Do (More and Better) Drugs Keep People Out of Hospitals?
Case studies of a number of specific drugs have shown that these drugs reduced the demand for hospital care and, in some cases, led to decreases in mortality. For example, according to the Boston Consulting Group Inc., operations for peptic ulcers decreased from 97,000 in 1977, when H2 antagonists were introduced, to 19,000 in 1987; this is estimated to have saved $224 million in annual medical costs. The recent Scandinavian Simvastatin Survival Study indicated that giving the drug simvastatin to heart patients reduced their hospital admissions by a third during five years of treatment.