Work

Externalities from Medical Innovation: Evidence from Organ Transplantation

Year: 2023
Type: report
Study design: Observational Study
Abstract: We evaluate the introduction of direct-acting antiviral (DAA) therapy for Hepatitis C (HCV) on liver transplant allocation in the United States.We develop a model of listing and organ acceptance behavior for patients with both HCV-positive and HCV-negative end-stage liver disease.In the model, DAAs obviate the need for transplant for some HCV-positive patients, which shortens the waiting list, potentially benefiting HCV-negative registrants and inducing marginal HCV-negative patients to list.Using data from the universe of transplants between 2005 and 2019, we find that DAA availability resulted in an additional 5,682 liver transplants to HCVnegative recipients between 2014 and 2019, driven in part by a 37% average annual increase in HCV-negative waiting list registrations.Our estimates imply that DAAs generated $7.52 billion in positive externalities for HCV-negative patients during this period.
Language: English
Subfield: Hepatology
Field: Medicine
Open Access status: green
OpenAlex ID: W4386621250
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