The cost effectiveness of the Maltese health sector : two case studies

Abstract

Malta's society is living within a challenging and changing environment. Demographically it is witnessing the transition from a young community to an elderly one. In 2020 one in four, dose to 100,000 people will be over sixty, thus exerting considerable amount on pressure on the welfare state and health care in general. Furthermore, issues such as an ever increasing welfare gap, consecutive budget deficits and a rising national debt have placed efficiency and cost effectiveness at the forefront of the public health sector. Government can no longer rely on increases in taxation in order to finance health expenditure. It must look inwards as well as make self-evaluations about Its deployment of resources to find ways to maximise available funds. Policy documents such as the Health Vision 2000 Issued by the department of Health Policy and Planning have laid out the foundations and direction for future reform action programmes. Given what is known about income distribution, demographic changes and government finance in Malta, the objective of this dissertation is to assess the cost effectiveness and efficiency of the public health sector. It will also analyse whether internal reforms and restructuring can lead to cost savings that enhance economic benefits. Analysis and research will be based on the case studies conducted at Mt Carmel and Boffa Hospitals. Evaluations will be made on financial audits, the respective cost structures and work-studies carried out by the respective hospital administrations. Given the inspection of each hospital's expenditures it will be possible to draw conclusions as to how one can improve 'value for money' without compromising the service that hospitals strive to offer.