Abstract
This report includes 16 papers which were presented at a 1977 symposium convened by the Sun Valley Forum on National Health to examine the relationship between medical technology and health care costs. The papers cover a variety of topics including statistical evidence of the relationship between health care costs and medical technologies; case studies on the development, introduction, and use of technology; and recommendations regarding relevant public policy issues. The symposium found that medical technology itself is not the culprit behind rising costs in health care: the real problem is the virtual absence in the system of incentives for containing costs. Some suggested incentives include hospital budget caps, limits on federal reimbursement rates per service, and competition from prepaid plans. Budget caps are thought to be useful in the short run, but in the long run, fundamental changes must be made in the existing payment system. The symposium recommended that the federal government assume greater responsibility for gathering, assembling, evaluating, and disseminating data and analyses related to medical technologies and procedures in order to advance the safety and efficacy of both new and current technologies.