The Intersection of Technology and Health Economics: Innovations and Challenges
Authors: Shah Syed 
Published: October 2024

Purpose This review investigates the intersection of technology and health economics, focusing on the impact of various health technologies on cost-effectiveness, healthcare efficiency, and patient outcomes. The study also examines the challenges related to affordability, equitable access, and sustainability within healthcare systems. Methods A mixed-methods approach was used to evaluate both the cost-effectiveness of technologies and the impact of policies related to health technologies. Specifically, a random-effects model was applied to pool data from multiple studies (2013–2023) on the cost-effectiveness of technologies such as telemedicine, artificial intelligence (AI)-powered diagnostics, advanced imaging, and personalized medicine. Studies were selected based on relevance, research design (e.g., randomized controlled trials and cohort studies), and the availability of quantitative data. Incremental cost-effectiveness ratios (ICERs) were calculated for each technology, and heterogeneity across studies was assessed using the I² statistic. This method allowed for a quantitative synthesis of data, adjusting for variability between studies. Cost–benefit analysis and policy evaluation were conducted to assess the economic impact of technology-related policies such as telemedicine subsidies, AI regulations, and electronic health record (EHR) incentives. This included calculating benefit-cost ratios (BCR), net present value (NPV), and performing scenario planning to explore the best and worst-case outcomes of policy implementation. Main Findings The random-effects model identified telemedicine as the most cost-effective technology, with an ICER of $4,500/QALY and low variability (I² = 25%), demonstrating consistent value across various settings, particularly in underserved areas. AI-powered diagnostics had an ICER of $7,800/QALY with moderate variability (I² = 45%), indicating that its cost-effectiveness depends on the disease treated and healthcare context. Advanced imaging techniques ($15,000/QALY) and personalized medicine ($20,000/QALY) exhibited higher costs and greater heterogeneity (I² = 65% and 70%, respectively), signaling concerns over technology creep and inconsistent economic benefits. The policy analysis found that telemedicine subsidies were the most economically favorable, with a BCR of 1.8 and an NPV of $25 million, though challenges such as broadband infrastructure and provider training were identified. Policies regulating AI had a lower BCR of 1.2, reflecting the challenges of governing rapidly evolving technologies, while EHR incentives demonstrated a BCR of 1.5, with challenges related to data privacy and high upfront costs. Conclusions The findings emphasize the importance of evidence-based policies in guiding the adoption and diffusion of health technologies. There is a critical need for continuous evaluation of cost-effectiveness and the development of policies that address both the economic and ethical challenges posed by technological advancements. Policymakers must focus on ensuring equitable access to these technologies, particularly in underserved areas, to promote a sustainable and efficient healthcare system.