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The impact of cost-containment policies on health expenditure: Evidence from recent OECD experiences

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  • Rodrigo Moreno-Serra

Abstract

Many governments have enacted health cost-containment policies in recent years, and many are currently considering further reform alternatives to tackle growing health spending and promote efficiency in the health system, particularly in light of projections regarding future cost pressures in this sector. The focus of this study is to assess the most robust empirical evidence on the public spending effects of health policy alternatives to contain excess cost growth in the system. A stylised theoretical framework of the relationships between potential cost-containment measures, economic incentives and quantities, and health expenditure is suggested. The developed framework provides structural guidance for reviewing the evidence on the cost-containment impacts of various reforms implemented in OECD countries in the last decades. The accumulated evidence indicates that there are various alternative policies in a government’s toolkit that can be combined to achieve better cost control in the health system, provided institutional aspects and policy interactions are carefully considered. JEL classification: I10, I18, H51. Keywords: Health financing, cost containment, provider payment, health system reform.

Suggested Citation

  • Rodrigo Moreno-Serra, 2014. "The impact of cost-containment policies on health expenditure: Evidence from recent OECD experiences," OECD Journal on Budgeting, OECD Publishing, vol. 13(3), pages 1-29.
    • Handle: RePEc:oec:govkaa:5jxx2wl6lp9p
    DOI: 10.1787/budget-13-5jxx2wl6lp9p
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    Citations

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    Cited by:

    1. Sean Dougherty & Luca Lorenzoni & Alberto Marino & Fabrice Murtin, 2022. "The impact of decentralisation on the performance of health care systems: a non-linear relationship," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(4), pages 705-715, June.
    2. Pessino, Carola & Izquierdo, Alejandro & Vuletin, Guillermo, 2018. "Better Spending for Better Lives: How Latin America and the Caribbean Can Do More with Less," IDB Publications (Books), Inter-American Development Bank, number 9152.
    3. Carsten Colombier & Thomas Braendle, 2018. "Healthcare expenditure and fiscal sustainability: evidence from Switzerland," Public Sector Economics, Institute of Public Finance, vol. 42(3), pages 279-301.
    4. Rodrigo Moreno-Serra & Misael Anaya-Montes & Peter C Smith, 2019. "Potential determinants of health system efficiency: Evidence from Latin America and the Caribbean," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-21, May.
    5. Stadhouders, Niek & Kruse, Florien & Tanke, Marit & Koolman, Xander & Jeurissen, Patrick, 2019. "Effective healthcare cost-containment policies: A systematic review," Health Policy, Elsevier, vol. 123(1), pages 71-79.

    More about this item

    Keywords

    health financing; cost containment; provider payment; health system reform.;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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