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Efficient Spending for Healthier Lives
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Efficient Spending for Healthier Lives

Chapter 8

Authors: Diana Pinto, Rodrigo Moreno-Serra, Gianluca Cafagna, Laura Giles Álvarez .

Latin American and Caribbean countries vary widely in terms of spending efficiency. Chile is the only Latin American country among the top 25 percent of performers

 

Highlights
  • Attaining universal healthcare will require not just more money for health, but more health per dollar invested
  • Improving spending efficiency can contribute to healthier lives without compromising additional resources.
  • Our findings suggest that 22 of 27 Latin American and Caribbean countries are in the bottom half of average efficiency rankings.
  • To improve efficiency, governments can improve institutions and governance, reinforce pharmaceutical policy and priority-setting, and offer comprehensive primary care.
  • There is room for efficiency improvements in the region. Latin American and Caribbean countries are on average less efficient than the OECD group.
Efficient Spending by Numbers
Evolución del gasto total en salud, 1995 – 2014

Efficient Spending for Healthier Lives

(Chapter 8)

Health systems have been a crucial driver of progress in health and well-being in Latin America and the Caribbean. Since 2000, service improvements such as the coverage of skilled birth attendance and immunization rates testify to citizens’ expanded access to vital health services. These achievements have paid off in terms of better health outcomes, as measured by the increase in life expectancy or the decline in mortality rates for children under five years of age. Nevertheless, much is left to be done to address unmet needs and health inequities as well as to shift the focus of care toward chronic illness, which currently accounts for nearly three-fourths of deaths and years of life lost due to premature death and disability. 

The case for continued investment in health is strong. Spurred by the Sustainable Development Goals (SDG) agenda, Latin American and Caribbean countries are implementing policies and programs aimed at achieving universal health coverage (UHC) —that is, ensuring that all people can obtain the services they need without suffering financial hardship (WHO, 2010). The commitment to ensure affordable access to high-quality health services for all requires that governments examine whether progress towards UHC can be met with current levels of health system investment and, if macroeconomic conditions allow, to mobilize additional resources and increase the fiscal space for health. 

Yet, as presented in Chapter 1, many countries in the region anticipate further budgetary restrictions. Consequently, policy must focus on improving the efficiency of health care by investing in interventions that achieve the best health results and implementing these interventions the right way. Attaining universal health care will require not just more money for health, but more health per dollar invested.

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Meet the Authors
Diana Pinto

Diana Pinto

Diana Pinto Masís, a citizen of Colombia, holds a DSc in Population and International Health from Harvard University. She is health lead specialist in the Social Protection and Health Division of the Inter-American Development Bank.

rodrigo

Rodrigo Moreno-Serra

Rodrigo Moreno-Serra, a citizen of Chile, holds a PhD in Economics from the University of York. He is an associate professor at the Centre for Health Economics of the University of York.

gianluca

Gianluca Cafagna

Gianluca Cafagna, a citizen of Italy, holds a PhD in Healthcare Management from the Sant’Anna School of Advanced Studies of Pisa. He is an associate professional officer in the Social Protection and Health Division of the Inter-American Development Bank.

laura giles

Laura Giles Álvarez

Laura Giles Álvarez, a citizen of Spain, holds two Masters Degrees in Economic Growth and Development from Carlos III University of Madrid and Lund University. She is a young professional at the Inter-American Development Bank.