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Reforming Austria's Highly Regarded but Costly Health System

Author

Listed:
  • Rauf Gönenç

    (OECD)

  • Maria M. Hofmarcher

    (Gesundheit Osterreich GmbH)

  • Andreas Wörgötter

    (OECD)

Abstract

The highly regarded Austrian health system delivers good quality and easily accessible services, but is costly. Its governance and funding structure is highly fragmented and it makes too much use of inpatient care in hospitals. Entry and competition opportunities are de facto limited in most health markets. The system operates therefore on a supply-driven basis, and does not have clear mechanisms to optimize spending on a cost-benefit basis. Population lifestyles are also not supportive of good health outcomes and suffer important differences between social groups, raising risks for the future. This Working Paper reviews Austrian authorities’ responses to these challenges, and makes recommendations based on OECD countries’ experiences. The suggested priorities are: i) more clearly assigning the performance, financing and spending responsibilities in the system, ii) enforcing a national capacity plan for publicly-funded inpatient and outpatient care, iii) introducing performance-based payment mechanisms in all services, iv) promoting the transition to “integrated care” by better balancing preventive, outpatient, inpatient, rehabilitation and long-term care, v) emphasizing healthier lifestyles and monitoring progress against national health goals (such as targets for obesity and overweight rates), and vi) better clarifying the medium-term fiscal outlook and scenarios of the system. This working paper is a slightly revised and completed version Réformer le système de santé très apprécié mais coûteux de l'Autriche Le système de santé autrichien, très apprécié, qui dispense des soins de qualité et aisément accessibles, est néanmoins coûteux. Sa structure de gouvernance et de financement est très compartimentée et le recours à l’hospitalisation est excessif. L’entrée dans le secteur et la concurrence sont de facto limitées sur la plupart des marchés de la santé. Le système est donc régi par l’offre et ne dispose pas de mécanismes précis permettant d’optimiser la dépense selon un bon rapport coûts-avantages. Les modes de vie de la population ne favorisent pas non plus de bons résultats en matière de santé et il existe d’amples disparités entre les groupes sociaux, ce qui constitue un risque pour l’avenir. Le présent document de travail passe en revue les mesures prises par les autorités autrichiennes face à ces défis et formule des recommandations fondées sur l’expérience des pays de l'OCDE. Les priorités qu’il est proposé de retenir sont les suivantes : i) définir plus précisément les responsabilités respectives au sein du système en matière de performance, de financement et de dépenses ; ii) mettre en application un plan de capacités pour les soins hospitaliers et ambulatoires financés sur fonds publics, iii) mettre en place dans tous les services des mécanismes de rémunération en fonction de la performance, iv) favoriser la transition vers une « intégration des soins » en veillant à un meilleur équilibre entre soins préventifs, soins ambulatoires, soins hospitaliers, soins de réadaptation et soins de longue durée, v) promouvoir des modes de vie sains et suivre les progrès par rapport aux objectifs nationaux de santé (comme des repères de taux d’obésité et de surpoids), et vi) mieux définir les perspectives et les scénarios budgétaires à moyen terme qui se profilent pour le système. Ce document de travail est une version légèrement révisée et complétée du chapitre spécial de l'Etude économique de l'OCDE de l’Autriche 2011 (www.oecd.org/eco/etudes/autriche).

Suggested Citation

  • Rauf Gönenç & Maria M. Hofmarcher & Andreas Wörgötter, 2011. "Reforming Austria's Highly Regarded but Costly Health System," OECD Economics Department Working Papers 895, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:895-en
    DOI: 10.1787/5kg51mbntk7j-en
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    References listed on IDEAS

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    8. Valérie Paris & Marion Devaux & Lihan Wei, 2010. "Health Systems Institutional Characteristics: A Survey of 29 OECD Countries," OECD Health Working Papers 50, OECD Publishing.
    9. David Dranove, 2008. "Introduction to Code Red: An Economist Explains How to Revive the Healthcare System without Destroying It," Introductory Chapters, in: Code Red: An Economist Explains How to Revive the Healthcare System without Destroying It, Princeton University Press.
    10. Johannes Klotz, 2010. "Convergence or divergence of educational disparities in mortality and morbidity? The evolution of life expectancy and health expectancy by educational attainment in Austria in 1981-2006," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 8(1), pages 139-174.
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    Cited by:

    1. Gerald J. Pruckner & Thomas Schober, 2018. "Hospitals and the generic versus brand‐name prescription decision in the outpatient sector," Health Economics, John Wiley & Sons, Ltd., vol. 27(8), pages 1264-1283, August.
    2. Gunther Tichy, 2017. "Mangelnde Effizienz als Erfolgsbremse," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(9), pages 677-699, September.
    3. Pruckner, Gerald J. & Halla, Martin & Schober, Thomas, 2015. "On the Effectiveness of Developmental Screenings: Evidence from a Nationwide Program in Austria," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113020, Verein für Socialpolitik / German Economic Association.
    4. Kostera, Thomas, 2013. "Subnational responsibilities for healthcare and Austria's rejection of the EU's patients’ rights Directive," Health Policy, Elsevier, vol. 111(2), pages 149-156.
    5. Halla, Martin & Pruckner, Gerald J. & Schober, Thomas, 2016. "Cost savings of developmental screenings: Evidence from a nationwide program," Journal of Health Economics, Elsevier, vol. 49(C), pages 120-135.
    6. Halla, Martin & Pruckner, Gerald J. & Schober, Thomas, 2015. "The Cost-Effectiveness of Developmental Screenings: Evidence from a Nationwide Programme," IZA Discussion Papers 9303, Institute of Labor Economics (IZA).
    7. Oliver Fritz & Peter Mayerhofer & Reinhard Haller & Gerhard Streicher & Florian Bachner & Herwig Ostermann, 2013. "Die regionalwirtschaftlichen Effekte der österreichischen Krankenanstalten," WIFO Studies, WIFO, number 46672, April.
    8. Hofmarcher, Maria M., 2014. "The Austrian health reform 2013 is promising but requires continuous political ambition," Health Policy, Elsevier, vol. 118(1), pages 8-13.

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    More about this item

    Keywords

    Austria; Autriche; dépenses publiques; efficacité; efficiency; health care system; health institutions and policies; institutions et politiques de santé; public spending; système de santé;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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