Will the increase of medical equipment affect medical expenditure? Empirical evidence from a quasi-experiment in China

Abstract Background Many studies have shown that using new technologies and medical equipment contributes to increasing health expenditure. Relatively less empirical studies have measured the impact of medical equipment on rising medical costs in China. Against this backdrop, we aim to examine wheth...

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Main Authors: Qiwei Deng, Zhongliang Zhou, Chi Shen, Dan Cao, Dantong Zhao, Yaxin Zhao, Jianmin Gao
Format: Article
Language:English
Published: BMC 2025-01-01
Series:BMC Health Services Research
Subjects:
Online Access:https://doi.org/10.1186/s12913-025-12209-7
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author Qiwei Deng
Zhongliang Zhou
Chi Shen
Dan Cao
Dantong Zhao
Yaxin Zhao
Jianmin Gao
author_facet Qiwei Deng
Zhongliang Zhou
Chi Shen
Dan Cao
Dantong Zhao
Yaxin Zhao
Jianmin Gao
author_sort Qiwei Deng
collection DOAJ
description Abstract Background Many studies have shown that using new technologies and medical equipment contributes to increasing health expenditure. Relatively less empirical studies have measured the impact of medical equipment on rising medical costs in China. Against this backdrop, we aim to examine whether the large-scale medical equipment deployment explains the increase in health expenditure. Methods Quasi-experimental research design with a difference-in-differences approach was adopted to explore whether an increase in the number of large-scale medical equipment impacts on outpatient and inpatient costs. Data were obtained from the 2011–2017 Health Financial Annals in Shaanxi province, China. Results The increase in the number of large-scale medical equipment by 1 — regardless of the initial configuration — resulted in the increase of the average cost per outpatient visit and the average cost per inpatient visit by 10.6% (p < 0.05) and 8.0% (p < 0.05), respectively. Our complex difference in differences model illustrates that the increase in the number of large-scale medical equipment by 1 — regardless of the initial configuration—results in an increase in the average diagnostic cost per outpatient visit and the average diagnostic cost per inpatient visit by 27. 3% (p < 0.01) and 25. 5% (p < 0.01), respectively. Conclusions Our findings show that the medical expenditure differs significantly with the increase in the number of large-scale medical equipment. This study mainly revealed the relationship between the growth of the number of large-scale medical equipment and medical expenditure. Our novel perspective was used to measure the phenomenon of excessive use, and to explain the social phenomenon of inaccessible and expensive medical care in China.
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spelling doaj-art-0b2b50f1ee8441059b4b72bc8ccea5b92025-01-19T12:15:20ZengBMCBMC Health Services Research1472-69632025-01-0125111110.1186/s12913-025-12209-7Will the increase of medical equipment affect medical expenditure? Empirical evidence from a quasi-experiment in ChinaQiwei Deng0Zhongliang Zhou1Chi Shen2Dan Cao3Dantong Zhao4Yaxin Zhao5Jianmin Gao6School of Public Health, Health Science Center, Xi’an Jiaotong UniversitySchool of Public Policy and Administration, Xi’an Jiaotong UniversitySchool of Public Policy and Administration, Xi’an Jiaotong UniversitySchool of Public Policy and Administration, Xi’an Jiaotong UniversitySchool of Public Policy and Administration, Xi’an Jiaotong UniversitySchool of Public Health, Health Science Center, Xi’an Jiaotong UniversitySchool of Public Policy and Administration, Xi’an Jiaotong UniversityAbstract Background Many studies have shown that using new technologies and medical equipment contributes to increasing health expenditure. Relatively less empirical studies have measured the impact of medical equipment on rising medical costs in China. Against this backdrop, we aim to examine whether the large-scale medical equipment deployment explains the increase in health expenditure. Methods Quasi-experimental research design with a difference-in-differences approach was adopted to explore whether an increase in the number of large-scale medical equipment impacts on outpatient and inpatient costs. Data were obtained from the 2011–2017 Health Financial Annals in Shaanxi province, China. Results The increase in the number of large-scale medical equipment by 1 — regardless of the initial configuration — resulted in the increase of the average cost per outpatient visit and the average cost per inpatient visit by 10.6% (p < 0.05) and 8.0% (p < 0.05), respectively. Our complex difference in differences model illustrates that the increase in the number of large-scale medical equipment by 1 — regardless of the initial configuration—results in an increase in the average diagnostic cost per outpatient visit and the average diagnostic cost per inpatient visit by 27. 3% (p < 0.01) and 25. 5% (p < 0.01), respectively. Conclusions Our findings show that the medical expenditure differs significantly with the increase in the number of large-scale medical equipment. This study mainly revealed the relationship between the growth of the number of large-scale medical equipment and medical expenditure. Our novel perspective was used to measure the phenomenon of excessive use, and to explain the social phenomenon of inaccessible and expensive medical care in China.https://doi.org/10.1186/s12913-025-12209-7Medical equipmentHealthcare expenditureChina health systemDifference in differencesMedical technology
spellingShingle Qiwei Deng
Zhongliang Zhou
Chi Shen
Dan Cao
Dantong Zhao
Yaxin Zhao
Jianmin Gao
Will the increase of medical equipment affect medical expenditure? Empirical evidence from a quasi-experiment in China
BMC Health Services Research
Medical equipment
Healthcare expenditure
China health system
Difference in differences
Medical technology
title Will the increase of medical equipment affect medical expenditure? Empirical evidence from a quasi-experiment in China
title_full Will the increase of medical equipment affect medical expenditure? Empirical evidence from a quasi-experiment in China
title_fullStr Will the increase of medical equipment affect medical expenditure? Empirical evidence from a quasi-experiment in China
title_full_unstemmed Will the increase of medical equipment affect medical expenditure? Empirical evidence from a quasi-experiment in China
title_short Will the increase of medical equipment affect medical expenditure? Empirical evidence from a quasi-experiment in China
title_sort will the increase of medical equipment affect medical expenditure empirical evidence from a quasi experiment in china
topic Medical equipment
Healthcare expenditure
China health system
Difference in differences
Medical technology
url https://doi.org/10.1186/s12913-025-12209-7
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