOGY ASSESSMENT IN MEDICINE: AN AUSTRALIAN PROPOSAL

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Abstract
A large part of the increasing cost of health care services is often attributed to the introduction of new technology. While a review of the literature reveals that the evidence to support this view is ambiguous, it does indicate that the unregulated market fails to discriminate well between effective and ineffective health care technology. In some cases it has permitted the proliferation of medically harmful technology. At present Australia does not have a regulatory mechanism for ensuring the efficient use of new technology. The present paper suggests how such a mechanism could be established and the incentives that would be necessary to encourage the proliferation of only effective and efficient medical technology.

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