Imaging Equipment Pricing: How Much is That PET Scanner in the Window?
What goes into the pricing of that new high-end imaging equipment recently brought to market?
Returning Radiology Firing Line guest Adam Powell, PhD, a health economist, joins regular moderator Saurabh (Harry) Jha, MD, to discuss the topic of advanced imaging equipment pricing. With #RSNA2017 — the biggest annual radiology trade show for image equipment vendors — only a few weeks away, now is the perfect time for radiologists who have not had previous experience in equipment purchasing decision-making to be introduced to health technology assessment. Listen in:
After Drs. Jha and Powell's discussion, you may wish to learn even more about the following questions the podcast touches upon: What goes into an equipment manufacturer's decision to introduce new imaging equipment to market, especially a new modality like PET-MR? How does the vendor set price points for equipment, especially at a time of on-going (and often escalating) resource allocation constraints, that appeal to potential purchasers but also maximize company profit? Does the price reflect the clinical usefulness of the equipment relative to alternatives, taking into consideration relative potential benefits and harms? What parameters should be looked at when determining modality approval for clinical use and reimbursement, e.g. safety profile, diagnostic accuracy, quality-adjusted life years (QALYs ), outcomes? This latter question is largely answered in the domain of regulators and payors, such as the federal government and insurance companies, since their decisions impact whether advanced imaging equipment will be utilized outside research settings.
Although today's Radiology Firing Line discussion briefly introduces several facets of pricing and health technology assessment, clearly a sub-10 minute podcast cannot sufficiently deal with the complexity of even one of these issues. To enhance your understanding, here are a few JACR articles to serve as recommended reading for an introduction to health technology assessment:
If you already have a basic understanding of health technology assessment or if you became interested in learning more about it after the preceding introductory articles, take a deeper dive with these additional JACR articles, including one focused on economic analysis: