In 1998, Israeli company Given Imaging announced a new method for diagnosing gastrointestinal track diseases: a tiny encapsulated video camera that could be digested by patients. With an estimated 70 million Americans afflicted by GI diseases, diagnosing such problems are big business. Initial tests indicate that the PillCam helped doctors make more accurate diagnoses. It could also reduce costs by eliminating typical endoscopy-related hospital stays, anesthesia and support care. In this case students consider what factors should be considered and what data is still needed before setting the PillCam's price in the complex US healthcare marketplace.

Case id: 080516