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The advantages and disadvantages of needs-based resource allocation in integrated health systems and market systems of health care provider reimbursement

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  • Gugushvili, Alexi

Abstract

This paper reviews the vital health care resource allocation in integrated systems and contrasts it with the market-based health care resource provisions. It is believed that among several alternatives a method of centrally managed needs-based resource distribution is best suited for universally appraised code of “equal treatment of equals”. However, the main problem hides in identification and measurement of “need” and in economic effectiveness of the methodology. Supposedly, from the 1980s, as an innovative approach, the market system of health care provider reimbursement had to resolve the problems associated with centralised needs-based resource allocation, maintaining the main achievements and improving the effectiveness of the systematic distribution. Nonetheless, as this paper shows, so far there is little evidence that the market-based health care provider reimbursement advances the allocative performance of various health care systems.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3354.

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Date of creation: May 2007
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Handle: RePEc:pra:mprapa:3354

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Keywords: Health systems; Resource allocation; Health care needs; Marketisation of health;

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  1. Greer Gay, E. & Kronenfeld, Jennie J., 1990. "Regulation, retrenchment-- The DRG experience: Problems from changing reimbursemwnt practice," Social Science & Medicine, Elsevier, vol. 31(10), pages 1103-1118, January.
  2. Arthur Midwinter, 2002. "Territorial Resource Allocation in the UK: A Rejoinder on Needs Assessment," Regional Studies, Taylor & Francis Journals, vol. 36(5), pages 563-567.
  3. Adam Oliver, 2005. "The English National Health Service: 1979-2005," Health Economics, John Wiley & Sons, Ltd., vol. 14(S1), pages S75-S99.
  4. Nigel Rice & Paul Dixon & David Lloyd & David Roberts, 1999. "Derivation of a needs based capitation formula for allocation prescribing budgets," Working Papers 034cheop, Centre for Health Economics, University of York.
  5. van de ven, Wynand P. M. M., 1996. "Market-oriented health care reforms: Trends and future options," Social Science & Medicine, Elsevier, vol. 43(5), pages 655-666, September.
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  7. Agota Szende & Zsolt Mogyorosy, 2004. "Health care provider payment mechanisms in the new EU members of Central Europe and the Baltic states," The European Journal of Health Economics, Springer, vol. 5(3), pages 259-262, September.
  8. Eyles, J. & Birch, S. & Chambers, S. & Hurley, J. & Hutchison, B., 1991. "A needs-based methodology for allocating health care resources in Ontario, Canada: Development and an application," Social Science & Medicine, Elsevier, vol. 33(4), pages 489-500, January.
  9. Al, Maiwenn J. & Feenstra, Talitha & Brouwer, Werner B. F., 2004. "Decision makers' views on health care objectives and budget constraints: results from a pilot study," Health Policy, Elsevier, vol. 70(1), pages 33-48, October.
  10. Litaker, David & Love, Thomas Ezra, 2005. "Health care resource allocation and individuals' health care needs: examining the degree of fit," Health Policy, Elsevier, vol. 73(2), pages 183-193, August.
  11. Williams, Iestyn & Bryan, Stirling, 2007. "Understanding the limited impact of economic evaluation in health care resource allocation: A conceptual framework," Health Policy, Elsevier, vol. 80(1), pages 135-143, January.
  12. Manning, Willard G. & Marquis, M. Susan, 1996. "Health insurance: The tradeoff between risk pooling and moral hazard," Journal of Health Economics, Elsevier, vol. 15(5), pages 609-639, October.
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