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The health policy pendulum: Cost control vs activity growth
1Department of Health Management and Health Economics, University of Oslo, Oslo, Norway.
Cost control has driven Norwegian hospital reforms, leading to successful cost containment. However, this often results in longer waiting lists, prompting new policies to increase healthcare activity.
Area of Science:
- Health economics
- Healthcare policy
- Hospital management
Background:
- Cost containment is a significant policy challenge and a primary driver of healthcare reform.
- This study examines the influence of cost control on Norwegian hospital sector reforms from 1980 to 2014.
Purpose of the Study:
- To analyze the role of cost control as a reform driver in the Norwegian hospital sector.
- To identify the impact of cost control policies on healthcare activity and patient satisfaction.
Main Methods:
- Analysis of aggregate expenditure data and year-to-year activity changes.
- Utilization of qualitative data for illustrative purposes to support quantitative findings.
Main Results:
- Four distinct phases identified between 1980 and 2014, alternating between prioritizing activity increases and cost control.
- Both increased activity and improved cost control have been significant drivers of reform initiatives.
Conclusions:
- Cost control has been a major motivator for reforms, with some policies achieving success.
- Achieving cost control can lead to increased waiting lists and public dissatisfaction, necessitating new policies to boost healthcare activity.
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