How to mate the health care structure most healthy? Determinants of health care structure efficiency in OECD countries

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2017-09-29
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en
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The current study investigates which policy-relevant institutional characteristics of a health care system provide a more efficient system. This is done because health care spending is increasing dramatically and with an aging population there is a need to make the health care sector more efficient. Efficiency factors are investigating by the use of the stochastic frontier analysis, which determines the level of technical inefficiency of a variable within a system. Institutional characteristics of a health care system are the determinants of efficiency. The study of Wranik (2011) will be followed to find the effect of institutional characteristics on the dependent variable, health outcome represented by HALE, in relation to health expenditure of a country. Panel data of four years for 20 OECD countries are used in the analysis. It turns out that the share of the population covered, and the regulation of the price level billed by providers have a negative effect on efficiency. The public share of total health care expenditures has a positive effect on efficiency in the health care sector as institutional variable. This information contributes to potential reforms of the health care sector by policy-makers.
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Faculteit der Managementwetenschappen
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