Adoption and Diffusion of New Cancer Therapies: Implications for Costs and Policy
This session will focus on adoption and diffusion of new cancer therapies and their implications for national health care costs and policy. New drugs and technology are cited as primary drivers of health care costs. Yet, the marginal benefit, in terms of survival and symptom relief, of these costly services to patients is uncertain. There is a long-standing debate regarding drivers of new technology diffusion: economic incentives, social networks and interactions among decision-makers, or a combination of both. In addition, physicians might adopt a new technology because they perceive that it lowers costs and increases benefits such as improved health for patients, increased utility or social reputation through peer recognition as an innovator, or increased clinical efficiency. In addition, environmental factors such as competition and patient demand can influence adoption and diffusion of new technology. Larger firms (e.g., hospitals or large physician group practices) may be more likely to innovate because they can both reap the benefits of the new technology through economies of scale and have access to funds to pay for new equipment. Under certain circumstances, for example, in the presence of large financial incentives, a disease or condition where few treatment options exist, or where evidence-based guidelines are unavailable, medical innovations may be more likely to be adopted and diffused. This widespread and rapid adoption not only leads to escalating healthcare costs but may provide very little benefit or may inflict harm. The three papers in this session will address diffusion and consequences of new cancer therapies.