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The Impact of Health Expenditure to the Healthcare System Efficiency

Maria Grausova, Miroslav Huzvar, Jana Strangfeldova

Maria Grausova 1 

Miroslav Huzvar 1 Jana Strangfeldova 3

  1. Professor Assistant Faculty of Economics, Matej Bel University Banská Bystrica, Slovakia 1

  2. Professor Assistant Faculty of Economics, Matej Bel University Banska Bystrica, Slovakia 3


Abstract:

Health is the most precious human value. It contributes to the economic potential of the country and therefore requires the interest of both the state and the public authorities. How can countries really influence the health of their inhabitants? No doubt, appropriate number of hospital beds and practising physicians are important. But what else does matter? Health expenditure has a significant role in national economies. We examine healthcare systems efficiency in 27 European countries using Data Envelopment Analysis (DEA). Then we compare the impact of health expenditure per capita and the health expenditure share of GDP to the efficiency scores of compared countries. We show that the share may be preferable to use in DEA calculations, because it takes into account the "country’s wealth".

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