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Can We Get Better for Less: Value for Money in Canadian Health Care

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  • Amin Mawani

    (York University)

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    Abstract

    Over the past decade, Canadian health care expenditures have grown at a rate significantly higher than that of the growth in the economy and the growth in combined federal-provincial tax revenues. However, allocating an increasing amount of resources to health care does not necessarily lead to better health care, and despite significant investment, Canadians do not seem to receive sufficient value from the health care system. This paper aims to analyze the prospective rationale for emphasizing the concept of value-for-money in the largest segment of the Canadian health care system – hospitals. The results of the analysis show that a lack of activity-based or patient-based funding historically may have limited hospitals’ ability to assess their own effectiveness and efficiency. A focus on outcome measures alone may not be sufficient to assess and evaluate management for the stewardship of resources allocated to them. Outcome measures may not reflect how much value-for-money results from health care spending, while introducing incentives for improving quality of health care is not sufficient to improve efficiency of health care delivery.

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    File URL: http://ideas.cga-canada.org/WorkingPapers/110503.pdf
    File Function: First version, 2011
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    Bibliographic Info

    Paper provided by Certified General Accountants Association of Canada in its series Working Papers with number 110503.

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    Length: 20 pages
    Date of creation: May 2011
    Date of revision:
    Handle: RePEc:cga:wpaper:110503

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    Keywords: health care; hospitals; value-for-money measurement;

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    1. Stuart Landon & Melville L. McMillan & Vijay Muralidharan & Mark Parsons, 2006. "Does Health-Care Spending Crowd Out Other Provincial Government Expenditures?," Canadian Public Policy, University of Toronto Press, vol. 32(2), pages 121-142, June.
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