Demographic Indicator Systems of Health Care Needs

Abstract

Concern over inflation in the health care sector must, if it is to lead to useful commentary, address itself to the factors that influence the level of health care expenditures. Observers whose concerns are to contain costs as painlessly as possible tend to focus on factors that are products of particular policy choice. Presumably, the intention is to select the policy option or options which could cut “fat” from the systems, thereby lowering expenditures without adversely affecting quality and which would promote efficiency in the delivery of health care. This focus is wholly appropriate; policy makers should be aware of all of the tools at their disposal to shape and develop the health care system, and what effects their past use of these tools has had. They should know of the effects of various reimbursement systems, and of different strategies for capital investment in new technologies. Familiarity with these factors leads to a broader understanding of the alternatives open to policy makers, and, quite possibly, more insightful policy.