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Public or Private? Which Source of Financing Helps to Achieve Higher Health System Efficiency?

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Contemporary Trends and Challenges in Finance

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

Abstract

In this study, we analyze the relationship between health care system’s financing and health system’s efficiency. We pose the following research hypotheses: (H1) system with higher ratio of public financing should achieve higher efficiency; (H2) public financing increases system efficiency for hospitals and lowers for outpatient care. We find that private financing in stationary care can lead to negative externalities, while private financing in the case of ambulatory care helps to achieve better elasticity and adjustments to the system and patients’ needs. In order to prove these assumptions we analyze data for 21 European OECD countries (in the years 2000–2015) which describe population’s health status representing life expectancy (LE) and the structure of financing (public versus private spending).

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Author information

Authors and Affiliations

  1. Faculty of Economic Sciences, Wrocław University of Economics, Wrocław, Poland

    Paweł Prędkiewicz

  2. Faculty of Management, Informatics and Finance, Wrocław University of Economics, Wrocław, Poland

    Agnieszka Bem & Rafał Siedlecki

  3. Faculty of Philology and History, Jan Dlugosz University in Czestochowa, Częstochowa, Poland

    Paulina Ucieklak-Jeż

Authors
  1. Paweł Prędkiewicz
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  2. Agnieszka Bem
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  3. Paulina Ucieklak-Jeż
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  4. Rafał Siedlecki
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Corresponding author

Correspondence to Paweł Prędkiewicz .

Editor information

Editors and Affiliations

  1. Finance Management Institute, Wroclaw University of Economics, Wroclaw, Poland

    Krzysztof Jajuga

  2. Faculty of Management and Economics, Dresden University of Technology, Dresden, Germany

    Hermann Locarek-Junge

  3. Jack Welch College of Business, Sacred Heart University, Fairfield, CT, USA

    Lucjan T. Orłowski

  4. Department of Economics and Finance, Tallinn University of Technology, Tallinn, Estonia

    Karsten Staehr

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Prędkiewicz, P., Bem, A., Ucieklak-Jeż, P., Siedlecki, R. (2019). Public or Private? Which Source of Financing Helps to Achieve Higher Health System Efficiency?. In: Jajuga, K., Locarek-Junge, H., Orłowski, L., Staehr, K. (eds) Contemporary Trends and Challenges in Finance. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-15581-0_18

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