Public Health System Economic Efficiency and COVID-19 Resilience: Frontier DEA Analysis

Abstract

The article summarizes the arguments and counterarguments in the scholarly discussion about the problem of choosing a model of healthcare organization. The study’s primary goal was to identify the economic efficiency of the public health system and resistance to COVID-19. The relevance of addressing this research issue is that the epidemiological challenges posed by the pandemic worldwide have manifested themselves differently in various countries. Therefore, it is advisable to consider the effectiveness of public healthcare models and how they have worked out in the fight against COVID-19. Research in the work was carried out in the following logical sequence: conducting scientometric analysis of research, creation of a statistical research base for 22 countries of the world; construction of integral indices of the economic efficiency of the health care system; calculation of public health system resilience to the COVID-19 pandemic; application of frontier DEA analysis to determine system efficiency; comparison and analysis of the results of research on the economic efficiency of public health systems obtained by different methods. The article presents the results of a comparison of the economic efficiency of the public health system, which showed that the system built according to the Beveridge principle is the most resistant to the pandemic and, at the same time, has the highest indices of economic efficiency.

Innovative Development of the Health Care Sector of the Future in the Conditions of Modern Challenges of the Covid-19 Coronavirus Infection in Ukraine

“…Similarly, those nations who used the health care system model based on the concept of national insurance ranked second in terms of economic efficiency, with a level of 95.5%. Those nations who used the market model of health care system, in which the majority of money spent on medical services come from the population's own savings, had the lowest performance outcomes [30]. Total vaccination coverage in Ukraine indicated by WHO statistics were also low as compared to other countries in Europe showed poor and inefficiency of healthcare system of Ukraine [31].…”

“…Germany, Austria, Belgium, the Czech Republic, France, the Netherlands, and Switzerland used the Bismarck model. Canada, Australia, Italy, and Thailand used the national insurance model, while China, India, and Portugal used the market model [30].…”

“…This comparison analysis helped nations reforming their health care systems. Beveridge model was shown to be the most successful [30]. WHO provided Ukraine with approximately 65,000 pieces of personal protective equipment for the COVID-19 pandemic.…”

Healthcare System Efficiency and Its Drivers in Pre- And Covid-19 Pandemic Settings

“…However, the complexity of their analysis may challenge result interpretation, particularly for policymakers not familiar with the method. In another study, Kuzior et al (2022) categorized healthcare systems and found the Beveridge model performed the best, followed by the Bismarck and National Insurance models, while the Market model demonstrated the poorest resilience to the pandemic. However, clarity was lacking on data collection duration and specific COVID-related variables employed.…”

Determinants of labor productivity in the USA

“…For example, Ho (2015) used the prism of the impact of health insurance schemes on financing the needs of people in different countries. Spending on the public health system as a percentage of GDP can positively and negatively impact labor productivity and will depend on the specific nature of spending on the public health system (Kuzior et al, 2022a). On the one hand, increased spending on the public health system and access to new medical technologies improve health, increasing labor productivity (Horváth & Gyenge, 2023).…”