[EQ] Research synthesis on cost drivers in the health sectors and proposed policy options

Research synthesis on cost drivers in the health sectors and proposed policy options

Ottawa, Canada - February 2011 - CHSRF series of reports Paper 1

Alexandra Constant, Stephen PetersenCharles D. Mallory, Jennifer Major

Available online at: http://bit.ly/hRlsbC

“……. This report synthesizes the current body of knowledge on cost drivers in Canadian healthcare.
Cost drivers are factors that bring about increased spending on healthcare. Thus, a comprehensive understanding of cost drivers is essential to a productive debate on the sustainability of Canada’s publicly funded healthcare systems.

 

In Canada, health spending is rising faster than the economy is growing (Section 2). Over the 1999–2009 period, expenditure growth within the health sector was fastest for capital (e.g. construction of hospitals, medical equipment or software for healthcare facilities), drugs and public health (e.g. food and drug safety, health promotion, community mental health programs, and prevention of communicable diseases). While reimbursements for hospital and physician services comprise the bulk of public sector healthcare spending, growth in these areas was comparatively small….”

Key Messages

■Potential emerging cost pressures include a trend toward personalized medicine and the presence of direct-to-consumer advertising for diagnostic and genetic testing.

Policies can be implemented to manage rising healthcare expenditures and to improve value for money (efficiency) within systems.

■Instituting a wider use of health technology assessment at all levels in health systems to inform clinical decision-making, reimbursement decisions, setting priorities and negotiating prices of new technologies, and provider fees

■Shifting priorities for the allocation of funds within systems to support services, which reduce spending in higher cost areas, such as accelerating funding increases for community care 

■Accelerating the implementation of coordinated health information technology systems 

■Implementing measures to contain prescription drug expenditure growth 

■Developing alternative provider and hospital payment arrangements. ………….”

Table of contents

1. Introduction

2. Where IS the Money Going?

2.1 Current healthcare expenditure trends and health status

2.2 International healthcare expenditure comparisons

3. What underlies rising healthcare expenditures? Key Cost drivers in Canada

3.1 Changing demographics and the impact on healthcare spending

3.2 Does what we earn affect the way we spend on healthcare? The effect of income growth

3.3 Paying more or getting more for what we are paying? Inflation in the health sector

3.4 Unmeasured growth: The enrichment factor

3.5 The effect of key cost drivers by spending category

4. What are Potential or Emerging Presures on Healthcare Expenditures?

4.1 Personalized medicine and direct-to-consumer advertising of diagnostic or genetic tests

5. Policy options for cost containment and/or improved Value for money

5.1 Value for money by increasing the use of health technology assessment

5.2 Shifting priorities in funding allocation to reduce spending in higher cost areas

5.3 Value for money from coordinated health information technology

5.4 Restraining prescription drug expenditure growth in Canada

5.5 Alternative provider payment and hospital arrangements

6. Conclusion

7. References

 

Appendices

Appendix A: Public Sector Health Expenditure Growth by Use of Funds and GDP, Provinces.

 

 

 *      *     *
This message from the Pan American Health Organization, PAHO/WHO, is part of an effort to disseminate
information Related to: Equity; Health inequality; Socioeconomic inequality in health; Socioeconomic
health differentials; Gender; Violence; Poverty; Health Economics; Health Legislation; Ethnicity; Ethics;
Information Technology - Virtual libraries; Research & Science issues.  [DD/ KMC Area]
Washington DC USA

“Materials provided in this electronic list are provided "as is". Unless expressly stated otherwise, the findings
and interpretations included in the Materials are those of the authors and not necessarily of The Pan American
Health Organization PAHO/WHO or its country members”.
------------------------------------------------------------------------------------
PAHO/WHO Website
Equity List - Archives - Join/remove: http://listserv.paho.org/Archives/equidad.html
Twitter http://twitter.com/eqpaho

IMPORTANT: This transmission is for use by the intended
recipient and it may contain privileged, proprietary or
confidential information. If you are not the intended
recipient or a person responsible for delivering this
transmission to the intended recipient, you may not
disclose, copy or distribute this transmission or take
any action in reliance on it. If you received this transmission
in error, please dispose of and delete this transmission.

Thank you.