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Chapter 10: Forward funded system for public healthcare system

P

Phani Vasantarao

Member
For this method to estimate fund required for public healthcare, why is estimating population and workforce trends the 4th step, and not the 3rd? Wouldn't outgo depend on population and workforce trends too?
 
Many of the outgoings would not vary depending on population. When setting the expected outgo (or budget) for various things, the State often inflates the previous year's expenditure. So, much of its spending (like defence or education) might not be too dependent on numbers of people (at least in the short-term for a relatively stable population). Some would be (like State pension payments) and this could be allowed for in the model.

This is often raised as an issue with NHS spending in the UK - the population is increasing but the NHS budget is not increasing by the same extent (although spending per captia has increased from 2003/04, it has flattened since 2009 and for the UK as a whole it was less in 2013/14 than 2009).

Hope this helps!
Sarah
 
Thanks, Sarah, that helps :) So it looks like the steps listed are better suited to developed economies with relatively stable populations, and if I ever get an exam question about a country with a fast-growing or fast-declining population, I would need to adjust my answer accordingly. Would you agree?
 
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