The 2004 edition of the European Competitiveness Report has a key theme of the role of government policies in influencing competitiveness with specific reference to efficiency concerns in healthcare provision.
The health sector’s output is about 7 per cent of EU-15 GDP and, consequently, its efficiency is ultimately reflected in the aggregate productivity data. Current healthcare systems in the EU countries are characterized by diversity in both the funding and delivery of healthcare. The rise in expenditures in health care provision calls for new ways to raise the efficiency of the sector. A principal challenge for healthcare reforms is the reconciliation of the objectives of higher efficiency, securing the benefits of improved technology, and ensuring fair access for all citizens.
Although there is a general recognition that providing greater incentives may enhance efficiency, experiences of the US health care sector are not supportive of unfettered competition and deregulation. In particular when equity issues are taken into consideration, the weaknesses of the US health care sector become apparent.
