Why Does the US Overinvest in Technology? The Curious Case of MRI Scanners
Zack Cooper, Yale University
While new technological advances can lead to improvements in health care, rapid unchecked adoption of these technologies is also a leading driver of growth in U.S. health care spending. This study will use a mix of public- and private-sector health care claims to estimate a structural model of MRI market entry, pricing and market share. Model parameters will be used to simulate the impacts of possible policies to constrain overinvestment, and findings will be generalized beyond the MRI setting to consider adoption of other types of health care technology.