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The Challenge of Financing Health Care in the Current Crisis: An Analysis Based on the OECD Data

Author

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  • Peter Scherer

    (OECD)

  • Marion Devaux

    (OECD)

Abstract

The ratio of health expenditure to GDP, which in macroeconomic terms is an indicator which summarises the financing needs of a national health system, is likely to rise in countries for which the GDP falls. Over the past four decades, health expenditure has risen in most countries at a faster rate than GDP, leading to a rise in the expenditure ratio. Fluctuations in this ratio can come about through fluctuations in either of its components. In some cases, notably the USA, GDP variation is the main origin of changes in the ratio, but in the majority of countries health expenditure variation is more important. The experience of countries which did reduce health expenditure after previous recessions suggests that such reductions are short-lived, and demand for health services results over time in a revival of health expenditure growth. La proportion des dépenses de santé par rapport au PIB, qui en termes macro-économiques est un indicateur récapitulant les besoins de financement d'un système de santé national, va probablement monter dans des pays où le PIB chute. Pendant les quatre dernières décennies, les dépenses de santé ont augmenté dans la plupart des pays plus rapidement que le PIB, menant à une hausse de la proportion des dépenses. Des fluctuations dans cette proportion peuvent survenir à la suite de variations dans l’une ou l’autre de ses composantes. Dans quelques cas, notamment aux États-Unis, la variation du PIB est à l'origine même de la différence du ratio, mais dans la majorité des pays, les variations de dépense de santé sont plus importantes. L'expérience des pays qui ont vraiment réduit leurs dépenses de santé après des récessions laisse à penser que de telles réductions sont de courte durée et que la demande de résultats en matière de services de la santé signifie à la longue une reprise de la croissance des dépenses de santé.

Suggested Citation

  • Peter Scherer & Marion Devaux, 2010. "The Challenge of Financing Health Care in the Current Crisis: An Analysis Based on the OECD Data," OECD Health Working Papers 49, OECD Publishing.
  • Handle: RePEc:oec:elsaad:49-en
    DOI: 10.1787/5kmfkgr0nb20-en
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    Cited by:

    1. Clemens, Timo & Michelsen, Kai & Commers, Matt & Garel, Pascal & Dowdeswell, Barrie & Brand, Helmut, 2014. "European hospital reforms in times of crisis: Aligning cost containment needs with plans for structural redesign?," Health Policy, Elsevier, vol. 117(1), pages 6-14.
    2. Felipa de Mello-Sampayo & Sofia de Sousa-Vale, 2014. "Financing Health Care Expenditure in the OECD Countries: Evidence from a Heterogeneous, Cross-Sectional Dependent Panel," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(2), pages 207-225, March.
    3. Christine André & Philippe Batifoulier & Mariana Jansen-Ferreira, 2016. "Privatisation de la santé en Europe. Un outil de classification des réformes," Working Papers hal-01256505, HAL.
    4. Noura Eissa, 2020. "Pandemic Preparedness and Public Health Expenditure," Economies, MDPI, vol. 8(3), pages 1-19, July.
    5. André, Christine, 2015. "Les systèmes de santé européens en longue période," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 17.
    6. Felipa de Mello-Sampayo & Sofia de Sousa-Vale, 2014. "Financing Health Care Expenditure in the OECD Countries: Evidence from a Heterogeneous, Cross-Sectional Dependent Panel," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(2), pages 207-225.
    7. Jaume Puig-Junoy & Pilar Garcia-Gomez & David Casado-Marin, 2011. "Free Medicines thanks to Retirement: Moral Hazard and Hospitalization Offsets in an NHS," Tinbergen Institute Discussion Papers 11-108/3, Tinbergen Institute.
    8. Christine André & Philippe Batifoulier & Mariana Jansen-Ferreira, 2016. "Privatisation de la santé en Europe. Un outil de classification des réformes," CEPN Working Papers hal-01256505, HAL.
    9. Schulz, Erika & Coda Moscarola, Flavia & Golinowska, Stanisława & Radvansky, Marek & Geyer, Johannes, 2013. "Impact of Ageing on Curative Health Care Workforce in Selected EU Countries," EconStor Preprints 128601, ZBW - Leibniz Information Centre for Economics.

    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • N00 - Economic History - - General - - - General

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