Budget allocation in EU-15 countries operating under tax-financed healthcare systems: the stalemate of the Greek NHS

Abstract

Resource allocation of public funds for healthcare is a major concern for policy makers, especially when resources are distributed on the basis of independent measures of needs and of satisfying equity and efficiency objectives. In order to achieve their equity objectives, the majority of European countries have applied capitation schemes, based on the specific needs of their health districts. The Greek National Health System (NHS) does not apply a capitation scheme for allocating its healthcare resources and continues to distribute on a historical basis. From the academic perspective, a weighted capitation model, which was intended to reduce geographical inequalities in the Greek NHS, has been proposed but has never been applied. Thus, the inefficiency of the current method and the international experience make the need for applying a capitation model for allocating healthcare resources in Greece imperative. In the current paper we review capitation schemes for European Union countries.