National Health Insurance and the Implications for Health-Care Technology

The future role for technology in health-care delivery will be greatly affected by the current debate over national health insurance. A study of the various proposals now in Congress reveals that most bills have in common financial incentives to encourage prepaid comprehensive health-care delivery through group practices called health-maintenance organizations (HMO's). Unlike the typical hospital that operates to maximize the quantity, quality and complexity of care provided, HMO's are designed with incentives to keep people well and keep down the costs of providing care. The likely results of their widespread use will be new incentives to invest in technology designed to increase productivity by lowering the unit cost of care.