The impact of activity based hospital financing on health care and mortality

• In the past decades, many developed countries have experienced reforms in the ways that hospitals get financed. Alongside these reforms, both health care expenditures and life expectancy have been rising in many of these countries.
• An important driver of a country’s hospital spending is the nature of hospital financing. In most OECD countries, hospital spending covers almost 30% of the overall health care expenditure.
• Studies using OECD country data estimated that there is a positive influence of health care expenditure on health
• This leads the hypothesis on how hospital financing may effect health care expenditure, hospital activity and, therefore, population health.