A Case Study on Health Care Financing Efficiency

Abstract

Due to the aging population, rapid increase in medical expenses, sustainability of government finances, access to health care, there are challenges for health care reform. This study aims to examine the financial system for medical security in Finland and Sweden, and to consider and draw policy mplications for efficiency of medical financial expenditure and management. In Finland, municipalities are primarily responsible for organizing and financing the healthcare system. It is increasing the economic burden of local governments, and a plan to change health care expenditure through Kela to direct support from the central government for public health services has been discussed, but the fiscal system remains complex. However, since the SOTE legislation has been passed, and changes should be carefully observed in the future. The Swedish medical system provides medical services to the residents using the local finances of the region. In terms of medical finance, this acts as an incentive for local governments to provide medical services that residents need within the scope of each year's tax revenue with high efficiency. The central government is seeking ways to manage the quality of services. By integrating treatment, caring, and welfare services into the municipality, the fragmentation of the delivery system is reduced, and the responsibility for payment for social hospitalization is also imposed, thereby reducing social hospitalization and providing appropriate care for the local community. It can be said that Korea is in a transitional period in the sustainability of health and medical finances, coupled with changes in the economy, society, and population structure. In order to prepare for the increase in financial demand to expand social welfare, it is necessary to prepare a plan to secure a sufficient tax base. It will be necessary to clearly separate the mandates and duties between the central and local governments so that they can focus on providing high-quality medical and welfare services for residents.