Hostname: page-component-78c5997874-m6dg7 Total loading time: 0 Render date: 2024-11-19T09:32:35.480Z Has data issue: false hasContentIssue false

Value for Money: Health System Efficiency and Preferences for Health Care

Published online by Cambridge University Press:  16 October 2009

Peter Kotzian*
Affiliation:
Technische Universität Darmstadt
*
Peter Kotzian, Technische Universität Darmstadt, Institut für Politikwissenschaft, Residenzschloß, D-64283 Darmstadt, Germany, kotzian@pg.tu-darmstadt.de.

Abstract

Abstract. Health expenditure is influenced by health system efficiency, but it is also the result of societal decisions and preferences. Existing cross-national efficiency evaluations often do not fully take this into account, misinterpreting differences in preferences as differences in efficiency. This article estimates health system efficiency by taking preferences fully into account. The empirical findings confirm the theoretical argument, that omitting preferences leads to biased efficiency estimates. Countries and health systems differ with regard to health expenditure not so much because their institutional setting affects their efficiency, but because preferences and demands of their “customers” differ.

Résumé. L'efficacité du système de santé influe, certes, sur les dépenses de soins de santé, mais celles-ci sont également le résultat des décisions et des préférences de la société. Souvent, les évaluations transnationales existantes de l'efficacité du système de santé ne tiennent pas pleinement compte de ce facteur et prennent des différences de préférences pour des différences d'efficacité. Cet article évalue l'efficacité des systèmes de santé en tenant pleinement compte des préférences. Les données empiriques confirment l'argument théorique voulant que l'omission des préférences mène à des estimations d'efficacité déformées. Les dépenses de soins de santé varient d'un pays et d'un système à l'autre, non pas tant parce que leur cadre institutionnel influe sur l'efficacité, mais plutôt parce que les préférences et les demandes de leurs «clientèles» varient.

Type
Research Article
Copyright
Copyright © Canadian Political Science Association 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anderson, Gerard F., Reinhardt, Uwe E., Hussey, Peter S. and Petrosyan, Varduhi. 2003. “It's the Prices, Stupid: Why the United States Is So Different from Other Countries.” Health Affairs 22: 89105.CrossRefGoogle ScholarPubMed
Ashenfelter, Orley and Greenstone, Michael. 2004. “Estimating the Value of a Statistical Life: The Importance of Omitted Variables and Publication Bias.” American Economic Review 94: 454–60.CrossRefGoogle Scholar
Berndt, Ernst R., Cutler, David M., Frank, Richard G., Griliches, Zvi and Newhouse, Joseph P.. 1998. “Price Indexes for Medical Care Goods and Services: An Overview of Measurement Issues.” NBER Working Paper 6817. Cambridge MA: National Bureau of Economic Research.CrossRefGoogle Scholar
Bhargava, Alok, Jamison, Dean T., Lau, Lawrence J. and Murray, Christopher J. L.. 2001. “Modeling the Effects of Health on Economic Growth.” Journal of Health Economics 20: 423–40.CrossRefGoogle ScholarPubMed
Bhat, Vasathakumar N. 2005. “Institutional Arrangements and Efficiency of Health Care Delivery Systems.” European Journal of Health Economics 6: 215–22.CrossRefGoogle ScholarPubMed
Blendon, Robert J., Leitman, Robert, Morrison, Ian and Donelan, Karen. 1990. “Satisfaction with Health Systems in Ten Nations.” Health Affairs 9: 185–92.CrossRefGoogle ScholarPubMed
Cutler, David M., Deaton, Angus S. and Lleras-Muney, Adriana. 2006. “The Determinants of Mortality.” Journal of Economic Perspectives 20 (3): 97120.CrossRefGoogle Scholar
Dionne, Georges and Lanoie, Paul. 2004. “Public Choice about the Value of a Statistical Life for Cost-Benefit Analyses: The Case of Road Safety.” Journal of Transport Economics and Policy 38: 247–74.Google Scholar
Donaldson, Cam and Shackley, Phil. 1997. “Does ‘Process Utility’ Exist? A Case Study of Willingness to Pay for Laparoscopic Cholecystectomy.” Social Science and Medicine 44: 699707.CrossRefGoogle ScholarPubMed
Evans, David B., Tandon, Ajay, Murray, Christopher J. L. and Lauer, Jeremy A.. 2000a. “Estimates of Income Per Capita, Literacy, Educational Attainment, Absolute Poverty, and Income Gini Coefficients for the World Health Report 2000.” Global Program on Evidence for Health Policy, Discussion Paper no. 7. Geneva: World Health Organization.Google Scholar
Evans, David B., Tandon, Ajay, Murray, Christopher J. L. and Lauer, Jeremy A.. 2000b. “The Comparative Efficiency of National Health Systems in Producing Health: An Analysis of 191 Countries.” Global Program on Evidence for Health Policy, Discussion Paper Series no. 29. Geneva: World Health Organization.Google Scholar
Filmer, Deon and Pritchett, Lant. 1999. “The Impact of Public Spending On Health: Does Money Matter?Social Science and Medicine 49: 1309–23.CrossRefGoogle ScholarPubMed
Fox, John. 1991. Regression Diagnostics. Thousand Oaks CA: Sage.CrossRefGoogle Scholar
Getzen, Thomas E. 2000. “Health Care Is an Individual Necessity and a National Luxury: Applying Multilevel Decision Models to the Analysis of Health Care Expenditures.” Journal of Health Economics 19: 259–70.CrossRefGoogle Scholar
Greene, William H. 2004. “Distinguishing between Heterogeneity and Inefficiency: Stochastic Frontier Analysis of the World Health Organization's Panel Data on National Health Care Systems.” Health Economics 13: 959–80.CrossRefGoogle ScholarPubMed
Grossman, Michael 1972. “On the Concept of Health Capital and the Demand for Health.” Journal of Political Economy 80: 223–55.CrossRefGoogle Scholar
Huntington, Samuel P. 1996. The Clash of Civilizations and the Remaking of World Order. New York: Simon & Schuster.Google Scholar
Inglehart, Ronald F. 1977. The Silent Revolution: Changing Values and Political Styles among Western Publics. Princeton NJ: Princeton University Press.Google Scholar
Johnston, Donald J. 2004. “Increasing Value for Money in Health Systems.” European Journal of Health Economics 5: 9194.Google ScholarPubMed
Meer, Jonathan, Miller, Douglas L. and Rosen, Harvey S.. 2003. “Exploring the Health-Wealth Nexus.” Journal of Health Economics 22: 713–30.CrossRefGoogle ScholarPubMed
Mooney, Gavin. 1998. “Beyond Health Outcomes: The Benefits of Health Care.” Health Care Analysis 6: 99105.CrossRefGoogle ScholarPubMed
Mossialos, Elias. 1997. “Citizens' Views on Health Care Systems in the 15 Member States of the European Union.” Health Economics 6: 109–16.3.0.CO;2-L>CrossRefGoogle ScholarPubMed
Navarro, Vicente. 2001. “The New Conventional Wisdom: An Evaluation of the WHO Report Health Systems: Improving Performance.” International Journal of Health Services 31: 2333.CrossRefGoogle ScholarPubMed
Newhouse, Joseph P. 1977. “Medical-Care Expenditure: A Cross-National Survey.” Journal of Human Resources 12: 115–25.CrossRefGoogle ScholarPubMed
Newhouse, Joseph P. 1992. “Medical Care Costs: How Much Welfare Loss?Journal of Economic Perspectives 6: 321.CrossRefGoogle ScholarPubMed
Newhouse, Joseph P. 2001. “Medical Care Price Indices: Problems and Opportunities.” NBER Working Paper 8168. Cambridge MA: National Bureau of Economic Research.Google Scholar
Nolte, Ellen and McKee, Martin. 2003. “Measuring the Health of Nations: Analysis of Mortality Amenable to Health Care.” British Medical Journal 327: 1129–33.CrossRefGoogle ScholarPubMed
Nordhaus, William D. 2002. “The Health of Nations: The Contribution of Improved Health to Living Standards.” NBER Working Paper 8818. Cambridge MA: National Bureau of Economic Research.CrossRefGoogle Scholar
Perry, Robert L. and Robertson, John D.. 2002. Comparative Analysis of Nations. Boulder CO: Westview Press.Google Scholar
Pritchett, Lant and Summers, Lawrence H. 1996. “Wealthier is Healthier.” Journal of Human Resources 31: 841–68.CrossRefGoogle Scholar
Retzlaff-Roberts, Donna, Chang, Cyril F. and Rubin, Rose M.. 2004. “Technical Efficiency in the Use of Health Resources: A Comparison of OECD Countries.” Health Policy 69: 5572.CrossRefGoogle ScholarPubMed
Rice, Dorothy P. and Hodgson, Thomas A.. 1982. “The Value of Human Life Revisited.” American Journal of Public Health 72: 536–38.CrossRefGoogle ScholarPubMed
Self, Sharmistha and Grabowski, Richard. 2003. “How Effective Is Public Health Expenditure in Improving Overall Health? A Cross-Country Analysis.” Applied Economics 35: 835–45.CrossRefGoogle Scholar
Tengs, Tammy O., Adams, M.E., Pliskin, J.S., Safran, D.G., Siegel, J.E., Weinstein, M.C. and Graham, J.D.. 1995. “Five-Hundred Life-Saving Interventions and Their Cost-Effectiveness.” Risk Analysis 15: 369–90.CrossRefGoogle ScholarPubMed
Valentine, Nicole B., de Silva, Amla and Murray, Christopher J. L.. 2000. “Estimating Responsiveness Level and Distribution for 191 Countries: Methods and Results.” Global Program on Evidence for Health, Discussion Paper Series no. 22. Geneva: World Health Organization.Google Scholar
van Zon, Adriaan and Muysken, Joan. 2005. “Health as a Principal Determinant of Economic Growth.” In Health and Economic Growth: Findings and Policy Implications, ed. López-Casasnovas, Guillem, Rivera, Berta and Currais, Luis. Cambridge MA: MIT Press.Google Scholar
Viscusi, W. Kip and Aldy, Joseph E.. 2003. “The Value of a Statistical Life: A Critical Review of Market Estimates Throughout the World.” Journal of Risk and Uncertainty 27: 576.CrossRefGoogle Scholar
WHO (World Health Organization). 2000. The World Health Report 2000. Geneva: WHO.Google Scholar
Williams, Alan. 2001. “Science or Marketing at WHO? A Commentary on World Health 2000.” Health Economics 10: 93100.CrossRefGoogle ScholarPubMed