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AdvaMed Commends New Report on Current, Future Economic Benefit of Medical Technology
MedTech Boosted U.S. Economy by $24 Billion in 2010
WASHINGTON, D.C. – Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed), issued the following statement today on the release of a study from the Milken Institute, “Healthy Savings: Medical Technology and the Economic Burden of Disease”
“The new Milken Institute report released today is an important assessment on how improved patient access to innovative medical technology can provide tremendous value to the U.S. economy, both now and in the future.
“According to the report, U.S. GDP expanded by $106.2 billion in 2010 and the economy experienced a net annual benefit of $23.6 billion from the use of key medical technologies to address four serious health conditions – diabetes, heart disease, musculoskeletal disease and colorectal cancer.”
“By analyzing the costs of these interventions compared to offsetting savings from improved health care outcomes and increased labor force participation and productivity, the Milken Institute report concludes medical technology provides ‘substantial economic benefits’ in terms of increased health system savings, GDP, increased tax revenue and net annual benefit.” For example:
- Diabetes: Use of insulin pumps generated annual savings of $5,886 per person and $34.9 million in increased tax revenue;
- Heart disease: $1,930 in annual savings was achieved per person who underwent related diagnostic tests and/or angioplasty versus those who did not, generating an additional $1.5 billion in tax revenue;
- Musculoskeletal disease: Persons who underwent MRI and joint replacement surgery generated $24,518 in savings individually and $3.8 billion in increased tax revenue;
- Colorectal cancer: $97,302 in annual savings was achieved per person who underwent colonoscopy/sigmoidoscopy, leading to $1.8 billion in increased tax revenue.
Ubl Continued: “The numbers speak for themselves. To those who claim we can’t afford the innovations our industry produces, my response is – for the sake of patients and the economy both now and in the future – we can’t afford not to have them.
“The report also demonstrates that, with the proper incentives, the U.S. can continue to reap economic benefits from medical technology for decades to come. Over the next 25 years, policies favoring medical innovation are projected to result in U.S. economic gains of $1.4 trillion from future generations of technologies for the four diseases studied.
“On the other hand, the report warns that policies discouraging innovation could cost the economy $3.4 trillion over the same period. If we want a future that realizes the promise of medical technology, we need to work now to ensure that appropriate public policies are in place that provide incentives to promote innovation.”
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AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments.