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International Health Comparisons A compendium of published information on healthcare systems, the provision of healthcare and health achievement in 10 countries

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International Health ComparisonsA compendium of published information on healthcare systems,the provision of healthcare and health achievement in 10 countries

A compendium of published information on healthcare systems,the provision of healthcare and health achievement in 10 countries

International Health Comparisons

The National Audit Office team consisted of:

Ashley McDougall, Paul Duckett and ManjeetManku under the direction of James Robertson.

For further information about the National Audit Officeplease contact:

National Audit OfficePress Office157-197 Buckingham Palace RoadVictoriaLondonSW1W 9SP

Tel: 020 7798 7400

Email: [email protected]

ContentsPart 1

Making comparisons 1

Introduction 1

Scope and structure of the report 1

Basis of the compendium 1

Difficulties in interpreting the information 1

Part 2

Healthcare systems 3

Expenditure on health 3

Financing arrangements in different countries 4

Part 3

Providing healthcare 9

Health personnel 9

Medical infrastructure 14

Medicines and drugs 14

Medical procedures carried out 14

Preventative medical programmes 14

Part 4

Health achievements 17

Life expectancy 17

Infant and perinatal mortality 17

Main causes of death 19

Health outcomes 21

Performance of healthcare systems 21

Appendices

1. Healthcare delivery systems 28

Australia 28

Canada 30

England 32

France 34

Germany 36

Italy 38

Japan 40

New Zealand 42

Sweden 44

United States 46

2. Death rates from the main cancers over time 48

INTERNATIONAL HEALTH COMPARISONS

Figure 1: Definitions of 'disability' used in 2calculating disability adjusted life expectancy

Figure 2: National expenditure on health as a 3percentage of Gross Domestic Product (GDP)in recent years

Figure 3: Health expenditure as a percentage 5of GDP, 1980 to 2001

Figure 4: Health expenditure per head 5

Figure 5: Sources of health expenditure 6

Figure 6: The methods of financing healthcare 7

Figure 7: Number of practising physicians 9

Figure 8: Level of practising physicians, 10 1980 to 2000

Figure 9: Number of practising nurses 11

Figure 10: Acute hospital admissions 11

Figure 11: Practising nurses per 1,000 acute admissions 12

Figure 12: Practising nurses per acute bed day 12

Figure 13: Number of acute hospital beds 13per 1,000 of population

Figure 14: Bed occupancy for acute beds 13

Figure 15: Availability of Magnetic Resonance 14Imaging units

Figure 16: Public expenditure on pharmaceuticals 15and other medical non-durables prescribed for out-patients

Figure 17: Coronary bypass procedures per 100,000 15of population

Figure 18: Percentage of children immunised 16against measles

Figure 19: Percentage of children immunised against 16diphtheria, tetanus and pertussis (whooping cough)

Figure 20: Life expectancy at birth 18

Figure 21: Potential years of life lost 18

Figure 22: Perinatal mortality, 1980 to 2000 19

Figure 23: Infant mortality, 1980 to 2000 20

Figure 24: Main causes of death 21

Figure 25: Deaths from cancer, 1980 to 1999 22

Figure 26: Latest known mortality for all cancers 22

Figure 27: Main cancer killers with death rates 23

Figure 28: Deaths from lung cancer 23

Figure 29: Deaths from breast cancer 24

Figure 30: Deaths from main circulatory diseases 24

Figure 31: Deaths from ischaemic heart 25disease, 1980 to 1999

Figure 32: Five-year survival rates for lung cancer 25

Figure 33: Five-year survival rates for breast cancer 26

Figure 34: Five-year survival rates for cancer of 26the colon

Figure 35: Five-year survival rates for prostate cancer 27

Figure 36: Average length of stay for acute care 27

Appendix 1

Figure 1.1 Financing of healthcare in Australia, 1999 29

Figure 1.2: Financing of healthcare in Canada, 1999 31

Figure 1.3: Financing of healthcare in England, 1999 33

Figure 1.4: Financing of healthcare in France, 1999 35

Figure 1.5: Financing of healthcare in Germany, 1995 37(Values in Billion DM)

Figure 1.6: Financing of healthcare in Italy, early 1990s 39

Figure 1.7: Financing of healthcare in Japan, early 2000 41

Figure 1.8: Financing of healthcare in New Zealand, 1998 43

Figure 1.9: Financing of healthcare in Sweden, 1999 45

Figure 1.10: Financing of healthcare in the United States, 47early 1990s

Appendix 2

Figure 2.1: Deaths from cervical cancer, 1980 to 1999 48

Figure 2.2: Deaths from breast cancer, 1980 to 1999 49

Figure 2.3: Deaths from prostate cancer, 1980 to 1999 50

Figure 2.4: Deaths from lung cancer, 1980 to 1999 50

Figure Guide

INTERNATIONAL HEALTH COMPARISONS

Part 1

INTERNATIONAL HEALTH COMPARISONS

Making comparisons

1

part

one

Introduction1.1 Members of the Committee of Public Accounts have

expressed interest in comparative material onhealthcare in other countries. This compendium ofinformation has been compiled from published sourcesby the National Audit Office and is provided forbackground information. A copy has been placed in thelibrary of the House of Commons.

Scope and structure of thecompendium1.2 This compendium sets out comparative data on

healthcare systems and health in 10 countries, selectedas broadly comparable industrialised nations(specifically, the G7 countries1), or as those innovativecountries frequently included in comparisons (Australia,New Zealand and Sweden).

1.3 The structure of the compendium is as follows:

! Part 1: Making comparisons;

! Part 2: Healthcare systems;

! Part 3: Providing healthcare; and

! Part 4: Health achievements.

1.4 In addition, two appendices set out more detail onhealthcare delivery systems (Appendix 1) and deathrates from the main cancers over time (Appendix 2).

Basis of the report

1.5 The report draws exclusively on published information,principally the most recent data for 2002 from the Organisation for Economic Co-operation andDevelopment (OECD)2. Other sources of data include the

World Health Organization3, the two reports prepared forthe Chancellor of the Exchequer by Derek Wanless in2001 and 20024, together with the supporting reportcommissioned by HM Treasury from the EuropeanObservatory5, work by The Commonwealth Fund6, andthe EUROCARE-2 and National Cancer Institute studieson cancer survival rates7.

1.6 Analysis of the data has been confined to setting out thecomparisons in tabular and graphical form to showrelative positions at a certain date, and the direction oftravel, together with brief textual explanations andhighlighting of key differences. The compendium doesnot examine the causes of differences betweencountries or draw conclusions on policy issues such aswhich methods of financing healthcare are best. TheDepartment of Health has seen the compendium, andhas noted that the inconsistencies and incompatibilitiesbetween data sources in different countries mean thatvalid comparisons cannot be made on the basis of thesefigures alone.

Difficulties in interpreting the information

Lack of comparability and completeness ofthe data

1.7 The OECD data used extensively in this compendium arecollected by countries primarily for their own purposesand methods, timing and definitions vary, see Figure 1 forexample. In addition, available information indicates thatvalidation procedures vary between countries. In somecountries, for example, data are based on surveys of self-reporting individuals. The report notes when a comparisonis likely to be particularly prone to such problems, butinevitably a margin of uncertainty remains within the dataas presented.

1 Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.2 OECD Health Data 2002.3 World Health Report 2000: Health systems: improving performance, World Health Organization, 2000.4 Securing Our Future Health: Taking a Long-Term View, Interim report, November 2001, Final report, April 2002.5 Health care systems in eight countries: trends and challenges, European Observatory on Health Care Systems, April 2002.6 Multinational comparisons of health systems data, Anderson G.F. and Hussey P.S., The Commonwealth Fund, 2000.7 Survival of cancer patients in Europe: the EUROCARE-2 Study, 1999, SEER Cancer Statistics Review 1973-1999, National Cancer Institute, 2002.

2

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INTERNATIONAL HEALTH COMPARISONS

1.8 A further difficulty is that published data are morecomplete on some issues of interest than others. Thisinevitably means that only a partial picture can bedrawn for some topics.

The nature of healthcare systems impacts onmeasured indicators

1.9 Differences between countries measured by anyparticular indicator may reflect the way that healthcaresystems are organised or demographic factors. They donot necessarily imply that healthcare received bypatients is better or worse. For example, generalpractitioners in the United Kingdom act as gatekeepers

for secondary (hospital) care. As a result there are fewerin-patient admissions per 1,000 of the population thanin a country such as France, which has no suchgatekeeper function. A country where older peoplemake up a smaller proportion of the population thanaverage might be expected to have lower expenditureper head on healthcare for example. The compendiumflags up such problems where applicable.

There are uncertain relationships betweencause and effect and the impact of policychanges may not yet be apparent

1.10 Complex relationships between cause and effect meanthat it is not straightforward to identify which elementsshould be changed to achieve desired outcomes. Theindicators may be misleading if used in an uncriticalway to suggest that healthcare could be improved, forexample, by a simple matching against the levels ofindicators in other countries.

1.11 A further consideration in drawing conclusions is thatthe comparisons make no allowance for policy andresourcing changes already in train in this country orelsewhere, aimed at producing improvements, butwhich have not had time to work through. In particular,the Government has allocated an additional £2.4 billionin 2003-04 to improve the NHS in the United Kingdom,with spending growing by 7.4 per cent a year afterinflation over the five years to 2007-08. Health spendingin England will rise by 7.5 per cent a year. Taking intoaccount these new resources, United Kingdom healthspending is expected to rise to 9.4 per cent of GrossDomestic Product (GDP) in 2007-08. Currentcomparisons may not therefore be a reliable guide to thefuture or where intervention is needed to raise standardsof healthcare.

Definitions of 'disability' used in calculating disabilityadjusted life expectancy

1

! Australia takes disability to be one or more of 17 defined conditions.

! Canada takes disability to be limitations in 19 specificactivities lasting at least six months - the last survey was in 1991.

! France includes as disabled all those in retirement homes- the last survey was in 1991-92.

! Germany extrapolates to disability days the results of asurvey asking about disability in the previous four weeks.

! Japan takes disability to be confinement to bed.

! New Zealand takes disability to be as self-reported in theHousehold Disability Survey.

! United Kingdom available data relate to Great Britainhouseholds only, although an adjustment for communalestablishments was made from the 1991 census - disabilityis self-reported as a long-standing limitation on activities inany way.

Source: OECD Health Data 2002

Part 2

3

part

two

2.1 There is a lack of systematic published material on thedetails of how healthcare systems are organised across theworld, though Appendix 1 gives details of healthcaresystems in the 10 comparator countries. Better informationis available on healthcare expenditure and how thisexpenditure is financed, which is set out in this Part.

Expenditure on health2.2 A widely used means of comparison is expenditure as a

proportion of GDP. The OECD data presented here forexpenditure include public and private expenditure, butthere are however definitional and timing differencesthat may distort the statistics.

2.3 For Australia, Canada, France, Germany, Japan, theUnited Kingdom and the United States, reported dataclosely follow the OECD guidelines for reporting healthexpenditure according to a common internationalstandard. Thus the data are believed to be fairlycomparable. For New Zealand the definition ofhealthcare is sufficiently different that its information isof limited comparability. For Italy and Sweden, thedifferences are such that the OECD believes they are notwell suited for international comparisons.

2.4 Figure 2 shows that total healthcare expenditure as aproportion of GDP varied from 7.3 per cent to13 per cent and was 8.9 per cent on average across the10 countries. Total health spending in recent years as apercentage of GDP was lower in the United Kingdom

Part 2 Healthcare systems

National expenditure on health as a percentage of Gross Domestic Product (GDP) in recent years2

Source: OECD Health Data 2002

5.8

7.87.2

6.85.9 6 6.2 6.6

5.7 5.9

7.2 2.52.3

2.5

2.6 2 1.8 1.31.6 1.4

0

2

4

6

8

10

12

14

UnitedStates(2000)

Germany(1998)

France(2000)

Canada(2001)

Australia(1998)

Italy(2001)

NewZealand(2000)

Sweden(1998)

Japan(1999)

UnitedKingdom(2000)

Expe

ndit

ure

as a

per

cent

age

of G

DP 10 country average of 8.9 per cent

The darker tinted bars represent private expenditure. The lighter tinted bars represent public expenditure.

INTERNATIONAL HEALTH COMPARISONS

4

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two

INTERNATIONAL HEALTH COMPARISONS

than in other comparator countries except Japan. TheUnited Kingdom Government has subsequentlyannounced increased spending in the 2002 Budget. TheGovernment estimates that this will increase total spendon healthcare to 9.4 per cent of GDP by 2007-08, upfrom 7.3 per cent in 20008.

2.5 Spending in all countries has increased as a percentage ofGDP over the last 20 years or so, with the exception ofSweden where it has fallen over a number of years. Thetrends are shown in Figure 3. As a result of differing ratesof growth of spending, the spread in percentage GDPspent across the 10 countries has increased from3.5 per cent in 1980 to 5.7 per cent in 2000. The UnitedStates and New Zealand both saw very rapid growth inthe late 1980s.

2.6 Health expenditure per head is an alternative way ofmeasuring the resources devoted to healthcare but issubject to the additional uncertainty of relying on aparticular exchange rate to make the comparisons. Thecaveats to the figures for healthcare as a proportion ofGDP figures apply equally: definitional differences as towhat is included in expenditure, timing differences, andfigures may be affected by demographic factors. Agestandardised spends per head are not available.

2.7 Figure 4 shows the OECD's 2002 estimates based on aUnited States $ exchange rate9. There is a greater thanfour fold variation between the highest and lowest figuresfor health expenditure per head, which range from over$4,600 per year per person in the United States to justover $1,000 in New Zealand. Average expenditure perhead of population is $2,220. The United Kingdom figureis some 86 per cent of the average of $2,028 for the fiveEuropean countries covered (Germany, Sweden, France,the United Kingdom and Italy in descending order ofspend per head).

Financing arrangements in different countries2.8 An important difference between healthcare systems is the

extent to which individuals have private insurance. In theUnited States, private insurance is the only means of coverfor much of the population, whilst in other countries it isheld mainly by high income groups who opt out of socialinsurance coverage. In Canada private insurers aregenerally prevented from offering coverage that duplicatesthat provided by the Government, while in the UnitedKingdom private insurance is held in addition to coverprovided by the Government. In France and New Zealand,private insurance is widely used to cover out of pocketpayments, such as some prescription costs.

2.9 Figure 2 also shows that public spending dominates innine of the comparator countries. Sweden (with publicexpenditure of 84 per cent of total expenditure) and theUnited Kingdom (81 per cent) have the highest publiclyfinanced share of total health spending among thecomparator countries. Public spending is the lowest inthe United States (45 per cent), and private fundingtherefore makes up more than half of total healthexpenditure. It is the only country where this is the case- excluding the United States, privately financedhealthcare accounts for 23 per cent of the total onaverage across the other nine countries.

2.10 The methods of public and private financing varybetween countries, but are usually a combination ofgeneral taxation, social insurance, out of pocketpayments and private insurance. Figure 5 gives a furtherbreakdown of the figures in Figure 2 for the comparatorcountries. The United Kingdom is one of six comparatorcountries (Australia, Canada, Italy, New Zealand,Sweden) in which general taxes are the main source ofpublic funds. France, Germany and Japan finance themajority of health spending through specific socialinsurance contributions. Private insurance is thirdlowest in the United Kingdom, just above Italy andJapan, accounting for just 4 per cent of total funding andhighest in the United States, followed by France. UnitedKingdom out of pocket payments are slightly higher thanin France but lower than in other comparator countries.Out of pocket expenditure is highest in Italy, as aproportion of total spend, followed by Australia and theUnited States.

2.11 Further details of the funding arrangements are given inFigure 6.

8 Budget Report 2002, HM Treasury, Chapter 6.9 The exchange rates have been calculated by the International Monetary Fund. They are par or market rates averaged over the year.

5

part

two

INTERNATIONAL HEALTH COMPARISONS

Health expenditure as a percentage of GDP, 1980 to 20013

Source: OECD Health Data 2002

Australia Canada France Germany ItalyJapan New Zealand Sweden United Kingdom United States

4

5

6

7

8

9

10

11

12

13

14

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Expe

ndit

ure

on h

ealt

hcar

e as

a p

erce

ntag

e of

GD

P

United StatesGermanyFranceCanadaAustraliaItaly

New ZealandJapanUnited Kingdom

Sweden

Health expenditure per head 4

Source: OECD Health Data 2002

4,631

2,696 2,623

1,737 1,6831,492

1,062

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Expe

ndit

ure

per

head

(at

US$

exc

hang

e ra

te)

10 country average of US$2,220

UnitedStates(2000)

Germany(1998)

France(2000)

Canada(2000)

Australia(1998)

Italy(2000)

NewZealand(2000)

Sweden(1998)

Japan(1999)

UnitedKingdom(2000)

2,069 2,0582,146

6

part

two

INTERNATIONAL HEALTH COMPARISONS

Sources of health expenditure5

Source: OECD Health Data 2002

Germany(1998)

France(2000)

Canada(2001)

Australia(1998)

Italy(2001)

NewZealand(2000)

Japan(1999)

UnitedKingdom(2000)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Expe

ndit

ure

as a

per

cent

age

of G

DP

Taxation Social insurance Private insurance

Out of pocket patient costs Other private payments

NOTE

No further recent breakdown of the source of funds is available for Sweden beyond that for public/private expenditure in Figure 2.

UnitedStates(2000)

7

part

two

INTERNATIONAL HEALTH COMPARISONS

The methods of financing healthcare6

Australia

Public finances are raised from a general and compulsory health tax levy on income, through Medicare, the public health insurancesystem. Medicare reimburses 75 per cent of the scheduled fee for private in-patient services and 85 per cent of ambulatory services,including GP consultations.

Out of pocket payments (16 per cent of total health expenditure), are for pharmaceuticals not covered under the Pharmaceutical Benefits Scheme, patient contributions for pharmaceuticals, dental treatment, the gap between the Medicare benefit and the schedule fee charged by physicians, and payments for other services such as physiotherapy and ambulance services, not covered by Medicare.

Private insurance accounts for about 8 per cent of health care expenditure and about 45 per cent of the population have privateinsurance (mostly supplementary). Mainly not-for-profit mutual insurers cover the gap between Medicare benefits and schedule fees forin-patient services. Doctors may bill above the scheduled fee. Private insurers also offer private hospital treatment, choice of specialistsand avoidance of queues for elective surgery.

Canada

National health insurance plans (Medicare) are funded by general and dedicated taxation and cover all medically necessary physicianand hospital services.

The majority of the population has supplementary private insurance coverage through group plans, to include dental care, prescriptiondrugs, rehabilitation services, private care nursing and private rooms in hospitals.

France

Public health finances come from taxes and compulsory social health insurance contributions from employers and employees. TheSickness Insurance Funds cover 99 per cent of the population. The population have no choice of insurer. They are automaticallyaffiliated to a health insurance scheme on the basis of their professional status and place of residence.

Mutual Insurance Funds provide supplementary, voluntary insurance to cover cost-sharing arrangements and extra billings. Salariedworkers purchase voluntary insurance from their employers, but this can be purchased on an individual basis. The mutual funds cover80 per cent of the population, which means that for most of the population, 100 per cent of the cost of the majority of normalmedical procedures is reimbursed.

Private insurance is voluntary for those who do not contribute to the national health insurance system.

There are patient contributions for ambulatory care (around 30 per cent for GP and specialist visits), drugs (between 35 per cent and65 per cent depending on the therapeutic value) and 40 per cent for laboratory tests. Out of pocket payments account for 10 per centof health care expenditure.

Germany

General taxation and compulsory Social Insurance Fund contributions account for the majority of healthcare funding. Employers andemployees make contributions equally. The unemployed, homeless, and immigrants are covered through a special sickness fundfinanced through general tax revenues.

Private insurance, based on voluntary individual contributions, covers 8 per cent of the population (the affluent, self-employed andcivil servants).

Cost-sharing is mainly for drugs. Ambulatory care and preventative dental care do not require any patient contributions. User chargesapply to the first 14 days in hospital or rehabilitation each year, ambulance transportation, non-physician care and some dentaltreatment, but some groups are exempt (e.g. low income and elderly).

Italy

Taxation is the main source of public finance. There are patient contributions for pharmaceuticals, diagnostic procedures and specialistvisits and direct payments by users for the purchase of private health care services and over the counter drugs.

Mutual fund contributions and private insurance (corporate and non-corporate) account for 9 per cent of health expenditure.

Japan

Japan's health care system is predominately publicly funded. The majority of public finances comes from the Employees’ HealthInsurance System (Government and non-governmental bodies) and National Health Insurance (self-employed, pensioners, tradeassociations and others not covered by workplace based insurance). Most employees and their dependents obtain health insurancethrough their employers, financed largely through mandatory payroll contributions from both employers and employees.

New Zealand

Public hospital out-patient and in-patient services are free, but most people meet some costs of primary health care (although somegroups are exempt or have health concession cards) and make a payment for pharmaceuticals. Income-related patient contributions are required for GP services and non-hospital drugs.

Private insurance is mainly not-for-profit covering private medical care and complementary, used to cover cost-sharing requirements,elective surgery in private hospitals and specialist out-patient consultations. It does not offer comprehensive health cover. It covers about a third of the population.

Sweden

The majority of funding comes from taxes and is supplemented by grants from the national Government. There are direct patient fees for most medical services (flat rate payments), for example, consultation with public physicians in the primary sector, specialists in ahospital, in-patient stay and consultations with private ambulatory doctors. There is a national ceiling on out of pocket amounts payable by individuals in any one year. After the ceiling is reached the patient pays no further charges.

The voluntary health insurance market is very small.

United Kingdom

The United Kingdom's healthcare system is predominately public sector with the majority of the funds coming from general taxationand some from national insurance contributions. About 11.5 per cent of the population have supplementary private medical insurance,usually for reasons of faster access.

National Health Service care is free at the point of delivery, but charges are levied on prescription drugs, ophthalmic services and dental services. There are exemptions, for example, for children, elderly, and the unemployed and 85 per cent of prescriptions areexempt from the charge.

United States

The United States' healthcare system is predominately privately funded, with 55 per cent of the revenue from private sources.Individuals can purchase private health insurance or it can be funded by voluntary premium contributions shared by employers andemployees on a negotiable basis. It covers 58 per cent of the population.

Public funds (payroll taxes, federal revenues and premiums) fund Medicare, a social insurance programme for the elderly, the disabled,and end stage renal patients. It covers 13 per cent of the population and accounts for 20 per cent of total health expenditure.

Medicaid, a joint federal-state health insurance programme covers certain groups of the poor. It covers 17 per cent of the populationand accounts for 20 per cent of total health expenditure.

Sources: Securing Our Future Health: Taking a Long-Term View, Wanless, Interim report, November 2001, Final report April 2002; Health care systems ineight countries: trends and challenges European Observatory on Health Care Systems,2002; Multinational comparisons of health systems data, AndersonG.F. and Hussey P.S., The Commonwealth Fund, 2000

8

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INTERNATIONAL HEALTH COMPARISONS

The methods of financing healthcare (continued)6

10 Exploring the effects of health care on mortality across OECD countries, OECD Labour market and social policy - Occasional Papers No. 46, January 2001,paragraph 45.

11 Securing our Future Health: Taking a Long-Term View, Interim report, November 2001.

Part 3

INTERNATIONAL HEALTH COMPARISONS

Providing healthcare

9

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e

3.1 This Part of the compendium sets out comparativefigures on how healthcare is provided in terms ofhealthcare personnel, medical technology, drugs, thenumber of medical procedures carried out andpreventative medical programmes.

Health personnelDoctors and nurses

3.2 Recent OECD research has concluded that the numberof doctors is the second most important variable (afteroccupation) in terms of explaining variations inpremature mortality (deaths under the age of 70) across countries and over time. They also found that a10 per cent increase in the number of doctors, holdingall other factors constant, would result in a reduction in

premature mortality of almost four per cent for womenand about three per cent for men10.

3.3 Figure 7 provides information about the number ofpractising physicians per 1,000 people in thepopulation. The statistics need very carefulinterpretation because there are significant definitionaldifferences. For the United Kingdom, the figures shownupdate those in the Wanless Review of the future needsof the NHS11 which also used OECD data. The figuresare based on doctors working in the NHS and excludeprivate sector doctors, locums and clinical academics.In Italy, retired physicians continue to be classified as'practising', and this leads to anomalies. Italy has one ofthe lowest expenditures per head on healthcare (see Figure 4), but it has the highest recorded ratio ofdoctors to the population.

Number of practising physicians7

Source: OECD Health Data 2002

UnitedStates(1999)

Germany(2000)

France(1998)

Canada(2000)

Australia(1998)

Italy(2000)

NewZealand(2000)

Japan(2000)

UnitedKingdom(2000)

Num

ber

per

1,00

0 of

pop

ulat

ion

6

3.6

3

2.52.2 2.1

0

1

2

3

4

5

6

7

Sweden(1999)

2.8

1.9 1.8

2.9

10

part

thre

e

INTERNATIONAL HEALTH COMPARISONS

3.4 The OECD data show the United Kingdom as having thelowest number of practising physicians at 1.8 per 1000persons, considerably below the mean of 2.5 (excludingItaly). Taking into account data provided by the generalMedical Council on the number of practising physicians,the Department of Health estimated in 1996 that therewere 2.6 doctors per 1,000 of population, comparedwith the OECD reported figure for the United Kingdomof 1.7. For 1996, Germany reported 3.4 and France 3.0practising physicians per 1,000 of population.

3.5 The number of physicians in the United Kingdom hasincreased steadily over the last 20 years - by 40 per centover this period, Figure 8. But reported provision inother countries has generally increased at a faster rate.The result is that the countries have moved further apartand, discounting Italy for definitional reasons, thespread of provision has increased from 1.0 per 1,000 to1.8 per 1,000.

3.6 As well as having the lowest reported number of doctorsper head, the United Kingdom also has the secondlowest reported number of practising nurses in relation tothe population, Figure 9, although the UK nurse numbersare for the NHS only. The Department of Health told usthat UK qualified private sector nurses account for abouta quarter of all qualified nurses. The Department alsonoted that different countries still use different

classifications as to what constitutes a nurse and thatwhile the UK uses full time equivalents, other countriesuse headcounts. Germany, which has a high number ofdoctors, also has a high number of nurses in relation tothe population. These ratios cannot, however, be taken asdirect measures of the adequacy of provision as thefigures take no account of the pattern of healthcareprovision in different countries. Factors such as the rateof day case procedures or length of stay can have a majorimpact on the need for in-patient admissions andthroughput. Length of stay in the United Kingdom is oneof the lowest among the 10 comparator countries.

3.7 Acute admission rates are shown in Figure 10, whichputs the United Kingdom in the centre of the 10 countryrange. These figures can be used in conjunction withthose for numbers of nurses to standardise for the rate ofadmissions and length of stay as in Figures 11 and 12.

3.8 In terms of nurses per acute admission, the UnitedKingdom comes at the low end of the range, but bothFrance and Italy have lower provision, Figure 11. Interms of nurses per acute day, the United Kingdom isabove the other European countries in its provision,Figure 12.

Level of practising physicians, 1980 to 20008

Source: OECD Health Data 2002

0

1

2

3

4

5

6

7

Phys

icia

n de

nsit

y pe

r 1,

000

of p

opul

atio

n

Canada France Germany Italy Japan United Kingdom United States

United States

GermanyFrance

Canada

Italy

JapanUnited Kingdom

NOTE

Data are not available for all years for Japan

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

11

part

thre

e

INTERNATIONAL HEALTH COMPARISONS

Number of practising nurses9

Source: OECD Health Data 2002

9.3

8.4 8.3

0

2

4

6

8

10

12

NewZealand(2000)

Germany(1998)

Sweden(1999)

UnitedStates(1999)

Australia(1997)

Japan(1998)

Canada(2000)

France(1997)

UnitedKingdom(2000)

Italy(1999)

Prac

tisi

ng n

urse

s pe

r 1,

000

of p

opul

atio

n

8.17.6

6

5.3

4.5

9.7

7.8

Acute hospital admissions10

Source: OECD Health Data 2002

205.2 204

175.7

159 156147

117.6

99.4

50

100

150

200

250

0Germany

(2000)France(1999)

Italy(1998)

Sweden(1996)

Australia(1999)

United Kingdom(2000)

UnitedStates(2000)

Canada(1999)

Acu

te a

dmis

sion

s pe

r 1,

000

of p

opul

atio

n

NOTE

Acute care is one in which the principal intent is one or more of the following:! to manage labour (obstetrics)! to cure illness or to provide definitive treatment of injury! to perform surgery! to relieve symptoms of illness or injury (excluding palliative care)! to reduce severity of an illness or injury! to protect against exacerbation and/or complication of an illness and/or injury which could threaten life or normal function! to perform diagnostic or therapeutic procedures

12

part

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INTERNATIONAL HEALTH COMPARISONS

Practising nurses per 1,000 acute admissions11

Source: OECD Health Data 2002

75

70

51

45

36

2926

0

10

20

30

40

50

60

70

80

Canada(1999)

Australia(1997)

UnitedStates(1999)

UnitedKingdom(2000)

Italy(1998)

Germany(2000)

France(1997)

Prac

tisi

ng n

urse

s pe

r 1,

000

acut

e ad

mis

sion

s

Practising nurses per acute bed day12

Source: OECD Health Data 2002

1.4

1.31

1

0.8

0.6

0.47

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Australia(1999)

UnitedStates(2000)

UnitedKingdom(1997)

Italy(1998)

Germany(2000)

France(1999)

Nur

sing

sta

ff p

er a

cute

bed

day

(Fu

ll Ti

me

Equi

vale

nt)

13

part

thre

e

INTERNATIONAL HEALTH COMPARISONS

Number of acute hospital beds per 1,000 of population13

Source: OECD Health Data 2002

6.4

4.54.2

0

1

2

3

4

5

6

7

Australia(1999)

Canada(1999)

UnitedStates(2000)

Sweden(2000)

UnitedKingdom(2000)

Italy(1999)

Germany(2000)

France(2000)

Acu

te b

eds

per

1,00

0 of

pop

ulat

ion

3.8

3.3 3.33

2.4

Bed occupancy for acute beds14

Source: OECD Health Data 2002

83 81.1

0

10

20

30

40

50

60

70

80

90

Australia(1999)

UnitedStates(2000)

Sweden(1996)

UnitedKingdom(2000)

Italy(1998)

Germany(2000)

France(1999)

Perc

enta

ge o

f ava

ilabl

e ac

ute

beds

77.5 77.473.3

70

63.9

14

part

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e

INTERNATIONAL HEALTH COMPARISONS

Medical infrastructure3.9 A basic measure of healthcare capacity is the number of

beds per head, though it suffers from the same problemsas the statistics for medical staff in being affected bypatterns of health care. The ratios shown in Figure 13range from 6.4 beds per 1,000 of population inGermany, to 2.4 in Sweden with the United Kingdom atthe lower end of this range.

3.10 Taking account of the use made of acute hospitalbeds, the United Kingdom has the highest occupancyof such beds of the countries for which information isavailable, Figure 14.

3.11 Magnetic Resonance Imaging units stand as a proxy forinvestment in new technology and how up to datemedical facilities are. In relation to the size of thepopulation, the figure for England of 3.9 per millionpeople is a little over half of the 10 country average of6.9 per million people. However, Figure 15 shows thatthe average is influenced by very high provision in Japan.Canada has the lowest provision with about two-thirdsthe numbers in England. Since 2000 there has been anincrease in the provision of MRI units in the UnitedKingdom, partly through support from the NewOpportunities Fund.

Medicines and drugs3.12 Medicines are an essential component of healthcare.

But as with other measures, comparisons can be verymisleading. The United Kingdom has pursued a policy

of prescribing generic drugs which are considerablycheaper than branded ones and expenditure may not bea good measure of volume. The effects of different priceregulation systems is another factor, as is the availabilityof over the counter drugs in some countries that wouldbe prescription only in others.

3.13 Figure 16 shows expenditure on what countries classifyas public funding for drugs and other medical non-durables prescribed for hospital out-patients. There is awide range of spending across countries, with thehighest spending per head in France and Japan at almostthree times that in Australia and the United States.

Medical procedures carried out3.14 Comparable information on individual procedures across

different countries is limited but is available for coronarybypass procedures in eight comparator countries. TheUnited States carries out almost five times as many ofthese operations as in the United Kingdom per head ofpopulation, Figure 17. If the United States is excluded asan outlier, the average rate for the other countries is justover 60 procedures per 100,000 of population.

Preventative medical programmes3.15 A measure of the extent of preventative health measures is

the extent of childhood immunisation. A range of caveatsapplies including issues such as public perception of thesafety of immunisation and the authorities' policy on whenor whether this should be carried out.

Availability of Magnetic Resonance Imaging units15

Source: OECD Health Data 2002

23.2

0

5

10

15

20

25

Australia(2000)

UnitedStates(1999)

Japan(1999)

Sweden(1999)

England(2000)

Italy(1999)

Germany(1997)

France(1999)

NewZealand(1998)

Canada(2000)

Uni

ts p

er m

illio

n of

pop

ulat

ion

8.1 7.96.7 6.2

3.92.8 2.6 2.5

4.7

15

part

thre

e

INTERNATIONAL HEALTH COMPARISONS

Public expenditure on pharmaceuticals and other medical non-durables prescribed for out-patients 16

Source: OECD Health Data 2002

300

250

200

150

100

50

0Sweden(1997)

Germany(1998)

NewZealand(1997)

UnitedStates(2000)

Australia(1998)

Japan(1999)

Canada(2000)

France(2000)

Italy(2000)

UnitedKingdom(2000)

Expe

ndit

ure

per

head

(U

S$ e

xcha

nge

rate

)

272 271

201

157149

133

112103 101

237

217201

UnitedStates(1998)

Australia(1999)

Germany(1998)

Canada(1999)

NewZealand(2000)

Italy(1999)

UnitedKingdom(1996)

France(1993)

Cor

onar

y by

pass

es p

er 1

00,0

00 o

f pop

ulat

ion

202.6

66.4

51.6

35

Coronary bypass procedures per 100,000 of population17

Source: OECD Health Data 2002

250

200

150

100

50

0

91.5 90.2

46.441.2

16

part

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e

INTERNATIONAL HEALTH COMPARISONS

3.16 Immunisation against measles is reported as close touniversal in Japan, Canada and Sweden, though it fallsbelow 90 per cent in Australia, France, Germany andItaly, Figure 18. Immunisation against diphtheria,tetanus and whooping cough is generally higher

and the United Kingdom achieved a rate in excess of91 per cent. Sweden achieved a rate of 99 per cent,while the lowest rate was in the United States at 83 per cent, Figure 19.

Pror

port

ion

of e

ligib

le p

opul

atio

n (p

er c

ent)

Percentage of children immunised against measles 18

Source: OECD Health Data 2002 and Department of Health. Figure for United Kingdom is for Measles, Mumps and Rubella coverage at 24 months

Japan(1999)

Canada(1998)

Sweden(2000)

UnitedStates(1999)

UnitedKingdom

(2001-2002)

Australia(2000)

France(1998)

Germany(1997)

Italy(1999)

92 91

84.5 83

100

90

80

70

60

50

40

30

20

10

0

96.5 96.2 95.2

75 75

Prop

orti

on o

f elig

ible

pop

ulat

ion

(per

cen

t)

Percentage of children immunised for diphtheria, tetanus and pertussis (whooping cough)19

Source: OECD Health Data 2002 and Department of Health. The United Kingdom figure relates to diptheria, tetanus and polio rather than pertussis but the OECD has calculated that this figure is only marginally different to those given for other countries

Sweden(2000)

France(1998)

Italy(1999)

UnitedKingdom(2000)

Australia(2000)

NewZealand(1999)

Germany(1997)

Canada(1998)

UnitedStates(1999)

99.195

91.8 89.885 84.2 83

100

90

80

70

60

50

40

30

20

10

0

98

88.4

Part 4

INTERNATIONAL HEALTH COMPARISONS

Health achievements

17

part

four

4.1 This Part presents comparative information relevant to howwell healthcare systems perform. A first measure is the stateof health in countries, though this is determined by manyfactors other than the healthcare system. A secondmeasure is the extent to which healthcare systems improvehealth. Limited comparative information is available onthis, though data are available about survival rates aftercancer treatment.

Life expectancy4.2 A fundamental measure of health in a particular country

is life expectancy though while healthcare systems havean influence on life expectancy, it depends equally if notmore on a wide range of other factors such as personalincome, lifestyle, education, nutritional standards, andhousing quality. One way of measuring life expectancyis the number of years that individuals born 'now' canon average expect to live if current patterns of mortalityand disability continue to apply. The measure has thelimitation of applying only to the current birth cohort.Life expectancy has generally risen over time, so lifeexpectancy for the population as a whole will be lowerthan indicated by the most recent statistics.

4.3 Figure 20 shows that life expectancy at birth (in recentyears) ranges between about 79 and 85 years for womenacross the 10 comparator countries, and between 74 and78 years for men. This amounts to an 8 per cent range forwomen and 5 per cent for men. Japan has the longestexpected life span, followed closely within Europeancountries by France and Sweden and then Italy andGermany. The United Kingdom comes towards the lowerend of the fairly small range for both men and women.The United Kingdom has, however, one of the smallestdifferences in life expectancy between women and menat 4.8 years, with France at 7.5 years being the largest.

4.4 An alternative way of assessing life expectancy is basedon the calculation of 'Potential years of life lost'. Thismeasure assumes that all those who die before the age

of 70 die prematurely. This figure needs to be seen in thecontext of the currently expected life spans at birth ofaround 80 years for women and 75 years for men.

4.5 The United States loses more potential life years than theother countries in the comparator group, Figure 21. Thereis a considerable variation across countries, and incontrast to the data on life expectancy at birth, where theUnited Kingdom is among the lowest, on the years lostmeasure, the United Kingdom ranks fourth lowest behindSweden, Japan and Italy. This illustrates the dangers ofrelying on single indicators to draw conclusions.

4.6 For both sexes, the highest number of years lost (per 100,000 population) is some 80 per cent above thelowest one. There are also marked differences in thenumber of years of life lost by men and women. In theUnited Kingdom, potential years of life lost for males are 64 per cent higher than for females.

Infant and perinatal mortality4.7 An important reason for increased life expectancy at

birth has been a decline in infant mortality. Among theexplanations for this are better ante and post-natal careand widespread immunisation against childhooddiseases - influences within the control of health policymakers. Recent research suggests that the number ofdoctors per capita appears to be the second mostimportant variable (behind occupation) in explainingboth perinatal and infant mortality. The results indicate,all else equal, that a 10 per cent increase in the numberof doctors would result in almost a 6 per cent decreasein perinatal mortality and a 6½ per cent decrease ininfant mortality12. The research found that the overalllevel of public financing also appears to be a significantfactor in reducing both infant and perinatal mortality13.The OECD hypothesis is that this may reflect thelikelihood that publicly funded systems provide moreequitable health service provision.

12 Exploring the effects of health care on mortality across OECD countries, OECD Labour market and social policy - Occasional Papers No. 46, January 2001,paragraph 55.

13 ibid paragraph 56.

18

part

four

INTERNATIONAL HEALTH COMPARISONS

Potential years of life lost 21

Source: OECD Health Data 2002, based on World Health Organization data

Pote

ntia

l yea

rs lo

st b

elow

age

70

per

100,

000

peop

le

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0Japan(1999)

France(1998)

Sweden(1998)

Australia(1999)

Italy(1998)

Canada(1997)

Germany(1999)

NewZealand(1998)

UnitedKingdom(1999)

UnitedStates(1998)

The lighter tinted bar represents male patients. The darker tinted bar represents female patients.

Life expectancy at birth20

Source: OECD Health Data 2002

84.6

68

70

72

74

76

78

80

82

84

86

Australia(2000)

UnitedStates(1999)

Japan(2000)

Sweden(2000)

UnitedKingdom(1999)

Italy(1997)

Germany(1999)

France(1999)

NewZealand(1999)

Canada(1999)

Yea

rs

82.582 82 81.7 81.6

80.8 80.779.8 79.4

77.6

75

76.677.4

76.375.3

75.7

74.7 75

73.9

NOTE

The life expectancy is calculated on the assumption that age-specific mortality levels remain constant.

The lighter tinted bar represents female patients. The darker tinted bar represents male patients.

19

part

four

INTERNATIONAL HEALTH COMPARISONS

4.8 Figures 22 and 23 show the strong decline in perinataland infant mortality over the 1980s and the continuedbut less marked decrease across most comparatorcountries since then. All these countries have madesteady progress over the last 20 years, with those havingthe highest rates in 1980 reducing rates a little faster. Theresult has been that the spread between the countries forperinatal mortality has reduced from 9.1 deaths per1,000 total births in 1980 to 4.5 per 1,000 in 2000.From 1993, the United Kingdom started to countmortality after 24 weeks gestation, rather than the 28 weeks used by other countries.

Main causes of death4.9 The main causes of death for the comparator countries

are shown at Figure 24. The most significant causes ofdeath from disease in developed countries are cancer(malignant neoplasms) and cardio-vascular illness, andpatterns are similar in all countries.

Deaths from cancer

4.10 Analysis of cancer mortality statistics is a difficult areaand variations across countries need carefulinterpretation. The chances of dying from cancer dependon how quickly patients recognise and act on symptoms,the impact of measures affecting lifestyle (such assmoking habits) and the existence of screeningprogrammes. There are also marked differences in cancermortality rates between socio-economic groups, (whichcorrelate with some of the other factors mentioned).However, the quality of medical intervention is also animportant factor, recognised for example for the UnitedKingdom in the NHS Cancer Plan14.

4.11 Cancer is an illness in the United Kingdom subject toactive measures to improve performance and this needsto be borne in mind when considering the statistics. Aspart of the performance improvements expected as aresult of the increased funding announced in the 2002Budget, the Government requires the NHS to reducemortality rates from cancer by at least 20 per cent inpeople under 75 by 2010.

14 The NHS Cancer Plan, Department of Health, September 2000.

United Kingdom

Perinatal mortality, 1980 to 200022

Source: OECD Health Data 2002

Australia Canada France Germany ItalyJapan New Zealand Sweden United Kingdom United States

0

2

4

6

8

10

12

14

16

18

20

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Dea

ths

per

1,00

0 to

tal b

irth

s

NOTE

Perinatal mortality is the number of deaths within seven days of birth plus foetal deaths of 28 weeks of gestation or moreper 1,000 total births (live and stillbirths). The UK includes deaths from 24-28 weeks of gestation while other countries do not.

United States

Germany

France

Canada

AustraliaItaly

New ZealandJapan

Sweden

20

part

four

INTERNATIONAL HEALTH COMPARISONS

4.12 Figure 25 shows the trend in cancer deaths for the 10 comparator countries over the last two decades. Forthe last year of complete comparisons, the UnitedKingdom and New Zealand jointly had the highestdeath rates, although the rates in both countries are ona downward trend.

4.13 Recent data for death rates from all cancers (against astandardised age profile to take account of differentdemographics in countries) are shown in Figure 26. New Zealand and the United Kingdom reportcomparatively high death rates. The rate (per 100,000population) in France and Germany is about 2½ and5 per cent lower than in the United Kingdom respectively.The rate in Sweden, the country with the lowest cancerdeath rate among the 10 countries, is about 18 per centbelow that of the United Kingdom.

4.14 Figure 27 shows the mortality rates for the four maincancer killers in the comparator countries. Overall, theUnited Kingdom is in the top group for overall deathsalthough it has the highest rate only for breast cancer.

4.15 Further comparative information on death rates from themain cancers over time is given in Appendix 2. Figures 28 and 29 show death rates from lung andbreast cancer.

4.16 United Kingdom mortality comes towards the middle ofthe range for lung cancer, but is above all of thesecomparator countries for breast cancer.

Deaths from circulatory diseases

4.17 Cardio-vascular diseases include ischaemic heartdisease, myocardial infarction and cerebro-vasculardiseases15. As part of the performance improvementsexpected as a result of the increased funding announcedin the 2002 Budget, the Government requires the NHSto reduce substantially mortality rates from heart diseaseby at least 40 per cent in people under 75 by 2010.

Infant mortality, 1980 to 200023

Source: OECD Health Data 2002

Australia Canada France Germany ItalyJapan New Zealand Sweden United Kingdom United States

0

2

4

6

8

10

12

14

16

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Dea

ths

per

1,00

0 liv

e bi

rths

NOTE

Infant mortality is the number of deaths of babies aged under one year that occurred during a year per 1,000 live births during the same year, expressed as a rate.

United States

GermanyFrance

Canada

Italy

New Zealand

Japan

United Kingdom

Sweden

15 'Ischaemia' means an inadequate supply of blood and is usually the consequence of the gradual narrowing of the arteries supplying blood and oxygen. If anarrowed coronary artery blocks off suddenly - as it may if a blood clot forms in it - the part of the heart muscle supplied by that artery may die and causesevere chest pain. This is a 'heart attack', also known as a myocardial infarction ('myocardium' referring to the heart muscle and 'infarction' referring to thedeath of a part of it). There are two main forms of cerebro-vascular disease leading to stroke - resulting from either ischaemic disease affecting the bloodcirculation system of the brain, or from haemorrhage of surface blood vessels.

21

part

four

INTERNATIONAL HEALTH COMPARISONS

4.18 United Kingdom death rates are highest, second highestand third highest respectively across the group ofcountries for the three circulatory conditions included inFigure 30. The overall death rate is two and a half timesthat of France, with that for ischaemic heart diseasebeing four times the rate reported from Japan.

4.19 Trends in most countries for ischaemic heart diseasehave been downward, most markedly in countries withhighest death rates at the start of the period from 1980shown in Figure 31.

Health outcomes4.20 Information about the value added by healthcare

systems in general or in relation to specific interventionsis very limited. The most comprehensive internationaldata relate to cancer survival rates. The standardmeasure is the percentage of cancer patients alive fiveyears after treatment. This measure has potentialdrawbacks, as increases in five-year survival rates maybe the result of better and earlier diagnosis, rather thanrepresent a real postponement of death.

4.21 Figures 32 to 35 show the five-year survival rates for thefour main cancer killers. The performance of England isconsistently at or near the bottom for the comparatorcountries, alternating bottom position with Scotland.These are based on historical data for patients diagnosedbetween 1985 and 1989. The implementation of theCalman/Hine report (1995) and the NHS Cancer Plan(2000) is not, therefore, reflected in these figures, but isexpected to affect incidence, survival and mortality rates.

Performance of healthcare systems4.22 Healthcare systems are complex and making

judgements about their performance overall is verydifficult. Average length of stay is often used as anindicator of the efficiency with which a system treatspatients, alongside the assumption that all medicallyappropriate treatment is delivered to clinicallyacceptable standards and discharges are medicallyapproved. On this basis, a lower length of stay indicatesbetter efficiency in the use of acute beds. Germany hasthe longest length of acute (hospital) stay at 9.6 days,while the United Kingdom is in the middle of the rangeof countries at 6.2 days, Figure 36.

Dea

ths

per

100,

000

of p

opul

atio

n (s

tand

ardi

sed)

Main causes of death24

Source: OECD Health Data 2002

United States(1998)

UnitedKingdom(1999)

Germany(1999)

Canada(1997)

NewZealand(1998)

Sweden(1998)

Italy(1998)

France(1998)

Japan(1999)

Australia(1999)

700

600

500

400

300

200

100

0

Diseases of circulatory system

Endocrine and metabolic diseases

Malignant neoplasms

Diseases of digestive system Diseases of nervous system

Diseases of respiratory system Non-medical causes

NOTE

Age-standardised death rates take into account the differences in age structure of the populations

22

part

four

INTERNATIONAL HEALTH COMPARISONS

Deaths from cancer, 1980 to 199925

Source: OECD Health Data 2002

Australia Canada France Germany ItalyJapan New Zealand Sweden United Kingdom United States

140

150

160

170

180

190

200

210

220

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Dea

ths

per

100,

000

of p

opul

atio

n (s

tand

ardi

sed)

United StatesGermany

FranceCanada

AustraliaItaly

New Zealand

Japan

United Kingdom

Sweden

Dea

ths

per

100,

000

of p

opul

atio

n (s

tand

ardi

sed)

Latest known mortality for all cancers26

Source: OECD Health Data 2002

NewZealand(1998)

UnitedKingdom(1999)

France(1998)

Canada(1997)

Germany(1999)

UnitedStates(1998)

Italy(1998)

Australia(1999)

Sweden(1998)

189.1184.7 180

164.5

Japan(1999)

152.3

200

180

160

140

120

100

80

60

40

20

0

177.1 175.3 174.9 174.8

154.6

23

part

four

INTERNATIONAL HEALTH COMPARISONS

Dea

ths

per

100,

000

of p

opul

atio

n (s

tand

ardi

sed)

Main cancer killers with death rates27

Source: OECD Health Data 2002

NewZealand(1998)

Canada(1997)

UnitedKingdom(1999)

UnitedStates(1998)

Germany(1999)

France(1998)

Australia(1999)

Sweden(1998)

Japan(1999)

Italy(1998)

140

120

100

80

60

40

20

0

18.7

27.6

9.5

9.3

19.2

23.4

37.2

18.5

38.1

21.9

22.9

17.1

30.9

28.8

35.7

28

26.2

26.7

47.9

18.1

26.7

28.9

42.7

19.6

23.8

24.1

52.1

17.6

25.4

25.9

32.6

23.5

26.9

24.8

33.7

19

27.2

22

32.8

21.4

Colon Lung Breast Prostate

Deaths from lung cancer 28

Source: OECD Health Data 2002

Dea

ths

per

100,

000

of p

opul

atio

n (s

tand

ardi

sed)

80

70

60

50

40

30

20

10

0Japan(1999)

France(1998)

Sweden(1998)

Australia(1999)

Italy(1998)

Canada(1997)

Germany(1999)

NewZealand(1998)

UnitedKingdom(1999)

UnitedStates(1998)

The lighter tinted bar represents male deaths. The darker tinted bar represents female deaths.

71.9

11.2

71.4

32.2

63.9

9.7

61.3

29.1

59.4

14

49.9

18.9

49.7

25.3

48.9

12.7

31

16.7

68.9

37.6

24

part

four

INTERNATIONAL HEALTH COMPARISONS

Deaths from breast cancer 29

Source: OECD Health Data 2002

Dea

ths

per

100,

000

fem

ales

(st

anda

rdis

ed)

30

25

20

15

10

5

Japan(1999)

France(1998)

Sweden(1998)

Australia(1999)

Italy(1998)

Canada(1997)

Germany(1999)

NewZealand(1998)

UnitedKingdom(1999)

UnitedStates(1998)

26.725.9

24.823.4

22 21.9

9.5

9

0

28.9 28.8

24.1

Deaths from main circulatory diseases30

Source: OECD Health Data 2002

0

20

40

60

80

100

120

140

160

Australia(1999)

UnitedStates(1998)

Japan(1999)

Sweden(1998)

UnitedKingdom(1999)

Italy(1998)

Germany(1999)

France(1998)

NewZealand(1998)

Canada(1997)

Dea

ths

per

100,

000

of p

opul

atio

n (s

tand

ardi

sed)

The lightest tinted bar represents ischaemic heart disease. The darkest tinted bar represents acute myocardial infarction.The medium tinted bar represents cerebro-vascular disease.

25

part

four

INTERNATIONAL HEALTH COMPARISONS

Deaths from ischaemic heart disease, 1980 to 199931

Source: OECD Health Data 2002

Australia Canada France Germany ItalyJapan New Zealand Sweden United Kingdom United States

0

50

100

150

200

250

300

350

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Dea

ths

per

100,

000

of p

opul

atio

n (s

tand

ardi

sed)

United States

Germany

France

CanadaAustraliaItaly

New Zealand

Japan

United Kingdom

Sweden

Five-year survival rates for lung cancer 32

Sources: United States figures from SEER Cancer Statistics Review 1973-1999, National Cancer Institute, 2002, cancer first diagnosed between 1986 and 1988. All other countries from Survival of cancer patients in Europe: the EUROCARE-2 study, 1999, cancer first diagnosed between 1985 and 1989

Five

-yea

r su

rviv

al r

ate

(per

cen

t)

18

16

14

12

10

8

6

4

2

0

The lighter tinted bar represents female deaths. The darker tinted bar represents male deaths.

France

15.9

United States

12

Germany

13.8

8.7

Netherlands

10.8

Italy

10.1

8.6

Europe

9.98.9

Sweden

8.8

England

7.1 7

Scotland

6.3 6.1

11.5

15.4

11.7

9.6

26

part

four

INTERNATIONAL HEALTH COMPARISONS

Five-year survival rates for breast cancer 33

Sources: United States figures from SEER Cancer Statistics Review 1973-1999, National Cancer Institute, 2002, cancer first diagnosed between 1986 and 1988. All other countries from Survival of cancer patients in Europe: the EUROCARE-2 study, 1999, cancer first diagnosed between 1985 and 1989

Five

-yea

r su

rviv

al r

ates

(pe

r ce

nt)

0

10

20

30

40

50

60

70

80

90

United States

82.8

Sweden

80.6

France

80.3

Italy Netherlands

74.4

Europe

72.5

Germany

71.7

England Scotland

65

76.7

66.7

Five-year survival rates for cancer of the colon 34

Sources: United States figures from SEER Cancer Statistics Review 1973-1999, National Cancer Institute, 2002, cancer first diagnosed between 1986 and 1988. All other countries from Survival of cancer patients in Europe: the EUROCARE-2 study, 1999, cancer first diagnosed between 1985 and 1989

Five

-yea

r su

rviv

al r

ates

(pe

r ce

nt)

70

60

50

40

30

20

10

0

The lighter tinted bar represents male patients. The darker tinted bar represents female patients.

United States

61.6 60.2

Netherlands

55.7

France

51.854

Sweden

51.855.5

Germany

49.6 49.9

Italy

46.9

Europe

46.8 46.7

Scotland

41.1

England

41 41.3

58.7

47

27

part

four

INTERNATIONAL HEALTH COMPARISONS

Five-year survival rates for prostate cancer35

Sources: United States figures from SEER Cancer Statistics Review 1973-1999, National Cancer Institute, 2002, cancer first diagnosed between 1986 and 1988. All other countries from Survival of cancer patients in Europe: the EUROCARE-2 study, 1999, cancer first diagnosed between 1985 and 1989

Five

-yea

r su

rviv

al r

ates

(pe

r ce

nt)

90

80

70

60

50

40

30

20

10

0Sweden

64.7

France

61.7

55.7

Europe Netherlands

55.3

England

44.3

United States

81.1

Germany Italy

47.4

Scotland

47.2

67.6

Average length of stay for acute care36

Source: OECD Health Data 2002

Germany(2000)

Italy(1998)

Canada(1999)

Australia(1999)

UnitedKingdom(2000)

UnitedStates(1999)

France(1999)

Sweden(2000)

NewZealand(1998)

Day

s

12

10

8

6

4

2

0

7.2 7.1

6.2 6.25.9

5.5 5 4.9

Average length of stay is computed by dividing the number of days stayed (from the date of admission in an in-patient institution)by the number of separations (discharges and deaths) during the year.

9.6

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Appendix 1 Healthcare delivery systems

1.1 This appendix sets out the health care delivery systems inthe ten comparator countries. The main sources used tocompile it were: Health Care Systems In Eight Countries:Trends and Challenges, European Observatory on HealthCare Systems, 2002; Multinational Comparisons ofHealth Systems Data, Anderson G.F. and Hussey P.S., TheCommonwealth Fund, 2000; and, Securing Our FutureHealth, Wanless D., Interim Report, November 2001. Wealso used material from the European Observatory web-site and from web-sites of Government healthdepartments of the countries.

Australia1.2 Australia offers universal access to health care to all

residents through Medicare. Individuals eligible forMedicare receive free ambulatory medical care and freeaccommodation and medical, nursing and other care aspublic patients in state funded hospitals. Alternativelythey may choose treatment as private patients in publicor private hospitals, with some assistance fromMedicare. Figure 1.1 shows the health care deliverysystem and flows of finance in Australia. Australia hascomplex health care system with many types of servicesand providers and a range of funding and regulatorymechanisms. There is a large and vigorous private sectorin health services.

Role of the Government

1.3 The federal Government has control over hospitalbenefits, pharmaceuticals, and medical services. TheStates are primarily responsible for funding andadministering public hospitals and mental andcommunity health services, and pay for public hospitalswith federal Government assistance.

Primary care

1.4 Private practitioners provide most community-basedmedical and dental treatment and there is a large privatehospital sector. The bulk of primary medical care isprovided by GPs. They are mostly self-employed and runtheir practices as businesses. They are reimbursed by afee-for-service system. Patients have a choice of GP withno restrictions and may consult more than one GP sincethere is no requirement to enrol with a practice. GPs actas gatekeepers to in-patient and out-patient services.

In-patient/secondary care

1.5 In-patient care is provided by public hospitals (70 percent of stock of acute care beds). Patients with privatehealth insurance may chose to be admitted to eitherpublic or private hospitals and may also choose theirspecialist. Medicare subsidises medical costs but notaccommodation costs. Physicians in public out-patienthospitals are either salaried (but may have privatepractices and fee-for-service income) or paid on a persession basis.

INTERNATIONAL HEALTH COMPARISONS

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Private HealthInsurers

Commonwealth Government

Some states have regional health

authorities

Public health

Community health services

General practitioners

Specialist medical

practitioners

Pharmacist

Public hospitals

Private hospitals

Population

Patients

Compulsory health

insurance levy Taxes

Taxes

30% rebate on private health insurance premiums

State & territoryGovernments

General and specific purpose payments

Some contracting

Some contracting

Budget and salaries

Budgets

Budgets

FFS or sessional

Case -mix and other

Mostly FFS with small sessional & capitation payments

FFS

Reimburse-ment against schedule

Reimbursement of hotel charges & 15% gapbetween Government rebate & schedule of fees

Hotel charges and significant OOP costs

Source: OECD Health Data 2002

Source: OECD Secretariat

Free to health care card holder, but copayments, OOP & OTC charged to others

Small % are free, most pay 15% copayments & OOP

Mostly free, (80%), some OOP & 15% copayments

Mostly free, may be nominal charges

Voluntary contributions

Financing of healthcare in Australia, 19991.1

OOP - Out of pocket paymentsOTC - Over the counter drugsFFS - Fee-for-service

Financial flowsService flows

Canada1.6 Although predominately publicly funded, healthcare is

largely delivered by private providers, particularly in theprimary care sector, Figure 1.2.

Role of the Government

1.7 The federal Government requires that provincial healthinsurance plans cover all medically necessary physicianand hospital services. The provincial governments havethe authority to regulate health providers. However,they delegate control over physicians and otherproviders to professional "colleges" whose duty is tolicense providers and set standards for practice.

Primary care

1.8 Most primary physicians are in private practice and areremunerated on a fee-for-service basis. Provincialmedical associations negotiate the fee schedules forinsured services with provincial health ministries.Physicians must opt out of the public system of paymentto have the right to charge their own rates.

In-patient/secondary care

1.9 In-patient care takes place in public and private non-profit hospitals that operate under global budgets orregional budgets with some fee-for-service payment. Lessthan 5 per cent of Canadian hospitals are privatelyowned and are mainly long-term care facilities.

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Private Insurers

Federal Government

RHAs (except NS & Ont) funding for service varies by

province

Workers Compensation

Board

Other institutions

Community health services

Dental & Vision Care, Other Practitioners

Hospitals

Physicians(about 80%

Fee-for-service)

Pharmaceuticals(incl over the counter drugs

Public Health

Population and Enterprises

Patients

premiums

Taxes

Taxes

Taxes

Healthcare services for natives living on reserves, RCMP, inmates in federal prisons, veterans & military personnel

Provincial Governments

Transfers

Transfers

Limited coverage

Limited coverage

Global budgets

Source: OECD Health Data 2002

Source: OECD Secretariat

Voluntary contributions

Financing of healthcare in Canada, 20001.2

OOP - Out of pocket paymentsRHA - Regional Health Authority

Primary financierFinancial flowsService flows

Municpal Governments

Employercontribution

OOP

OOP

OOP

OOP

reimbursements

England1.10 OECD system information is only available for England.

Other constituent parts of the United Kingdom havetheir own structures for delivering a largely publicallyfunded health service, free at the point of use.

1.11 Primary care services are mainly provided by GPs andmulti-professional teams in health centres (under acapitated budget), Figure 1.3. Hospitals are mainlypublicly owned with independent trust status. Privatehospitals mainly provide services to privately insuredpatients or those who are willing to pay directly.

Role of the Government

1.12 The Government is responsible for health legislation andgeneral policy matters and is a purchaser and providerof health care.

Primary care

1.13 GPs act as gatekeepers and are brought together inPrimary Care Groups/Trusts with budgets for all care ofenrolled populations. Most ambulatory care is providedby GPs in group practices. Private general practice isvery small. Physicians are paid directly by theGovernment through a combination of methods: salary,capitation, and fee-for-service.

1.14 Ambulatory care is also provided in 36 walk-in clinicsand there is a 24-hour telephone helpline service (NHS Direct) as a first point of contact.

In-patient/secondary care

1.15 Access to emergency care is through personalattendance at Accident and Emergency departments inacute hospitals. Patients may walk in to suchdepartments or use the free ambulance service in casesof extreme urgency. Patients may also be advised toattend Accident and Emergency departments by theirGP or NHS Direct.

1.16 Access to in-patient care is through GP referral. Mostreferrals are made to local hospitals and followcontractual arrangements between health authorities,Primary Care Trusts and the hospital. Secondary care isprovided in general acute NHS trusts, small-scalecommunity hospitals and highly specialised tertiarylevel hospitals. Hospitals are semi-autonomous self-governing public trusts that contract with groups ofpurchasers. Consultants are salaried.

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Private Health Insurance

RetailPharmacists

PrivateHospitals

Primary Care Groups (can evolve into

Primary Care Trusts)

StrategicHealth

Authorities

Hospital andCommunityHealthTrusts

Department of Health

NHS Executive

Regional Offices

Population

Patients

Source: OECD Health Data 2002

Risk related, voluntary premiums

Financing of healthcare in England, 19991.3

General taxation and

National Insurance contributionsGlobal budgets for HCHS* and

prescribing set by weighted capitation

Prescriptoncharges

Prescribeddrugs

Reimbursement

Prescribing

GP and practice

nursing services

Hospital andcommunity health services

Referrals Commissioningof most HCHS*

Directpayments

Commissioning of highly

specialised HCHS*

Direct payments

GP remunerationand expenses

Global budgets

for HCHS* andprescribing

GP remunerationand expenses

NOTE

* HCHS: Hospital and Community Health Services

Financial flowsService flowsReferral flows

Source: Department of Health, England

France1.17 All legal residents are covered by public health

insurance. They have no choice to opt out. Most haveadditional private insurance to cover areas that are noteligible for reimbursement by the public healthinsurance system and many make out of pocketpayments to see a doctor. Health care is purchased andpaid for by health insurance schemes and theGovernment and provided by private (self-employed)practitioners and public and private (for-profit and not-for-profit) hospitals, Figure 1.4.

Role of the Government

1.18 The French Government regulates contribution ratespaid to sickness funds, sets global budgets and salariesfor public hospitals, and supervises national feeschedule negotiations.

Primary care

1.19 French patients have free choice of provider. They canvisit any GP or specialist practising privately or workingin hospital out-patient, without referral or any limit onthe number of consultations. Ambulatory care is mainlyprovided by professionals practising privately. Most GPsand specialists are paid on a fee-for-service basisaccording to agreed fee schedules. Patients payphysicians' bills and are reimbursed by sickness funds(public reimbursement model). GPs have no formalgatekeeper function. The Government introduced a non-obligatory gatekeeping mechanism in 1987 but only1 per cent of the patients and 10 per cent of GPs signedup to this.

In-patient/secondary care

1.20 In-patient care is provided in public and private hospitals(not-for-profit and for-profit). Doctors in public hospitalsare salaried whilst those in private hospitals are paid ona fee-for-service basis. Some public hospital doctors areallowed to treat private patients in the hospital, withinlimits. A percentage of the private fee is payable to the hospital.

1.21 Most out-patient care is delivered by doctors, dentistsand medical auxiliaries working in their own practices(62 per cent are in sole practice, the remainder are in groups). Out-patient care is also provided to a lesserextent in hospitals and marginally in health centres (runby local authorities or mutual associations).

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NOTES FOR FIGURE 1.4 (OPPOSITE)

Fully private health insurance concerns only a minority of extra-territorial workers, or cross border workers.

(1) ACOSS = Central Social Security Account

(2) CANAM = Health Insurance Fund for self-employed

(3) MSA = Health Insurance Fund for farmers

(4) URSSAFF = Body collecting social contributions

Source: OECD Secretariat

INTERNATIONAL HEALTH COMPARISONS

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Private health insurance

Reimbursement of patients

Reimbursement of patients

Fee-for-service Private clinics

Payment of global budgets

to hospitals

Regulation of supply,

hospitals, drugs

Population and Enterprises

Patients

Source: OECD Health Data 2002

Financing of healthcare in France, 19991.4

"Mutuelles" & private health

insurance premiums

State financial funds,

Refinancing of deficits

ACOSS (1)

Control

Main health insurance funds

(CNAMts)

"Mutuelles", SocialSecurity, Mandatory

Sickness Funds

CANAM (2)

MSA (3)

Ministry of Social Affairs, Secretary of State for Health and other public bodiesMinistry of Finance

and Industry, controls balancing

accounts

Obligatory employer/employee social contributions

(CSG)

URSSAFF (4) Tax services

Copayments and other patient

direct payments

National target for health spending

Target for medical spending

(ONDAM)

Public hospitals and equivalent

hospitals

Doctors:Generalists,Specialists

Prescribed auxiliary and ambulatory

services

Regional hospital supervisory

agencies

Allocation of global budgets

Localgovernment

Agreement with retail pharmacists

RE: generic & substitution drugs

Economic Regulatory Agency for health

products (Drug Agency)

ContractsPharmaceutical

industry

Privateclinics

Community health centres

Retail pharmacies and drugs

Germany1.22 92 per cent of the population is covered by statutory

health insurance, and just under 8 per cent by privatehealth insurance but 0.2 per cent is not covered at all.Ambulatory care and hospital care have traditionallybeen distinct domains with almost no out-patient caredelivered in hospitals, Figure 1.5. Ambulatory care isdelivered by private office-based physicians(generalists and specialists). Hospital in-patient care isprovided by a mix of public and private providers,although only a small proportion of total beds is in for-profit hospitals.

Role of the Government

1.23 The Government regulates the sickness funds. However,it has increasingly tended to reduce its interventions infavour of a self-regulating system.

Primary care

1.24 All ambulatory care, including both primary care andout-patient secondary care has been organised almostexclusively on the basis of office-based physicians.Their premises, equipment and personnel arefinanced by the physicians' associations. Ambulatoryphysicians offer almost all specialties with alltechnical equipment up to MRI scanners. BesidesGPs, the most frequented specialists are internists,gynaecologists and paediatricians. They are paid on afee-for-service basis. All treat public and privatepatients. There is no formal gatekeeping system aspatients are free to choose their doctor.

In-patient/secondary care

1.25 Except in emergency conditions, access to in-patientcare requires a referral from an ambulatory physician.Hospitals are public and private (for-profit and not-for-profit). They are staffed with salaried junior doctors andfee-for-service senior doctors.

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■ Mandatory Health Insurance 237■ Mandatory long-term care insurance 10■ Pension Fund 39■ Mandatory Accident Insurance 16■ Private Health Insurance 26

■ In-patient Care 123■ Ambulatory Care 87■ Medical Goods (including denture) 82■ Other benefits 67

Benefits-in-kindBenefits-in-cash

(income transfers)

Source: OECD Health Data 2002

Financing of healthcare in Germany, 1995 (Values in Billion DM)1.5

General Government

98

Public and private

employers198

Private households

211

Private households

Expenditure on administration

NOTE

The benefits-in-cash which are not included in most of the diagrams are included here.

6 57 35

61

12116172 39

26247

55

Source: Adapted from Federal Office of Statistics, 1998

Italy1.26 The main providers are local health units (consisting of

health districts, hospitals and health promotiondivisions), public hospital trusts and private accreditedhospitals, Figure 1.6. Local health units are responsiblefor maintaining the balance between the fundingprovided by the regions and expenditure for service.

Role of the Government

1.27 Regional government, through regional healthdepartments, is responsible for ensure the delivery of abenefit package through a network of local health unitsand public and private accredited hospitals.

Primary care

1.28 Primary care is provided by general practitioners,paediatricians and self-employed and independentphysicians working alone under a Government contractwho are paid a capitation fee based on the numbers ontheir list.

In-patient/secondary care

1.29 Access to secondary care is through a GP referral.Referred patients are free to choose their provideramong those accredited by the health service.Specialised ambulatory services are provided either bylocal health units or by accredited public and privatefacilities with which local health units have agreementsand contracts.

1.30 In-patient care is provided by hospitals. The majorhospitals are given the status of independent trusts. Therest of the public hospitals are kept under the directmanagement of local health units. Hospital physiciansdelivering secondary care earn a monthly salary.

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Ministryof Health

Regional healthauthorities

Preventative care

Clinics

Population and Enterprises

Patients

Source: OECD Health Data 2002

Financing of healthcare in Italy, early 1990s1.6

Treasury

Private insurance companies

Supplemental health funds

Private structures

PharmacistsSpecialists

operating withinthe NHS

'convenzionati'

Hospitalsunder contract to NHS

and nursing homes'convenzionati'

Generalpractitioners

Local HealthOffices (LHO)

Public hospital service

PrivateService

Other care*

of which: the main services

Compulsory Tax subsidies

NOTE

* Out-patient care, household advisory bureau, therapeutic appliances and thermal services, care for poor people, for Italians wholive abroad and for foreigners who live in Italy.

Private insurance

premiums

Health funds

Reimbursements

to patients

Reimbursements

to patients

Reimbursements

of privatesector to patients

Reimbursement of patients

Pay beds and intramural professional activity

Prescription charges

Directpayment

Budgets

Prescription charges

Listprices

Salary Per diem Capitation

social

contributions

Payments to

Source: Salvini, R. (1991), Il sistema sanitario italiano, ISPE, not published and Hoffmeyer et al, Financing Health Care, Romel, NERA 1994.

Japan1.31 Japan's healthcare system offers universal coverage and

stresses preventative care. Provision is mainly private,with 80 per cent of Japan's hospitals and 94 per cent ofits physician run clinics being privately owned, Figure 1.7. Investor-owned for-profit hospitals areprohibited. Patients are free to select care providers.

Role of the Government

1.32 The Japanese Government acts as regulator and insurer.It determines a fee schedule in consultation withproviders and consumers. All doctors receive the samesalary regardless of experience. It also subsidises healthcare spending for the elderly, small business employees,and the self-employed.

Primary care

1.33 Physicians have no formal gatekeeper function. Most arein private practice and are paid through a uniform feeschedule. Medical and pharmaceutical practices areoften combined, and a large proportion of physicians'incomes is derived from prescriptions.

In-patient/secondary care

1.34 Hospitals are mainly private, although there are somepublic ones. Hospitals combine acute and long-termcare functions and are paid according to a uniform feeschedule. Hospital based physicians are salaried.

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Insurersfor Employees

(Society-Managed HI & Government-Managed HI)

Insurerfor Government Employees etc.

Insurersfor Self-Employed

(National HI)

Population

Patients

Source: OECD Health Data 2002

Financing of healthcare in Japan, early 20001.7

Employer

Government

Social Insurance Medical Care

Fee Payment Fund

Contributions (41.7% of THE

or 52.9% of NME in 1998)

Subsidies(25.4% of THE

or 32.2% of NMEin 1998)

transfers

Reviews & Payments (67.1% of THEor 85.1% of NMEin 1998)

SubsidiesTaxes

Public Health Programmes

Health Centres

Health ServiceFacilities for Elderly etc.

Doctor's Clinic

Pharmacy

Hospital(Including

special function hospitals, geriatric

hospitals)

(Half the cost for elderly care

except copayment)

mixed payment (half the cost for

elderly care except for copayment)

fee-for-service

fee-for-service

fee-for-service

Financial flowsService flows

Patient Copayment(11.7% of THE

or 14.8% of NME in 1998)

and non-covered services

Medical Aid Programme etc.

New Zealand1.35 New Zealand's healthcare system covers all residents.

All essential services, including hospital and out-patient,are provided free through the public health system, withthe exception of dentistry and ophthamology. Publichospitals account for just over half the total bed stockincluding the large tertiary sector. The costs of primaryhealth care are met or subsidised for certain groups.About 40 per cent of the population hold concessioncards (usually low-income patients, children and higherusers of the services). Health services are delivered by amix of public and private providers, Figure 1.8.

Role of the Government

1.36 New Zealand's Government is a purchaser and providerof healthcare and has responsibility for legislation andgeneral policy matters.

Primary care

1.37 General practitioners act as gatekeepers and arepredominately private practitioners with two-thirdsworking in group practices. Patients have a choice ofGPs and are free to see more than one GP, although inpractice continuity of care is high. They provide mostprimary medical services. They are self-employed andare paid through a combination of payment methods:fee-for-service, partial Government subsidy, andnegotiated contracts with Health Funding Authoritythrough Independent Practitioner Associations.

In-patient/secondary care

1.38 Patients access secondary care via a GP referral.Specialist physicians and surgeons provide ambulatorycare in community-based public or private clinics or inhospital out-patient departments. Hospital out-patientdepartments play a larger role in the health systemthan in other countries since treatment is free while consultations with community basedpractitioners are charged.

1.39 Publicly owned hospitals provide most secondary andtertiary care, while the growing private sector specialisesmainly in elective surgery and long-term care. Publichospitals are not permitted to treat private patients.Hospitals are semi-autonomous Government ownedcompanies that contract with the Health FundingAuthority. Consultants are salaried.

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Ministryof Health

Population and Enterprises

Patients

Source: OECD Health Data 2002

Financing of healthcare in New Zealand, 19981.8

Central Government

Pharmacists*

IndependentPractitionersAssociations

Non IPA GPs and other independent

practitioners

Voluntary and Private Providers

Community Trusts

Private Hospitals

Private Insurance

* and other providers such as laboratories and radiology clinics** relating to contracts with the Health Funding Authority

General Taxation

Levies/Premiums

copayments

Accident compensation

corporation (ACC)

Hospitals and Health Services

(HHSs)Fees

Fees

Fees

Reimbursement

Broad risk related premiums

contracts/subsidies**

capitation budgets and

fee for service subsidies**

fee for service subsidies/

budget-holding capitation**

contracts

contracts

contracts

contracts

Health Funding Authority

Financial flowsService flows

Sweden1.40 Ambulatory care is provided by a mix of public doctors,

private doctors and hospital out-patient departments.Hospitals are publicly owned but have independentstatus, with the extent of privatisation varying betweencounties, Figure 1.9.

Role of the Government

1.41 The county councils are responsible for the purchasingof health services and either act as purchasersthemselves or devolve this responsibility to otherpurchasing agents.

Primary care

1.42 Patients can choose between primary care centres orhospital out-patient departments as the first point ofcontact. Higher fees are applicable for out-patient visitscompared to visits to primary care centres.

In-patient/secondary care

1.43 Patients can access secondary care directly through ahospital out-patient department. In many countiespatients can also select which hospital to be treated at,and in some cases, without referral. Most hospitals arepublicly owned.

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Source: OECD Health Data 2002

Financing of healthcare in Sweden, 19991.9

Private Health insurance

Home health care

Public hospitals & LT institutions

Public primaryphysicians

Public primaryhealth centres

Private general practitioners

Private medicalspecialists

Pharmacies

Social insurance board

Municipalities

Around 2% of health funds

Taxes & employer fees

National pay roll tax

General tax equalisation& grants

Around 72% of health funds - local payroll rax

Grants (weighted capitationless FFS payments)

21 County councils

National Government

Population and Enterprises

Patients

Cash benefitsReimbursements

and payments

Subsidised prices and prescribed out-patient

medications

Some central

purchasing agencies

Some devolved

district health authorities

Budgets

Salaries

Budgets Mixed payment systems

mainly FFS

FFS

FFS

United States1.44 Health care services are mainly provided by private

practitioners, Figure 1.10.

Role of the Government

1.45 The federal Government is the single largest health careinsurer and purchaser. There are two principal schemes inwhich the Government is involved: Medicaid andMedicare. Medicaid is a jointly-funded, Federal-Statehealth insurance programme for certain low-income andneedy people. It covers approximately 36 millionindividuals including children, the aged, blind, and/ordisabled, and people who are eligible to receive federallyassisted income maintenance payments. Medicare is ahealth insurance programme for people 65 years of ageand older, some disabled people under 65 years of age,and people with End-Stage Renal Disease (permanentkidney failure treated with dialysis or a transplant). Itcurrently covers some 39 million Americans.

Primary care

1.46 General practitioners have no formal gatekeeper function,except within some managed care plans. The majority ofphysicians are in private practice and are paid through acombination of charges, discounted fees paid by privatehealth plans, capitation rate contracts with private plans,public programmes, and direct patient fees.

In-patient/secondary care

1.47 In-patient care is provided in public and private hospitals(for-profit and not-for-profit). Hospitals are paid through acombination of charges, per admission, and capitation.

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47

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MedicareFederal Government

State Governments

State Medicaid Programmes

Physicians

Pharmacists

Source: OECD Health Data 2002

Budget/Trust Fund

Financing of healthcare in the United States, early 1990s1.10

CPC: Cost-per-caseFFS: Fee-for-serviceRBRVS: Resource-based relative value scale

Traditional Insurers

Managed Care Entities

Private Insurers

Budgets

Budgets

NegotiatedPrices

Patients

Tax-payers Consumers

HospitalsDiscounted FFSand CPC

Discounted FFSand CPC

RBRVS

CPC (DRGS)

FFS (Traditional)/Various Contracts(Managed)

Copayments &Out of pocketpayments

FFS/Formularies

Premiums

Reimbursement for Out of pocket/Copayments (e.g. Medigap) otherbenefits (e.g. pharmaceuticals)

(Mostly) Risk-Related Premia

Various C

ontracts (Managed)

FFS (Traditional)

General Taxation/Payroll Taxes

General Taxation

Co-

pay

& O

ut-o

f-Po

cket

Copayments & Out of pocket payments

Source: Financing Health Care, Volume II, Hoffmeyer et al., 1994

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Appendix 2 Death rates from the main cancers over time

Deaths from cervical cancer, 1980 to 19992.1

Source: OECD Health Data 2002

Australia Canada France Germany ItalyJapan New Zealand Sweden United Kingdom United States

0

1

2

3

4

6

5

7

8

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Dea

ths

per

100,

000

fem

ales

(st

anda

rdis

ed)

Australia

New Zealand

United States

Germany

France

Canada

Italy

Japan

United Kingdom

Sweden

INTERNATIONAL HEALTH COMPARISONS

49

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two

Deaths from breast cancer, 1980 to 1999 2.2

Source: OECD Heath Data 2002

Australia Canada France Germany ItalyJapan New Zealand Sweden United Kingdom United States

40

35

30

25

20

15

10

5

0

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Dea

ths

per

100,

000

fem

ales

(st

anda

rdis

ed)

Canada

United States

Germany

France

Australia

Italy

New Zealand

Japan

United Kingdom

Sweden

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Deaths from lung cancer, 1980 to 19992.4

Dea

ths

per

100,

000

of p

opul

atio

n (s

tand

ardi

sed)

Australia Canada France Germany ItalyJapan New Zealand Sweden United Kingdom United States

0

10

20

30

40

50

60

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

United States

GermanyFrance

Canada

Australia

ItalyNew Zealand

Japan

United Kingdom

Sweden

Source: OECD Health Data 2002

Deaths from prostate cancer, 1980 to 1999 2.3

Source: OECD Health Data 2002

Australia Canada France Germany ItalyJapan New Zealand Sweden United Kingdom United States

45

40

35

30

25

20

15

10

5

0

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Dea

ths

per

100,

000

mal

es (

stan

dard

ised

)

United StatesGermany

France

Canada

Australia

Italy

New Zealand

Japan

United Kingdom

Sweden