Which of the following types of technological change in heal

Which of the following types of technological change in healthcare are likely to be cost increasing: (a) threats of malpractice suits that cause physicians to order more diagnostic tests on average for a given set of patient symptoms; (b) a new computer-assisted scanning device that enables physicians to take much more detailed pictures of the brain; (c) the introduction of penicillin earlier in this century (d) greater emphasis on preventive care?

Solution

Option (a).

More number of diagnostic tests will increase the costs for both the patient and for the hospital. Also, this is not a technological change at all.