what can the us learn from the french health care system?

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More Slides from Ed Dolan’s Econ Blog http://dolanecon.blogsp ot.com/ What Can the US Learn from the French Health Care System? Posted March 10, 2011 Terms of Use: These slides are made available under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics , from BVT Publishers.

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The French health care system places at or near the top in international rankings. It provides universal coverage at a significantly lower cost than the US system. This slideshow discusses possible lessons that can be learned from a comparison of the two systems.

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Page 1: What Can the US Learn from the French Health Care System?

More Slides fromEd Dolan’s Econ Blog

http://dolanecon.blogspot.com/

What Can the US Learnfrom the French

Health Care System?Posted March 10, 2011

Terms of Use: These slides are made available under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics

classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics, from BVT Publishers.

Page 2: What Can the US Learn from the French Health Care System?

Posted March 10, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

WHO Ranking of World Health Care

One of the most widely cited international rankings of health care systems was published by the World Health Organization in 2000*

France ranked No. 1, the US No. 37 of 190 countries covered

The ranking was based on a weighted average of measures of population health, distribution of health care, fairness of the financial burden, and efficiency

*For the full survey, see WHO, http://www.who.int/whr/en/. A convenient summary of the main findings can be found at http://www.photius.com/rankings/healthranks.html

Page 3: What Can the US Learn from the French Health Care System?

Posted March 10, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Amenable Mortality

A less subjective method of ranking health care systems is based on amenable mortality rates

This amenable mortality ranking also placed France at the top and the United States at the Bottom

Page 4: What Can the US Learn from the French Health Care System?

Posted March 10, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Coverage Choice in the French Health Care System

In addition to providing top-quality care, the French health care system combines universal coverage with a high degree of choice

Patients are free to choose their doctors, and for the most part, to visit specialists of their choice

Doctors are free to follow the course of treatment that they find most medically appropriate

A Hospital in Clermont-Ferrand, FrancePhoto source: http://commons.wikimedia.org/wiki/File:Sabourin.jpg

Page 5: What Can the US Learn from the French Health Care System?

Posted March 10, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Health Care Costs as Share of GDP

The total cost of the French health care system was 11.2 percent of GDP as of 2008

That is substantially less than US health care cost, but was still second-highest among OECD countries by this measure

Page 6: What Can the US Learn from the French Health Care System?

Posted March 10, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Health Care Costsin US Dollars per capita

The gap between US and French health care costs is even greater measured in US dollars per capita at purchasing power parity

France, ranking 11th in the OECD, spends just half as much as the US, ranking 1st

Page 7: What Can the US Learn from the French Health Care System?

Posted March 10, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Reasons for Lower Health Care Costs in France

Lower administrative costs due to simpler payment structure

More aggressive bargaining with providers on the part of government

Out-of-court malpractice system similar to US worker’s compensation

Lower physician earnings (about 1/3 of US level), with lower earnings for doctors offset by Free medical education No malpractice insurance fees How the US Health Care Dollar is Spent

Source: Centers for Medicare and Medicaid Services

Page 8: What Can the US Learn from the French Health Care System?

Posted March 10, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

The Bottom Line: What can We Learn from France?

The possibility of top-quality health care with universal coverage and a high degree of choice is a reality, not a utopia

France manages to provide such a system at lower total cost than in the United States

Although differences in doctors’ earnings and other factors might make it more expensive to run a French-style system in the US than in its home country, the French experience suggests that Americans are not getting their money’s worth from their health care dollars