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Reimbursement policy of hospitals in the Federal Republic of Germany.

The factors that have contributed to an overhaul of German hospital policy in the last 12 months are both numerous and highly interrelated. Rising health expenditures and inflexible mechanisms for implementing hospital policy are major culprits, as are the considerably changed political and economic circumstances over the last 15 years. Although this overhaul does embody some changes in the direction of German health care policy, they can best be understood as a further manifestation of the continuity that has characterized policy in this area for the past 100 years; a continuity rooted in the widely shared belief that disease, whatever its nature, is beyond the control of individuals. The key to cost containment is considered to lie in the reduction of the average length of stay and in the better utilization of hospital facilities. Payment remains directly related neither to specific diagnoses of individual patients nor to occupancy rates in individual departments, which vary greatly across disciplines and specialities. In the era that is unfolding, one political phenomenon requires close watching in the future: policy coalitions at the Land-level will become even more important as prime movers than they have been in the past. Demands for Strukturreform are a regular feature of many governmental systems. Yet the capacity of political bodies--whether ministries or parliaments--is severely limited by the distribution of power and control over resources and by the political dynamics which they generate. In the FRG, major reforms will not take place until after the 1987 federal elections, and it is essential to remember that the realms of campaign rhetoric and of policy choice and implementation are governed by entirely different sets of rules and constraints.

Financial Management↗

[The report of the Commission on Macroeconomics and Health: its relevance to the countries of Latin America and the Caribbean].

The Commission on Macroeconomics and Health (CMH) was established by the Director-General of the World Health Organization (WHO) to evaluate the role of health in economic development. On 20 December 2001 the CMH submitted its report to the WHO Director-General. Entitled Macroeconomics and Health: Investing in Health for Economic Development, the CMH report affirms that in order to reduce poverty; and achieve economic development, it is essential to improve the health of the poor; to accomplish this, it is necessary to expand the access that the poor have to essential health services. The Commission believes that more financial resources are needed, that the health expenditures of less-developed and low-income countries are insufficient for the challenges that these countries face, and that high-income countries must increase their financial assistance in order to help solve the main health problems of less-developed and low-income countries. This piece summarizes a report that was prepared by the Program on Public Policy and Health of the Division of Health and Human Development of the Pan American Health Organization (PAHO). The PAHO document analyzes the importance of the CMH report for the countries of Latin America and the Caribbean, focusing on some of the central arguments put forth in the CMH report as they relate to achieving better health conditions in the Americas. These arguments have been organized around three major themes in the CMH report: a) the relationships between health and economic growth, b) the principal health problems that affect the poor in low-income and low-middle-income#10; countries, and c) the gap between the funding needed to address the principal problems that affect these countries and the actual spending levels. #10;

Delivery of Health Care↗

[The modern treatment of myocardial infarction by coronary reperfusion: impact on the organization of care].

The new treatment of myocardial infarction in the acute phase is effective if it is applied as early as possible after the onset of ischemia. The concept of extreme emergency implies a change in the overall management of the patients, a reorganization of medical care and major increase in expenditures. Price disparities of thrombolytic agents and variability in complementary reperfusion therapies have a impact on hospital cost of thrombolysis. While individual patients unquestionably benefit from this new methods, further studies are needed to evaluate the increase in health expenditures involved and the economic repercussions of avoidance or limitation of myocardial infarctions.

Myocardial Infarction↗

Managed competition using both market-driven and regulatory strategies.

The market-driven managed competition concept has been successful in reducing increases in healthcare costs by controlling utilization and price, but has failed to date to produce an effective and efficient delivery of health services. The proposed health reform plan calls for universal access (excluding illegal aliens), a relatively broad range of clinically effective basic benefits, an option to purchase supplementary benefits, a ceiling placed on the nation's total health expenditures, local decisionmakers allocating available resources, existing insurers administering the plan and providing consumers with additional quality of care comparisons.

Cost Control↗

A comparison of prescribing patterns and consequent costs at Alexandra Health Centre and in the private fee-for-service medical aid sector.

About 25% of private health expenditure in South Africa goes on medicines. This compares with about 6% in the public sector, and about 12% in the UK. A major factor contributing to these differences is the prescribing practices of physicians, and generic prescribing in particular. This is a preliminary study to assess the savings that might be possible by altering prescribing practices. A sample of 528 scripts from Alexandra Health Centre (AHC) was analysed to calculate the average number of items per script and the average cost per script. In order to make the costs comparable to expenditure on medicines in the private fee-for-service sector, the scripts from AHC were costed as if they had been dispensed by private pharmacies--including dispensing fees, packaging costs and general sales tax. Since AHC clinicians generally prescribe medicines in the prepacked quantities, nothing is added to the costs for 'broken bulk'. However, as is the practice at AHC, cheaper therapeutic equivalents were substituted wherever possible. The number of items per script in the fee-for-service sector was 17% higher than at AHC, and the cost per item at AHC was one-quarter that in the private sector. Various explanations are offered including the possible incomparability of the case mix in the two sectors and the relative quality of care. However, the difference is so large that it is concluded that generic substitution, prepackaging and the use of treatment protocols by the clinicians are the major contributing factors.

Costs and Cost Analysis↗

Where in the world are the ambulatory benchmarking data?

If you haven't already been forced to take a hard look at your ambulatory care, increasing payer and patient pressures mean you'll have to soon. Ambulatory care accounts for more than half of U.S. health expenditures and could account for half of average hospital revenue by the year 2000. The most difficult data to find is on physician offices but several proprietary databases offer that information, and a new project from the Accreditation Association for Ambulatory Health Care will focus on collecting it. Some free data are available from state and federal sources, but are not very current, not adjusted in any way, and may take you a while to receive.

Ambulatory Care↗

Health status and medical expenditures: is there a link?

Until now, cross-national studies have not demonstrated a positive relationship between health care expenditures and improved health status, as measured by such indicators as age-adjusted mortality rates. It has therefore been argued that cutting expenditures will not have a negative effect upon health status. Using health and life-style data from the OECD for Germany, the United Kingdom, The Netherlands, France, Sweden and the United States, this study finds that when one holds constant those changes in life style that have an impact upon health (e.g. smoking, drinking, traffic accidents, dangers on the job) and adjusts for inflation and population size, health care expenditures do bear a positive relationship to health status. This suggests that reductions in health care expenditures may well have some cost in terms of overall health.

Aged↗

Challenges in developing paediatric surgery in Sub-Saharan Africa.

The aim of the present study is to report on the difficulties in developing paediatric surgery in a teaching hospital in Tanzania. The methods are as follows: (1) information on the demography and health services of Tanzania were obtained from the Ministry of Health and the 1998 consensus report; (2) hospital data was obtained from the Medical Director's Office and analysed; (3) the current delivery of surgical services for children at the Tumaini University Hospital and Kilimanjaro Christian Medical Centre (KCMC) is reported; (4) the local, national and international support for the development of surgical services for children is noted; (5) the teaching, training and research programmes are proposed. The results showed that (1) Tanzania has a population of 31 million with a total health expenditure of 10%. There is 1 doctor for 23,000 inhabitants and 1 hospital bed per 940. The infant mortality is 173 per thousand life births. (2) The bed capacity at KCMC is 500 with a staff of 40 consultants, 294 nurses, 246 health attendants and 38 clinical officers. (3) Forty-two percent of admissions to the surgical ward and 50% of surgical outpatients are children. Surgical newborns are cared for in the special care baby unit and there are no neonatal or paediatric ventilators. (4) Support to develop surgical services for children has been pledged for locally, nationally and internationally; however, delivery of the service has not had the equivalent momentum. (5) The proposed teaching and training programme has been approved by the University. There is a need for surgical services for children with encouraging support for this venture; however, the challenges remain in delivering the service.

Child↗

[Equity in socioeconomic areas with impact on health in countries of European Union].

It may sometimes be more appropriate to correct inequalities in the domains of education, lifestyles, or nutrition than that of health. The current study proposes to measure existing inequalities in European Union member countries in socioeconomic areas with an impact on the population's health. The Gini coefficient was used to quantify inequalities among member countries with regard to education and cultural activities, lifestyles, nutrition, unemployment, use of health care services, and health expenditures. The indicators with the highest Gini coefficients are the percentage of the population with a secondary school education (level of schooling just preceding the university), per capita butter consumption, and per capita consumption of packaging for medications. It is cause for concern to the health sector that education displays such great inequality in the percentage of individuals enrolled in secondary education within the European Union. Existing inequality in per capita butter consumption is equally important due to the impact nutrition has on the incidence of cardiovascular and cerebral vascular diseases, for example, and the weight these diseases have on the mortality profile.

Diet↗

Health and education expenditure in the United Kingdom: what priority?

Public expenditure on goods and services per head of population on the National Health Service (NHS) in the United Kingdom has risen less rapidly than some other forms of public expenditure such as education. Revenue expenditure at 1970 market prices on goods and services in the NHS per head of population rose by 38% during the period 1951 to 1968. During the same time interval, expenditure at 1970 market prices on goods and services in education per head of population rose by 84%. Health, as measured by standardised mortality ratios (SMRs), improved over a similar period. This paper argues that, in the long term, the priority given to education expenditure may not necessarily be detrimental to further improvements in community health.

Cost-Benefit Analysis↗

Cost-effectiveness in Italy of preventive treatment with ramipril in patients at high risk of cardiovascular events.

OBJECTIVES: A cost-effectiveness analysis was conducted in Italy of preventive treatment with ramipril (an angiotensin converting enzyme [ACE] inhibitor) compared to no treatment in patients at high risk of cardiovascular death. The analysis was based on data extracted from the HOPE trial. METHODS: The current life table method was used in order to model a lifetime time horizon for outcomes and costs. The cohorts used were 1000 subjects on ramipril, and 1000 subjects on placebo enrolled in the HOPE trial. Kaplan-Meier curves at 5 years of the clinical study were fitted using an exponential model over a lifetime horizon, the outcome variables being myocardial infarction, stroke, revascularization and death. Total direct medical costs have been considered from a third-party payer's perspective--the Italian National Health Service. Resources involved in each event/activity were estimated using the modified Delphi technique with a panel of six clinicians. Types of resources reported included drug therapies, laboratory and imaging tests, physician visits, outpatient and inpatient rehabilitation, as well as medical and surgical hospital admissions. The incremental cost per life year gained was the main measure of the analysis. RESULTS: ICER (incremental cost-effectiveness ratio) decreases with the length of the treatment period. After the first year the ICER is 55,062 euros and subsequently decreases to about 12,770 euros at 5 years, 5945 euros at 10 years and 3726 euros at 20 years. The two ways sensitivity analysis showed that at 5 years ICERs range from a saving of 4059 euros to a cost of 22,929 euros (at 20 years they are 1814 euros and 4434 euros), mainly depending on the cost of drug and cost of events. Previous analyses in other countries based on the HOPE study obtained ICER values which are comparable with our results, when taking into account the different cost structure of the health care systems. CONCLUSIONS: On the basis of these results, the use of ramipril is likely to represent an efficient use of public health expenditure in the Italian healthcare system.

Angiotensin-Converting Enzyme Inhibitors↗

The interdependence of mental health service systems: the effects of VA mental health funding on veterans' use of state mental health inpatient facilities.

BACKGROUND: There are relatively few published data on how the financial structures of different health systems affect each other. With increasing financial restrictions in both public and private healthcare systems, it is important to understand how changes in one system (e.g. VA mental healthcare) affect utilization of other systems (e.g. state hospitals). AIMS OF THE STUDY: This study utilizes data from state hospitals in eight states to examine the relationship of VA per capita mental health funding and state per capita mental health expenditures to veterans' use of state hospitals, adjusting for other determinants of utilization. METHODS: This study utilized a large database that included records from all male inpatient admissions to state hospitals between 1984 and 1989 in eight states (n = 152541). Funding levels for state hospitals and VA mental health systems were examined as alternative enabling factors for veterans' use of state hospital care. Logistic regression models were adjusted for other determinants of utilization such as socio-economic status, diagnosis, travel distances to VA and non-VA facilities and the proportion of veterans in the population. RESULTS: The single strongest predictor of whether a state hospital patient would be a veteran was the level of VA mental healthcare funding (OR = 0.81 per $10 of funding per veteran in the population, p = 0.0001), with higher VA funding associated with less use of state hospitals by veterans. Higher per capita state funding, reciprocally, increased veterans' use of state hospitals. We also calculated elasticities for state hospital use with respect to VA mental healthcare funding and with respect to state hospital per capita funding. A 50% increase in VA per capita mental health spending was associated with a 30% decrease in veterans' use of state hospitals (elasticity of -0.6). Conversely, a 50% increase in state hospital per capita funding was associated with only an 11% increase in veterans' use of state hospitals (elasticity of 0.06). IMPLICATIONS FOR HEALTH CARE PROVISION AND USE: These data indicate that per capita funding for state hospitals and VA mental health systems exerts a significant influence on service use, apparently mediated by the effect on supply of mental health services. Veterans are likely to substitute state hospital care for VA care when funding restrictions limit the availability of VA mental health services. However, due to the relative sizes of the two systems, VA funding has a larger effect than state hospital funding upon state hospital use by veterans. IMPLICATIONS FOR HEALTH POLICIES: These data indicate that changes in the organizational and/or financial structure of any given healthcare system have the potential to affect surrounding systems, possibly quite substantially. Policy makers should take this into account when making decisions, instead of approaching systems as independent, as has been traditional. IMPLICATIONS FOR FURTHER RESEARCH: Further research is needed in two areas. First, these results should be replicated in other systems of care using more recent data. Second, these results are difficult to generalize to individual behavior. Future research should examine the extent and individual determinants of cross-system use.

Journal Article↗

[Increasing life expectancy--the big social issue of the 21st century?].

Due to the combined effects of a persistent low birth rate, the forthcoming retirement of the "baby-boom generation" and an increasing life expectancy, the German system of "social security" will face severe challenges in the coming decades. The foreseeable doubling of the ratio between pensioners and employees by 2050 would cause a strong increase in social security contributions and taxes for the "pay-as-you-go"-financed pension system. In addition, the expected tripling of highly aged people would increase the public expenditures for health care and nursing care of elder people, which also have to be financed by the future working generations. In order to lessen the increasing burden on future generations, social reforms are necessary soon. If these are not performed, the distributional conflict between young and old people could become worse over the forthcoming decades.

Aged↗

Budget-holding: the answer to Australian primary care reform?

In common with other Organisation for Economic Cooperation and Development (OECD) countries, Australia is experiencing growth in expenditure on health care. However, while many other nations continue to pursue some variation of managed competition to address these problems, Australia has chosen a more incremental reform path, with initiatives such as the General Practice Strategy, restrictions in doctor supply and coordinated care trials. This article reviews the likely effectiveness of such initiatives in the light of experience and evidence of budget-holding in achieving similar objectives overseas. It concludes that budget-holding offers a more effective strategy than current 'piecemeal' reforms to contain costs and increase efficiency within Australian health care.

Australia↗