A literature review published in the Annals of Internal Medicine found that some cost-saving innovations may improve overall outcomes even when such innovations are slightly less effective than other available options because the innovations permit better overall resource allocation.  The review found that 0.4 percent of the innovations examined in 887 publications saved at least $100 000 per quality-adjusted life-year lost and that, per patient, those innovations “yielded savings from $122 to almost $12,000 but losses of 0.001 to 0.021 quality-adjusted life-years (approximately 8 hours to 1 week).”  

Nelson, A.L., Cohen, J.T., Greenberg, D., & Kent, D.M. Much cheaper, almost as good: decrementally cost-effective medical innovation. Annals of Internal Medicine, 151(9): 662-667. http://www.annals.org/content/151/9/662.abstract

Authors: Aaron L. Nelson, Joshua T. Cohen, Dan Greenberg, David M. Kent