OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
Balancing Health Care Quality and Cost Containment
The Case of Norway
In recent years, a series of wide-ranging reforms designed to make greater use of market mechanisms has
succeeded in eliminating shortages, raising efficiency and improving citizen satisfaction. Nevertheless, spending
accelerated after the reforms, and per capita spending on health is now one of the highest in the OECD.
Centralisation of hospital ownership may have increased political influence, encouraging spending that cannot
be justified on cost-benefit grounds. Co-payments by patients are modest, and the background of swelling oil
wealth may have sapped willingness to control costs. Diagnosis related group (DRG) procedures are arguably
too well-remunerated in some areas, leading to supply-driven interventions, while their absence in others (e.g.
psychiatry) may have resulted in sub-optimal supply. Generalist doctors have a gatekeeper role, but are said to
over-refer patients to hospitals. Although cost controlling mechanisms exist in Norway, they are too often
sidestepped by pressure by citizens on politicians to approve new drugs and treatments. Thus, future health
reforms in Norway should concentrate on value for money.
This paper relates to the 2005 OECD Economic Survey of Norway (www.oecd.org/eco/survey/norway).
Keywords: health care reforms, long-term care, health care human resources, hospital, Norway, specialised care, activity based financing, pharmaceuticals, primary care
JEL:
I18: Health, Education, and Welfare / Health / Health: Government Policy; Regulation; Public Health;
I10: Health, Education, and Welfare / Health / Health: General;
I11: Health, Education, and Welfare / Health / Analysis of Health Care Markets
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