Even as government budgets shrink, medical costs continue to rise due to ageing populations and expensive new treatments. The World Health Organisation calculates global health spending at US$8trn, between 10% and 11% of global GDP. Kaveh Safavi, global head of healthcare at consultancy Accenture, estimates that healthcare spending increases 1-3% faster than the rate of economic growth. Governments know they must contain healthcare costs. This report looks at examples of successful initiatives to control healthcare costs while maintaining or improving medical outcomes.
The report, based on desk research and 13 in-depth interviews, reaches the following main conclusions:
- Prevention focusing on public education is a leading way to cut costs and improve outcomes
- Coordinating care and moving care from hospital to community settings is a second major approach to healthcare efficiency
- Central monitoring of medical practices, including setting standards for providers, also helps to contain costs and ensure uniformity in service quality
- Workforce productivity is becoming a central focus of efficiency efforts