The Changing Role of Government in Financing Health Care: An International Perspective

63 Pages Posted: 20 Sep 2013 Last revised: 12 Feb 2023

See all articles by Mark Stabile

Mark Stabile

INSEAD; National Bureau of Economic Research (NBER)

Sarah Thomson

London School of Economics & Political Science (LSE)

Date Written: September 2013

Abstract

This paper explores the changing role of government involvement in health care financing policy outside the United States. It provides a review of the economics literature in this area to understand the implications of recent policy changes on efficiency, costs and quality. Our review reveals that there has been some convergence in policies adopted across countries to improve financing incentives and encourage efficient use of health services. In the case of risk pooling, all countries with competing pools experience similar difficulties with selection and are adopting more sophisticated forms of risk adjustment. In the case of hospital competition, the key drivers of success appear to be what is competed on and measurable rather than whether the system is public or private. In the case of both the success of performance-related pay for providers and issues resulting from wait times, evidence differs both within and across jurisdictions. However, the evidence does suggest that some governments have effectively reduced wait times when they have chosen explicitly to focus on achieving this goal. Many countries are exploring new ways of generating revenues for health care to enable them to cope with significant cost growth. However, there is little evidence to suggest that collection mechanisms alone are effective in managing the cost or quality of care.

Suggested Citation

Stabile, Mark and Thomson, Sarah, The Changing Role of Government in Financing Health Care: An International Perspective (September 2013). NBER Working Paper No. w19439, Available at SSRN: https://ssrn.com/abstract=2328489

Mark Stabile (Contact Author)

INSEAD ( email )

Boulevard de Constance
F-77305 Fontainebleau Cedex
France

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Sarah Thomson

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
56
Abstract Views
525
Rank
671,301
PlumX Metrics