Publicly funded hospital care: expenditure growth and its determinants

Nigel Rice and María José Aragón
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María José Aragón: Centre for Health Economics, University of York, UK

No 177cherp, Working Papers from Centre for Health Economics, University of York

Abstract: Understanding the drivers of growth in health care expenditure is crucial for forecasting future health care requirements and for the efficient use of resources. We consider total hospital admitted care expenditure in England between 2009/10 and 2016/17. Decomposition techniques are used to separate changes in expenditure into elements due to changes in the distribution of characteristics, of both individuals and the services they receive, and due to changes in the impact of characteristics on expenditures. Growth in aggregate expenditure was due to increases in total patient admissions together with a substantial shift towards episodes of non-elective care, particularly the use of long-stay care. Decomposition of patient level expenditure suggests efficiency gains in treatment across the full distribution of expenditures, but that these were outweighed by structural changes towards a greater proportion of patients presenting with high-dimensional comorbidities. This is particularly relevant at the top end of the expenditure distribution and accounts for a large proportion of the total expenditure growth.

Keywords: Health Care Expenditure Growth; decompositions; Hospital Episode Statistics (search for similar items in EconPapers)
JEL-codes: C1 I1 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2021-01
New Economics Papers: this item is included in nep-eur and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:chy:respap:177cherp

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