MEDICAL INNOVATION DUELS COST-CONTAINMENT

The nation's commitment to health cost control will potentially confli ct with its deeper commitment to innovation in medical technology-drug s, medical devices, diagnostic and therapeutic procedures, and adminis trative infrastructure. Medical technology is implicated in increasing health care costs because, on a net basis, it increases the capabilit ies of medicine. Conceptual, methodological, institutional, and politi cal factors limit the ability to address the potential conflict; these limits must be confronted and addressed if we are to formulate sound policy responses.