Does waiting times decrease or increase operational costs in short and long-term? Evidence from Portuguese public...

Area of Science:

• Health Economics
• Public Health Policy
• Healthcare Management

Background:

• Rising healthcare expenditure in Portugal's National Health System creates uncertainty in public business hospital operating costs.
• Understanding the drivers of these costs is crucial for efficient healthcare delivery.

Purpose of the Study:

• To investigate the relationship between operational costs and waiting times for external consultations and surgeries.
• To examine the link between healthcare professional costs and waiting times.
• To empirically assess potential U-shaped behavior in these relationships.

Main Methods:

• Analysis of data from 38 hospitals within the Portuguese National Health System (2015-2019).
• Inclusion of five groups of public business hospitals based on administrative classifications.
• Application of the Autoregressive Distributed Lag (ARDL) panel model for relationship validation.

Main Results:

• Extended waiting times for external consultations and surgeries are significantly associated with increased hospital costs.
• The impact of waiting times on costs extends beyond immediate effects like increased absence rates.
• Evidence suggests long-term financial consequences stemming from prolonged waiting periods.

Conclusions:

• Healthcare waiting times are a significant determinant of operational costs in Portuguese public hospitals.
• Policy interventions aimed at reducing waiting times could lead to substantial cost savings.
• The long-term financial implications of waiting times necessitate strategic planning within the national health system.