International specialist points out strategies for controlling the increase in healthcare spending

Spanish consultant advises sector on increasing spending due to the aging population, a worldwide reality that increases the time spent in both private and public systems.

Investments in preventive medicine, outsourcing of services in hospitals, upgrading of purchase systems and the integration of both private and public administrations.

These are some of the strategies adopted against the increase in healthcare spending resulting from the aging population, a worldwide fact. The plans are presented by Spain’s healthcare management specialist, Julio Villalobos Hidalgo, during an interview for Bionexo.

In Spain alone, the healthcare budget has tripled in the last 20 years. Currently, 8.1% of Spain’s GDP (Gross Domestic Product) is invested in healthcare.

The aging population (which increases the time period people use the healthcare system) and technological implementations are the leading factors that bring about the increase in healthcare spending. According to Villalobos, 48% of hospital spending go to patients who are older than 65.

Spain has one of the highest rates of elderly population in the world, losing only to Japan. In 2002, 22% of the population was aged over 60, and in 2050, they will reach the figure of 44%. According to Villalobos, In Spain, half of what people over 65 spend on is medication.

“The aging of the population is not a problem, but a fact, which portrays the advances in medicine. It’s a successful scenario, it means that people are living longer lives”, reflects Villalobos. The average rates for Spain’s aging population are higher than European rates. In 2002, 20% were older than 60, and in 2050 they will figure as 37% of the total population.

Strategies

The specialist assesses that Spain’s healthcare system infrastructure is very similar to that in Brazil, bearing differences in caretaking (resource application). As it is, he points out four strategies that have been adopted in Spain aimed at controlling the increase in healthcare spending.

According to him, investing in preventive medicine is an economic path which yields practical results. The second strategy is the integration of the support areas. In Spain, the integration of primary attention, hospital’s attention, socio-sanitary attention and mental health are in effect. “This will allow the population to obtain the best support possible, with lower cost”.

The increase of productivity in public systems is the third strategy suggested by Villalobos. The public network needs to expand its planning, which includes the improvement in the purchase system. The outsourcing of non-clinical systems (such as cleaning, purchases and snack bars) from public hospitals contributes to the increase in productivity and profitability.

The fourth strategy involves allying public administration with private administration, once public hospitals start having greater competitiveness.

Investment

“More focus on healthcare demands greater investment”, quotes Villalobos.
He stresses that one of the biggest problems public healthcare faces is funding. In Spain, the healthcare model is based on the public system, which is fueled by taxes.

From all that is invested in healthcare in Spain, 71% is public and 29% private. “In Spain, use of the private healthcare system is an alternative. Healthcare is guaranteed by constitutional rights.

Access to healthcare

For Villalobos, Latin American countries ought to seek European examples for healthcare efforts, which premise undivided attention to citizens, guaranteed by the state. According to him, it’s worrying to see the trend among these countries to try and resemble the USA’s model, which invest less than 20% of the GDP in healthcare, and leave 40% of the population unattended.

Well-being

The increase in spending due to the aging population affects all levels of the well-being society in Europe, involving various sectors, such as education, welfare and retirement, healthcare and aid for disabled people (counting on a specific services or aid within healthcare).

In Spain, 32% of people over 65 have some sort of disability and depend on medical care or on multi-disciplinary assistance. A new law in Spain, the Law of Attention on Dependency, increased focus on healthcare and includes this type of user to the public service.

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