MEDICAL TECHNOLOGY AND HEALTH-CARE EXPENDITURES - THE DUTCH EXPERIENCE IN THE PERIOD 1970-1990

Technological change in medicine and health care has an important impa ct which goes far beyond its consequences for physicians and patients. Since the Second World War, developments in medicine have changed ent ire societies, not least from an economic point of view. This paper an alyses the impact of technological change on health-care expenditures in The Netherlands in the period 1970-1990. The various channels of in fluence are briefly described and condensed to an algebraic, residual model. The analysis indicates that a total increase in health-care exp enditures (HCE) amounting to 460% was largely caused by inflation (inc rease in HCE of 160%) and technological change (increase in HCE of 83% ). The impact of ageing (increase in HCE of 12%) proved to be very sma ll.