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Assessing the Efficiency of Countries in Making Progress Towards Universal Health Coverage: A Data Envelopment Analysis of 172 Countries

39 Pages Posted: 4 Aug 2020

See all articles by Emma Jordi

Emma Jordi

University College London - Institute for Global Health

Caitlin Pley

University of Cambridge - School of Clinical Medicine

Matthew Jowett

World Health Organization (WHO)

Gerard Joseph Abou Jaoude

University College London - Institute for Global Health

Hassan Haghparast-Bidgoli

University College London - Institute for Global Health

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Abstract

Background: Maximising efficiency of resources is critical to progressing towards Universal Health Coverage (UHC) and therefore the Sustainable Development Goal (SDG) for Health. This study estimates the technical efficiency of national health spending in achieving UHC and its determinants.

Methods: A two-stage efficiency analysis using Simar and Wilson’s double bootstrap data envelopment analysis investigates how efficiently countries convert health spending into UHC outputs (measured by service coverage and financial risk protection) for 172 countries. We use World Bank and World Health Organization data from 2015. Thereafter, the environmental factors affecting efficient progress toward UHC goals are identified.

Findings: The mean bias-corrected technical efficiency score across 172 countries is 85·7% (68·9% for low income and 95·5% for high income countries). High-achieving middle- and low-income countries such as El Salvador, Colombia, Rwanda and Malawi demonstrate that peer-relative efficiency can be attained at all incomes. Governance capacity, income and education are significant determinants of the efficiency score. Sensitivity analysis suggests that results are robust to changes.

Interpretation: We provide a 2015 baseline for cross-country UHC technical efficiency scores. If countries wish to improve their UHC outputs within existing budgets, they should identify their current efficiency and try to emulate more efficient peers. Policy-makers should focus on strengthening institutions, improving data availability on UHC indicators and implementing known best practices to replicate efficient systems. Using resources more efficiently is likely to positively impact UHC coverage goals and health outcomes, and without addressing gaps in efficiency progress towards achieving the SDGs will be impeded.

Funding Statement: None.

Declaration of Interests: We declare no competing interests.

Keywords: Data envelopment analysis; health system efficiency; universal health coverage; technical efficiency; DEA

Suggested Citation

Jordi, Emma and Pley, Caitlin and Jowett, Matthew and Jaoude, Gerard Joseph Abou and Haghparast-Bidgoli, Hassan, Assessing the Efficiency of Countries in Making Progress Towards Universal Health Coverage: A Data Envelopment Analysis of 172 Countries (4/19/2020). Available at SSRN: https://ssrn.com/abstract=3582741 or http://dx.doi.org/10.2139/ssrn.3582741

Emma Jordi (Contact Author)

University College London - Institute for Global Health ( email )

United Kingdom

Caitlin Pley

University of Cambridge - School of Clinical Medicine

Cambridge
United Kingdom

Matthew Jowett

World Health Organization (WHO)

20 Avenue Appia
Geneva 27, CH-1211
Switzerland

Gerard Joseph Abou Jaoude

University College London - Institute for Global Health

United Kingdom

Hassan Haghparast-Bidgoli

University College London - Institute for Global Health ( email )

United Kingdom

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