BNET Industries

BNET Healthcare

Industry news and insights by Ken Terry

The Medical Arms Race: Da Vinci Surgical Robot Edition

By David P. Hamilton | November 28th, 2008 @ 6:38 pm

One of the reasons healthcare costs keep rising astronomically is the fact that hospitals find it impossible to disengage from the medical arms race that’s gripped the industry. Shiny and expensive new technology exerts a powerful influence on patients and doctors alike, drawing them to medical centers who can tout their state-of-the-art facilities — whether or not those new cath labs or MRI scanners really do much to improve the quality of care.

Hospitals like Beth Israel Deaconess can't quit the medical arms raceAt least, that’s the abstract way of thinking about it. In a rare confession from the upper echelon of the medical-center establishment, Beth Israel Deaconess Medical Center CEO Paul Levy recently wrote at The Health Care Blog about his losing battle to stave off the purchase of a million-dollar Da Vinci surgical robot made by Intuitive Surgical:

Many months ago, I wrote about the da Vinci Robot Surgical System and expressed doubts about whether there was evidence to support the clinical efficacy of this equipment, as opposed to the marketing efficacy of the company selling it. Well, the time has come to graciously say, “Uncle!”

Without making any representations about the relative clinical value of this robotic system versus manual laparoscopic surgery, I am writing to let you know we have decided to buy one for our hospital.

Why? Well, in simple terms, because virtually all the academic medical centers and many community hospitals in the Boston area have bought one. Patients who are otherwise loyal to our hospital and our doctors are transferring their surgical treatments to other places.

Prospective residents who are trying to decide where to have their surgical training look upon our lack of the robot as a deficit in our education program. Prospective physician recruits feel likewise. And, these factors are now spreading beyond urology into the field of gynecological surgery. So as a matter of good business planning, concern for the quality of our training program, and to continue to attract and retain the best possible doctors, the decision was made for us.

And thus another attempt to hold the line against unproven but futuristic-sounding medical technology bites the dust. When even a hospital CEO has to bow to economic reality — divorced though it may be from medical evidence — any hope of reining in skyrocketing medical costs has to look faint indeed, barring a radical restructuring of the healthcare industry.

Image via Flickr user army.mil, CC 2.0

Tags: test, Intuitive Surgical Inc., Hospital, Health Care, Healthcare, Vertical Industries, Benefits, Enterprise Software, Software, Human Resources

A 14-year veteran of the Wall Street Journal, David P. Hamilton is BNET's Industries editor. Prior to coming to BNET, David founded the LifeScience section of VentureBeat, a news site for the innovation and venture business.

Email David P. Hamilton, follow him on Twitter, or just follow all BNET Healthcare posts on Twitter.
 
Reply to Story

BNET TalkbackShare your ideas and expertise on this topic

Subscribe to this discussion via Email or RSS

     
  • 1

    adamsond

    12/01/08 | Report as spam

    RE: The Medical Arms Race: Da Vinci Surgical Robot Edition

    American's are fond of pointing to the Canadian Health Care System as seriously flawed, there is no doubt the system is not perfect however all Canadian's have access to Health Care and by many measures the Canadian System outperforms the US system.
    One of the features of the Canadian system is that there is now an independent Canadian body that assess new technology to determine its effectiveness. This doesn't prevent the adoption of new technology by certain teaching institutions but it is carefully assessed before a broader distribution is achieved.
    Many companies selling drugs and technology now provide studies showing cost-effectiveness to aid adoption of their technology.
    Evidence based medicine is widely used in Canada to help make decisions about the adoption of new technologies.

  •  
  • 2

    richpizzini@...

    12/03/08 | Report as spam

    RE: The Medical Arms Race: Da Vinci Surgical Robot Edition

    I agree that high-tech/high-priced gadgets either for diagnostic imaging or treatment has reached a point of "feature creep". Meaning that the value obtained for the exuberant amount of money needed to obtain the relatively minimal effectiveness in outcome has reached a point of diminishing return.

    Evidenced-based approval of high priced technology definitely seems the prudent way to go.

The following tags are supported in BNET comments:
<b></b> <i></i> <u></u> <pre></pre>

Leave a Reply

  1. You are currently a guest | Login?
advertisement
Go
advertisement
  • Click Here
  • Click Here
advertisement
AboutHealth Care Industry

BNET Healthcare provides daily industry news coverage and insights for managers and executives, focusing on the major health care providers, hospitals and facilities, insurance companies, and medical device manufacturers. In addition to detailed company profiles, we bring you critical analysis on new alliances and partnerships, new products, health care cost control, partnerships and alliances, management and board changes, and a host of other important business issues.