3: Financing healthcare: fundingSuzanne Robinson
systems and healthcare costs
IntroductionHealthcare funding in developed countries accounts for a large percentage of gross domestic product (GDP) and is usually the largest single
industry in most countries. Increased demand and technological advances
mean that healthcare expenditure continues to grow, whilst on the supply
side there is a constant pressure because resources are scarce. Policymakers
face tough decisions in this regard. Do they increase funding, contain
costs, or both? Whilst this debate continues in the literature (Mossialos et
al. 2002; Dixon et al. 2004), policymakers and managers alike need to
balance the books and thus find enough revenue to meet healthcare
expenditure. With public sector borrowing becoming a less attractive
economic policy option in developed countries, policymakers are
increasingly looking towards the structure and organisation of healthcare
systems – including revenue collection (demand side) and organisation of
service provision (supply side) – as a means to manage ever-increasing
pressures on health expenditure.This chapter explores four areas relevant to the financing of healthcare
in developed countries:
|• ||The first section draws on the work of Mossialos et al. (2002) and
Murray and Frenk (2000) to provide a framework by which to
facilitate understanding and analysis of healthcare funding.|
|• ||The second section draws on data from the Organisation for
Economic Co-operation and Development (OECD) and Office of
Health Economics (OHE) to explore the levels of healthcare expenditure in selected OECD countries.|
|• ||The third section looks at the examples of how money is distributed
through healthcare systems.|
|• ||The fourth section identifies some of the pressures on healthcare costs
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Healthcare Management.
Contributors: Kieran Walshe - Editor, Judith Smith - Editor.
Publisher: Open University Press.
Place of publication: Maidenhead, England.
Publication year: 2006.
Page number: 32.
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