HEALTH ACCOUNTS 2000 FOR PORTUGAL Health Accounts for

HEALTH ACCOUNTS -2000 FOR PORTUGAL

Health Accounts for Portugal - 2000 Project “Health Accounts for Portugal” was carried out for the year 2000 to answer two important needs: To meet the OECD requirements; To offer to policy-makers an important tool for basing analysis and decision.

Health Accounts for Portugal - 2000 Decision was taken to create a Working Group involving the two bodies of the Ministry of Health, the National Statistical Institute and one unit from the Ministry of Finance. On a first stage it was decided to compile a Health Account for the year 2000 on a bottom -up approach, according to the SHA Manual of OECD, in particular: Table 2 Table 3 Table 4 Table 5 (Current expenditure on health by function of care and provider industry) (Current expenditure on health by provider industry and source of funding) (Current expenditure on health by function of care and source of funding) (Total expenditure on health including health-related functions)

Health Accounts for Portugal - 2000 Changes considered in the classification breakdown presented on the tables due to domestic needs: HF 1. 1 (General Government, excluding social security funds) is shown differently from what is proposed in SHA: HF 1. 1. 1 – National Health Service; HF 1. 1. 2 – Public health subsystems; HF 1. 1. 3 – Other units. Also in HF 2. 1 (Private social insurance), private health subsystems are shown separately. Moreover HP 3 is presented in an aggregated way.

Health Accounts for Portugal - 2000 The work was based on the basic definition in SHA (Chapter 5) on the measurement of expenditure on health care. Total Expenditure on health measures the final use of resident units of health care goods and services plus gross capital formation in health care provider industries (institutions where health care is the predominant activity). Therefore the methodology used for the compilation is based on the identity : Expenditure in goods and services of health care (=) Goods and services produced / available to be used

Health Accounts for Portugal - 2000 Main Stages of the compilation process Project: Set up of the universe: creation of a data set starting with the classification of the units as providers and financers; Estimation of the output for the health providers by provider and by function of health care- transitional matrix; Estimation of the Expenditure by financer, by provider and by function of health caretransitional table; Conciliation of the data starting with table 3 to establish the level of Output/expenditure; Compilation of the tables.

Health Accounts for Portugal - 2000 Analysis was made to units one by one. Health Output on the providers side was measured according to the following groups: Market providers, except HP 4 Health Output = Σ Sales of goods and Services of Health Providers HP 4. 2 to HP 4. 9 Health Output (=) Value of the goods under HP 4. 2 to HP 4. 9 to be included in the actual final consumption (for sale at the retailers)

Health Accounts for Portugal - 2000 Market providers: Providers HP 4. 1 Health Output (=) Value of medicine sold in the pharmacies (excluding hospital pharmacies) Providers organised as self-employed and ownaccount workers: Health Output = volume of “additional employment” X average income

Health Accounts for Portugal - 2000 Non-Market providers: Health Output (=) Compensations of employees (+) Intermediate consumption (+) Consumption of fixed capital (+) Other taxes on production (-) Other subsidies on production (-) Non-health sales

Health Accounts for Portugal - 2000 Occupational medical offices: Health Output ( =) Average cost each type of medical care (X) Number of medical cases of each type Providers HP 6. 4 (Other private insurance): Output of Health Insurance (service charge of health insurance) (=) Total actual premiums earned (+) Total premium suplements (-) Total claims due (-) Change in actuarial reserves and reserves for with-profits insurance

Health Accounts for Portugal - 2000 Health expenditure by financer considered the following transactions related to health made by each financer: Current transfers (D 75); Tax deductions due to Health expenditure (negative D 51 by households); Social contributions (D 61); Social benefits other than social transfers in kind (D 62); Social transfers in kind (D 63 = P 3 for the nonmarket financers); Final consumption expenditure for households.

Table 3 Table 2 Table 4 Table 5 Health Accounts for Portugal - 2000 Process of conciliation of the tables (use of transitional tables): PROVIDERS ICHA-HP FINANCERS ICHA-HF Table 3 Table 5 Table 2 Table 4 FUNCTIONS OF HEALTH CARE ICHA-HC HEALTH-RELATED FUNCTIONS ICHA-HC. R

Health Accounts for Portugal - 2000 Limitations: It was not possible to breakdown HP 3 into a second level for consistency reasons of the data. Moreover the distortions increase in the conciliating process between the expenditure and production side. Homes for elderly care were excluded from the table due to the unavailability of data to extract the health care expenditure in these homes. Difficult allocation of some functions of health care. Deduction of the intermediate production for services rendered by own-account workers to providers that belong to NPI. Recording of expenditure of public and/or private health subsystems that are engaged both in financing health expenditure and also acting as providers.

Health Accounts for Portugal - 2000 ANALISYS OF THE RESULTS Health expenditure by financing source; Health expenditure by function; Current health expenditure by mode of production; Current health expenditure by provider and financing agent; Current health expenditure by function and financing agent.

Health Accounts for Portugal - 2000 Health expenditure by financing source (Total health expenditure = 100) Portugal, 2000

Health Accounts for Portugal - 2000 Health expenditure by function (Total health expenditure = 100 Portugal, 2000)

Health Accounts for Portugal - 2000 Current health expenditure by mode of production (Total current health expenditure = 100) Portugal, 2000

Health Accounts for Portugal - 2000 Current health expenditure by provider (Total current health expenditure = 100) Portugal, 2000

Health Accounts for Portugal - 2000 Current health expenditure by provider and financing agent ►Spending structure of financing agents

Health Accounts for Portugal - 2000 Current health expenditure by function and financing agent ►Functional structure of spending by financing agent

Health Accounts for Portugal - 2000 Current health expenditure by function and financing agent ►How the different functions are financed

Health Accounts for Portugal - 2000 Main ratios: Total expenditure on health as share of GDP: 9. 0% Share of current expenditure in total expenditure: 95. 7% Share of Gross capital formation in total expenditure: 4. 3% Public share in total expenditure on health: 64. 2% Private share in total expenditure on health: 35. 8% Total public expenditure on health, per capita: € 649. 18 Total Private expenditure on health, per capita: € 362. 40 Total expenditure on health, per capita: € 1011. 58

Health Accounts for Portugal - 2000 FUTURE WORK: For the next stages, a working plan is undergoing aiming: Compilation of health accounts for the years 2001, 2002 and 2003; Investigation of methodologies and sources to make improvements in the missing information and classifications; Compilation of table 10 (Total employment in health care industries); Compilation of table 8 (selected price indices for health care) We are still in a phase of defining schedules, priorities and assessment of the eventual needs of more resources (human resources, etc).