Government Health Expenditure and Public Health Outcomes: A Comparative Study among EU Developing Countries.

Mihaela Onofrei,Anca-Florentina Vatamanu,Georgeta Vintilă,Elena Cigu

doi:10.3390/ijerph182010725

Abstract

The aim of this paper was to empirically analyze the relationship between public health expenditure and health outcomes among EU developing countries. Using regression analysis and factor analysis, we documented that public health expenditure and health outcomes are in a long-run equilibrium relationship and the status of health expenditure can improve life expectancy and reduce infant mortality. Secondarily, we studied how the status of good governance, health care system performance, and socioeconomic vulnerabilities affect the public health’s outcomes in the selected countries. We found that the effectiveness of health and the way to reduce infant mortality or to improve life quality is directed conditioned by good governance status. Moreover, the consolidation of health care system performance directly improves the quality of life among EU developing countries, which indicates that public policymakers should intervene and provide political and financial support through policy mixes.

Highlights

The run-up of the global financial crisis deepened economic shocks, poses a threat to health system performance, and caused distortions in the allocation of public resources
The people’s needs for health increased and public health outcomes indicators are influenced by the dimension of public reforms and the related governance framework
Using regression analysis and factor analysis, we investigated the relationship between public health expenditure and health outcomes among EU developing countries

Summary

Introduction

The run-up of the global financial crisis deepened economic shocks, poses a threat to health system performance, and caused distortions in the allocation of public resources. As the quality of public health expenditure is reflected in health outcomes among countries, the co-movement and causal linkages between public health outcomes and healthcare expenditure depend on governments implication in providing a quality life for its citizens through a good health system, meaning that in times of vulnerabilities, the pressure is higher and require solid strategies in terms of revenue and expenditure [1]. Makina and Laytonb [6] revealed that the governments around the world responded to the COVID-19 crisis by aggressively deploying fiscal policy to boost health expenditure and the related public debt levels will put higher pressure on the governments around the world and will require concrete measures for fiscal consolidation. It is imperative for all countries to appropriately invest in their health sector to realize the linkage between longevity and benefits of the economy, but as Mohammad et al, 2018 revealed in their paper, the amount of spending should be managed by proper governance and adequate policies capable of streamlining public sector health funds

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