Does the Type of Healthcare Financing Systems Matter for Efficiency?

Abstract

This article aims to identify whether the type of healthcare system financing matters in terms of efficiency. The study covered 35 OECD countries, which follow either the Bismarck system or the Beveridge system. The span of analysis covers the year 2015. Data were derived from OECD statistics and Eurostat databases. In purpose to analyse the impact of the financing method on the overall efficiency of the healthcare system, the developed model of Anderson was employed. Thus, the model allowed us to examine both—the components of the healthcare system, resources, population characteristics, benefits and outcomes, and the relationship of individual components to each other, expressed through efficiency, effectiveness and equality. In addition, statistical methods were used such as descriptive analysis, the independent sample t-test and the Pearson correlation coefficient. It was found that countries of the Bismarck system possess more hospital beds and simultaneously more curative care bed days are provided. It could imply the existence of a supply-induced demand problem. In the case of efficiency, the Bismarck states were found to have a more efficient medical doctor as they provide more consultation per inhabitant than their Beveridge counterparts. However, the Beveridge states were found to have more efficient usage of curative care beds as their bed occupancy rate is higher than Bismarck counterparts.