by Scott Gottlieb, Tanisha Carino
American Enterprise Institute
July 11, 2014
Medical research is making significant advances toward treatments to cure major diseases, but these treatments will often entail very high upfront costs. The health care industry needs to consider new models for funding the development and delivery of curative treatments if new medical innovations are going to be consistently produced and adopted. Potential solutions to help provide for the cost of these cures include new credit and contracting arrangements between payers and the health care industry that allow for the cost of treatment to be amortized over many years. Only by changing the prevailing economic constructs will Americans realize the full public health benefit of the curative treatments in development.

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