An integrated management programme for the economic appraisal of new medical technology in the absence of reliable failure data

Introduction to new medical technology where it may take years to accumulate reliable failure data is often largely based on subjective grounds rather than a formal quantitative performance model. Using the case of total hip replacements, the paper shows how extensive sensitivity analysis allows the derivation of conditions under which the new technology is more cost effective. Expert medical judgment can then gauge whether these conditions are likely to be satisfied. Both mathematical modelling and scientific data collection are shown to be part of an integrated management programme for the economic evaluation of new medical technology.