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Public or Private? Which Source of Financing Helps to Achieve Higher Health System Efficiency?

In: Contemporary Trends and Challenges in Finance

Author

Listed:
  • Paweł Prędkiewicz

    (Wrocław University of Economics)

  • Agnieszka Bem

    (Wrocław University of Economics)

  • Paulina Ucieklak-Jeż

    (Jan Dlugosz University in Czestochowa)

  • Rafał Siedlecki

    (Wrocław University of Economics)

Abstract

In this study, we analyze the relationship between health care system’s financing and health system’s efficiency. We pose the following research hypotheses: (H1) system with higher ratio of public financing should achieve higher efficiency; (H2) public financing increases system efficiency for hospitals and lowers for outpatient care. We find that private financing in stationary care can lead to negative externalities, while private financing in the case of ambulatory care helps to achieve better elasticity and adjustments to the system and patients’ needs. In order to prove these assumptions we analyze data for 21 European OECD countries (in the years 2000–2015) which describe population’s health status representing life expectancy (LE) and the structure of financing (public versus private spending).

Suggested Citation

  • Paweł Prędkiewicz & Agnieszka Bem & Paulina Ucieklak-Jeż & Rafał Siedlecki, 2019. "Public or Private? Which Source of Financing Helps to Achieve Higher Health System Efficiency?," Springer Proceedings in Business and Economics, in: Krzysztof Jajuga & Hermann Locarek-Junge & Lucjan T. Orłowski & Karsten Staehr (ed.), Contemporary Trends and Challenges in Finance, pages 191-199, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-15581-0_18
    DOI: 10.1007/978-3-030-15581-0_18
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    Cited by:

    1. Beata Gavurova & Kristina Kocisova, 2020. "The efficiency of hospitals: platform for sustainable health care system," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 133-146, December.
    2. Mihaela Tofan & Mihaela Onofrei & Anca-Florentina Vatamanu, 2020. "Fiscal Responsibility Legal Framework—New Paradigm for Fiscal Discipline in the EU," Risks, MDPI, vol. 8(3), pages 1-18, July.
    3. Beata Gavurova & Jan Dvorsky & Boris Popesko, 2021. "Patient Satisfaction Determinants of Inpatient Healthcare," IJERPH, MDPI, vol. 18(21), pages 1-18, October.
    4. Beata Gavurova & Matus Kubak, 2021. "The efficiency evaluation of public procurement of medical equipment," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 193-209, March.

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