The purpose of this paper is to evaluate the performance of health care systems and identify its determinants with a comparative analysis of panel data for the last 30 years in OECD countries, suggesting policy implications for Korea.
The main finding...
The purpose of this paper is to evaluate the performance of health care systems and identify its determinants with a comparative analysis of panel data for the last 30 years in OECD countries, suggesting policy implications for Korea.
The main findings could be summarized as follows: A universal coverage for the entire population improved accessibility to health services and equity in financing and utilization. A universal coverage can be accomplished through either social insurance or private insurance. However, a universal coverage has not been completed in a health care system without mandatory policy. Accessibility was not insured by universal coverage only, indicating need of public investments in order to remove social barriers to accessibility.
An increase in cost-sharing was effective in reducing public expenditure on health services, but could not decrease national health expenditure in most OECD countries. It showed crowding out effect or shifting medical costs to private sector, and hardly reduced expenditures on health services with inelastic demand, specially hospital services, while it influenced negatively on equity and accessibility to health services.
Horizontal index measuring equity in health service utilization showed little inequity in ambulatory care services but there were serious inequites in hospital services and dental care.
Quality of care, safety, and consumer satisfaction were enhanced through improvements in management information system, health care delivery system, evidence-based medicine.
Payment system has given effective incentives to improve performance of health care system. Empirical results showed good performance in global budget and capitation, while bad in fee-for-service.
A public-integrated model(public financing-single payer system), service volume control, and global budget are considered as effective policy instruments for cost containment and improving efficiency. Competition policy was not successful due to a fundamental characteristic of monopoly in medical service market. Selective contracts with providers, economic evaluation for medical technology, price control for pharmaceuticals were also effective in cost containment.
Significant determinants of good performance in health care systems were identified as public financing, payment system of capitation or salary, public-integrated model, prospective payment, increase in physicians per population.
All these results imply government regulation policy(Policy X) is more effective than competition policy in improving performance of health care system, which means health care system belongs to System X.
Responsiveness to comsumer's demand, measured by waiting time for elective surgery, has positive association with number of beds, number of specialists, medical expenditure, and fee-for-service. This suggests that responsiveness and efficiency may be in trade-off in health care system.
Consumer satisfaction and medical technology progress have been enhanced in a system with fee-for-service and public financing. However, private health insurance has been negative in quality of care, equity, and efficiency, although it has contributed to responsiveness for small number of subscribers.