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Centralized or decentralized? A case study of Norwegian hospital reform

Author

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  • Magnussen, Jon

    (Department of Public Health and General Practice, NTNU and Health Organization Research Program Norway (HORN))

  • Hagen, Terje P.

    (Institute of Health Management and Health Economics, University of Oslo and Health Organization Research Program Norway (HORN))

  • Kaarbøe, Oddvar M.

    (Health Economics Bergen (HEB), University of Bergen, Department of Economics)

Abstract

In recent years, decentralization of financial and political power has been perceived as a useful means to improve outcomes of the health care sector. Such reforms are often a result of fashion, rather than being based on knowledge of “what works”. If decentralization is the favored strategy in health care, studies of countries that go against the current trend will be of interest and importance as they provide information about the potential drawbacks of decentralization. In Norway, specialized health care has recently been recentralized. In this paper, we review some of the evidence now available on its economic effects. The most striking observation is that recentralization did not affect the variables related to cost containment and soft budgeting.

Suggested Citation

  • Magnussen, Jon & Hagen, Terje P. & Kaarbøe, Oddvar M., 2006. "Centralized or decentralized? A case study of Norwegian hospital reform," Working Papers in Economics 02/06, University of Bergen, Department of Economics.
    • Handle: RePEc:hhs:bergec:2006_002
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    References listed on IDEAS

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    More about this item

    Keywords

    Health care system; decentralization; recentralization; Norway.;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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