Can technology reduce health care costs?

It seems obvious to try to develop substitute medical technologies that are less costly than those which they replace, yet which produce the same or better clinical results. However, new technologies seldom entirely replace existing technologies, so is the concept of a substitute technology unrealistic? The paper examines this idea in the context of medical devices covering the following points: cost assessment; technology assessment; effect of technology on health care costs; cost of medical errors; and future developments.