Innovation Reduces Costs
Aside from saving and improving lives, innovation has also proven to save money.
- For every $1 spent on newer medicines in place of older ones, total healthcare spending is reduced by $6.17.1*
Learn more about the importance of preserving an environment that rewards and encourages continued innovation.
* 5.5 years from FDA approval vs. 15 years.
** Health gains defined as an additional life year gained or additional quality-adjusted life year.
References:
- Shaw B. Take your medicine! The PBS, productivity and future prosperity. Sustaining Prosperity Conference, Melbourne. April 1, 2005.
- Hill JW, Futterman R, Mastey V, Fillit H. The effect of donepezil therapy on health costs in a managed care plan. Managed Care Interface. 2002 Mar;15(3):63-70.
- Medtap International. The Value of Investment in Healthcare: Better Care, Better Lives. American Hospital Association Web site. Available at http://www.aha.org/aha/content/2004/pdf/Value_Report.pdf. Accessed October 6, 2010.