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Dimensions of health care system quality in Finland

  • Jenni Pääkkönen
  • Timo Seppälä
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    This paper evaluates the determinants of quality - cost relationship in primary health care. We first summarize information from various indicators of care by principal component analysis (PCA), effectively producing quality of care indicators: accessibility, coverage and allocative efficiency. We then regress the costs of care against these indicators to evaluate their relationship. Our results suggest that PCA may be used to produce quality of care indicators. Furthermore, the relationship between the costs and quality of care is complex. Better accessibility is reflected in higher costs, whereas the efficient allocation of resources will bring some cost savings.

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    File URL: http://www.vatt.fi/file/vatt_publication_pdf/wp31.pdf
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    Paper provided by Government Institute for Economic Research Finland (VATT) in its series Working Papers with number 31.

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    Date of creation: 28 May 2012
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    Handle: RePEc:fer:wpaper:31
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    1. Mark McClellan & Douglas Staiger, 1999. "The Quality of Health Care Providers," NBER Working Papers 7327, National Bureau of Economic Research, Inc.
    2. Lee, Hanjoon & Delene, Linda M. & Bunda, Mary Anne & Kim, Chankon, 2000. "Methods of Measuring Health-Care Service Quality," Journal of Business Research, Elsevier, vol. 48(3), pages 233-246, June.
    3. Wray, Nelda P. & Ashton, Carol M. & Kuykendall, David H. & Hollingsworth, John C., 1995. "Using administrative databases to evaluate the quality of medical care: A conceptual framework," Social Science & Medicine, Elsevier, vol. 40(12), pages 1707-1715, June.
    4. Jushan Bai & Serena Ng, 2000. "Determining the Number of Factors in Approximate Factor Models," Econometric Society World Congress 2000 Contributed Papers 1504, Econometric Society.
    5. Sloan, Frank A. & Picone, Gabriel A. & TaylorJr., Donald H. & Chou, Shin-Yi, 2001. "Hospital ownership and cost and quality of care: is there a dime's worth of difference?," Journal of Health Economics, Elsevier, vol. 20(1), pages 1-21, January.
    6. Casparie, Anton F. & M. Sluijs, Emmy & Wagner, Cordula & de Bakker, Dinny H., 1997. "Quality systems in Dutch health care institutions," Health Policy, Elsevier, vol. 42(3), pages 255-267, December.
    7. Sally C. Stearns & Edward C. Norton, 2004. "Time to include time to death? The future of health care expenditure predictions," Health Economics, John Wiley & Sons, Ltd., vol. 13(4), pages 315-327.
    8. Meena Seshamani & Alastair Gray, 2004. "Ageing and health-care expenditure: the red herring argument revisited," Health Economics, John Wiley & Sons, Ltd., vol. 13(4), pages 303-314.
    9. Ronald Lee, 2003. "The Demographic Transition: Three Centuries of Fundamental Change," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 167-190, Fall.
    10. Willi Leibfritz & Deborah Roseveare & Douglas Fore & Eckhard Wurzel, 1995. "Ageing Populations, Pension Systems and Government Budgets: How Do They Affect Saving?," OECD Economics Department Working Papers 156, OECD Publishing.
    11. Gertler, Paul J & Waldman, Donald M, 1992. "Quality-Adjusted Cost Functions and Policy Evaluation in the Nursing Home Industry," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1232-56, December.
    12. Newhouse, Joseph P, 1987. "Health Economics and Econometrics," American Economic Review, American Economic Association, vol. 77(2), pages 269-74, May.
    13. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February.
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