New technology is a major determinant of total healthcare costs. The a
ssessment of alternative technologies from a cost-effectiveness perspe
ctive is important, although other considerations may finally determin
e which technology is used. The alternatives of extracorporeal shock w
ave lithotripsy (ESWL) and percutaneous nephrostolithotomy (PCNL) for
the treatment of renal stone disease were compared by studying 1000 ca
ses of ESWL and 133 cases of PCNL using a noncontemporaneous cohort st
udy with PCNL representing the earlier cohort. The effectiveness, defi
ned by success and stone-free rates, was higher with PCNL than with ES
WL (96% success vs. 70%); PCNL was also accompanied by a lower burden
of additional therapy, whereas ESWL had a higher retreatment rate. Fro
m the perspective of a third-party payer, total costs per case of ESWL
($2,746) were lower than those of PCNL ($4,087), but the figure varie
s with the annual volume. These represent the costs for complete treat
ment of a patient, including the costs of alternative technology such
as PCNL or ureteroscopy that may ultimately be necessary in a patient
initially managed by ESWL. The cost for a single ESWL treatment was $2
,226 (at a volume of 1000 cases per year), but this increased to $2,74
6 when costs of retreatment and alternative treatment were prorated to
each patient treated. The relative contribution of capital costs to t
he total cost of ESWL was always less than total professional fees and
was only 12% at a volume of 2000 cases/year. Therefore ESWL is less e
xpensive but it is also less effective in rendering patients stone-fre
e.