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Much Cheaper, Almost as Good: Decrementally Cost-Effective Medical Innovation
Annals of Internal Medicine, 11/04/09

Nelson AL et al. – Less–expensive, lower–quality innovations are ubiquitous in other economic sectors but have not been described in health care. Despite yielding lower health benefits than an alternative, decrementally cost–effective innovations would yield sufficient cost savings to make them attractive. In theory, decrementally cost–effective innovations offer an opportunity to improve the efficiency of health resource allocation, because the resources saved can be applied to higher–value medical interventions. Systematic review of the cost–effectiveness literature published in English from 2002 to 2007 revealed that only 0.4% of cost–utility analyses described innovations that might be considered decrementally cost–effective. Decrementally cost–effective innovations are rarely described yet potentially useful instruments for maximizing health benefits while minimizing costs.

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