Improvements in medical treatment have clearly contributed to significant increases in medical spending, yet there is relatively little quantitative evidence on whether the rise in expenditure is “worth it” in the sense of producing health outcomes of commensurate value. This seminar will focus on empirical research assessing the net value of health care for patients with chronic disease, using the case of type 2 diabetes mellitus. Based on analysis of detailed longitudinal, patient-level data, the collaborating researchers from Hong Kong, Japan, Taiwan, the Netherlands, and the US describe patterns in resource use and quality outcomes as measured by clinical markers and predicted risk of complications and death. In most of the studied cases, increases in spending were accompanied with improvements in outcomes of commensurate or greater value, given a range of values for a quality-adjusted life year. The authors conclude with a discussion of what the results imply about productivity of medical care, quality adjustment of price indices for healthcare, and policies for healthy aging in Asia (based on a forthcoming book).