IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/895-en.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/5kg51mbntk7j-en
    Download Restriction: no

    File URL: https://libkey.io/10.1787/5kg51mbntk7j-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Espen Erlandsen, 2007. "Improving the Efficiency of Health Care Spending: Selected Evidence on Hospital Performance," OECD Economics Department Working Papers 555, OECD Publishing.
    2. Isabelle Joumard & Christophe André & Chantal Nicq, 2010. "Health Care Systems: Efficiency and Institutions," OECD Economics Department Working Papers 769, OECD Publishing.
    3. Margit Sommersguter-Reichmann, 2000. "The impact of the Austrian hospital financing reform on hospital productivity: empirical evidence on efficiency and technology changes using a non-parametric input-based Malmquist approach," Health Care Management Science, Springer, vol. 3(4), pages 309-321, September.
    4. 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.
    5. Rie Fujisawa & Gaétan Lafortune, 2008. "The Remuneration of General Practitioners and Specialists in 14 OECD Countries: What are the Factors Influencing Variations across Countries?," OECD Health Working Papers 41, OECD Publishing.
    6. Unto Häkkinen & Isabelle Joumard, 2007. "Cross-Country Analysis of Efficiency in OECD Health Care Sectors: Options for Research," OECD Economics Department Working Papers 554, OECD Publishing.
    7. Office of Health Economics, 2007. "The Economics of Health Care," For School 001490, Office of Health Economics.
    8. Isabelle Joumard & Christophe André & Chantal Nicq & Olivier Chatal, 2008. "Health Status Determinants: Lifestyle, Environment, Health Care Resources and Efficiency," OECD Economics Department Working Papers 627, OECD Publishing.
    9. Eva Jenkner & Adam Leive, 2010. "Health Care Spending Issues in Advanced Economies," IMF Technical Notes and Manuals 10/16, International Monetary Fund.
    10. Valérie Paris & Marion Devaux & Lihan Wei, 2010. "Health Systems Institutional Characteristics: A Survey of 29 OECD Countries," OECD Health Working Papers 50, OECD Publishing.
    11. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Gunther Tichy, 2017. "Mangelnde Effizienz als Erfolgsbremse," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(9), pages 677-699, September.
    5. 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.
    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. 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.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pablo Hernández de Cos & Enrique Moral-Benito, 2011. "Health care expenditure in the oecd countries: efficiency and regulation," Occasional Papers 1107, Banco de España.
    2. Christine Mayrhuber & Matthias Firgo & Hans Pitlik & Alois Guger & Ewald Walterskirchen, 2018. "Sozialstaat und Standortqualität," WIFO Studies, WIFO, number 61006, April.
    3. Constantin Ogloblin, 2023. "Health care financing and productivity of health care in OECD countries: a stochastic frontier analysis," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 259-283, June.
    4. Godager, Geir & Iversen, Tor & Ma, Ching-to Albert, 2015. "Competition, gatekeeping, and health care access," Journal of Health Economics, Elsevier, vol. 39(C), pages 159-170.
    5. Braendle, Thomas & Colombier, Carsten, 2020. "Budgetary targets as cost-containment measure in the Swiss healthcare system? Lessons from abroad," Health Policy, Elsevier, vol. 124(6), pages 605-614.
    6. Francesco Porcelli, 2014. "Electoral accountability and local government efficiency: quasi-experimental evidence from the Italian health care sector reforms," Economics of Governance, Springer, vol. 15(3), pages 221-251, August.
    7. 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.
    8. Titeca, Hannes, 2016. "Healthcare Spending: The Role of Healthcare Institutions from an International Perspective," MPRA Paper 73678, University Library of Munich, Germany.
    9. Hans Pitlik, 2017. "Österreich 2025 – Verwaltungsreform zwischen Effizienzstreben und Reformwiderständen. Ein Überblick," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(3), pages 205-217, March.
    10. Raffaele Lagravinese & Paolo Liberati & Giuliano Resce, 2017. "Exploring health outcomes by stochastic multi-objective acceptability analysis: an application to Italian regions," Working Papers. Collection B: Regional and sectoral economics 1703, Universidade de Vigo, GEN - Governance and Economics research Network.
    11. Galina Besstremyannaya, 2014. "Urban inequity in the performance of social health insurance system: evidence from Russian regions," Working Papers w0204, Center for Economic and Financial Research (CEFIR).
    12. Thöne, Michael & Dobroschke, Stephan, 2010. "Qualität der öffentlichen Finanzen – Anwendung des Ansatzes der EU-Kommission auf Deutschland [The Quality of Public Finances – Assessment and exemplary application of the proposed approach by the ," FiFo Reports - FiFo-Berichte 12, University of Cologne, FiFo Institute for Public Economics.
    13. Miika Linna & Unto Häkkinen & Mikko Peltola & Jon Magnussen & Kjartan Anthun & Sverre Kittelsen & Annette Roed & Kim Olsen & Emma Medin & Clas Rehnberg, 2010. "Measuring cost efficiency in the Nordic Hospitals—a cross-sectional comparison of public hospitals in 2002," Health Care Management Science, Springer, vol. 13(4), pages 346-357, December.
    14. Novignon, Jacob & Lawanson, Akanni, 2014. "Efficiency of health systems in sub-Sahara Africa: a comparative analysis of time varying stochastic frontier models," MPRA Paper 56897, University Library of Munich, Germany.
    15. Nicaise, Pablo & Giacco, Domenico & Soltmann, Bettina & Pfennig, Andrea & Miglietta, Elisabetta & Lasalvia, Antonio & Welbel, Marta & Wciórka, Jacek & Bird, Victoria Jane & Priebe, Stefan & Lorant, Vi, 2020. "Healthcare system performance in continuity of care for patients with severe mental illness: A comparison of five European countries," Health Policy, Elsevier, vol. 124(1), pages 25-36.
    16. David Epstein & Anne Mason & Andrea Manca, 2008. "The hospital costs of care for stroke in nine European countries," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages 21-31, January.
    17. Mas, Nuria & Cirera, Laia & Viñolas, Guillem, 2011. "Los sistemas de copago en Europa, Estados Unidos y Canadá: Implicaciones para el caso español," IESE Research Papers D/939, IESE Business School.
    18. Susan Lu & Huaxia Rui, 2014. "Can We Trust Online Physician Ratings? Evidence from Cardiac Surgeons in Florida," Working Papers 14-01, NET Institute.
    19. Francesco Porcelli, 2009. "Effects of fiscal decentralisation and electoral accountability efficiency evidence from the Italian health care sector," Working Papers 2009/29, Institut d'Economia de Barcelona (IEB).
    20. Böhm, Katharina & Schmid, Achim & Götze, Ralf & Landwehr, Claudia & Rothgang, Heinz, 2012. "Classifying OECD healthcare systems: A deductive approach," TranState Working Papers 165, University of Bremen, Collaborative Research Center 597: Transformations of the State.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:895-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/edoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.