Innovation in small markets

The introduction of new treatment technologies typically occurs where there is a large market.  A lot of innovations are developed to treat disease that affect a large number of people in the developed world because the financial returns are large.  It is less likely to observe innovation in the treatment of rare diseases or diseases…

Why aren’t there more cures?

The answer is money, reimbursement, and incentives.  Treating chronic disease gives innovators payoff over a long period of time.  If innovators created a cure for that disease, they could of course charge the net present value of this same stream of payments.  Health plans, patients and the media, however, are often shocked at the high sticker…