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Report on the work of the Task Force on Health PPPs

Report on the work of the Task Force on Health PPPs. Luca Lorenzoni OECD Health Division Working Party on National Accounts Paris, 15 October 2008. Contents of the presentation. The health PPPs Task Force. Current practices for hospital services and new methodological proposal.

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Report on the work of the Task Force on Health PPPs

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  1. Report on the work of the Task Force on Health PPPs Luca Lorenzoni OECD Health Division Working Party on National Accounts Paris, 15 October 2008

  2. Contents of the presentation • The health PPPs Task Force. • Current practices for hospital services and new methodological proposal. • Current status of the project and next steps. • A brief look at some preliminary results.

  3. The health PPPs Task Force Coordination of the TF with the Health Division and the National Accounts Division at the OECD. Objective: proposal for the amendment of the methodology concerning hospital services under PPPs data collection. Meetings: 8th June 2007 7th and 8th February 2008

  4. PPPs for hospital services • The input-price approach requires a breakdown of the expenditure on non-market services by cost component. • Compensation of employees - the component for which countries have to report - includes all payments in cash and kind made by general government in a year. • As an example, the average yearly physician costs can be compared across countries.

  5. PPPs for hospital services (cont.) • The output-based approach requires an allocation of the expenditure to products. • The cost components are the same as for the input-price approach, but they are allocated to cost objects. • As an example, the average costs of a pacemaker insertion can be compared across countries.

  6. New methodological proposal • Product identification: hospital product is defined in terms of the types of services that hospitals produce (called “case types”). • Product measurement: case types quantities are measured through electronic coded information available at hospitalization level. • Place a value on products: a unit (average) cost by case type is estimated using available results from cost finding studies.

  7. New methodological proposal (cont.) Case types identification - examples

  8. Current status of the project Pilot work to test the feasibility of the approach of estimating a unit (average) cost by case type with: Australia Canada France Korea Norway United States

  9. Next steps • 3rd Task Force meeting on 8-9 December 2008 in Paris. • Main contents: • Presentation of the preliminary results of pilot studies. • Discussion of the proposal for the amendment of the methodology.

  10. Preliminary results (1)Comparison between and 6 inpatient medical products: AMI; Angina pectoris; Heart failure; Malignant neoplasm of breast ; Normal delivery; Pneumonia. 12 inpatient surgical products: Appendectomy; Caesarean section ; Cholecystectomy; CABG; Endarterectomy; Hip replacement; Knee replacement; Quadrantectomy of breast; PTCA; Repair of inguinal hernia; Thyroidectomy ;TURP.

  11. Preliminary results (2)Comparison between and

  12. This project was also supported by a grant provided by the Directorate General for Public Health and Consumer Affairs of the European Commission

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