Dr. Jonas Schreyögg

1. Identifying European answers to European problems: the contribution of the EUHealthBASKET project Dr. Jonas Schreyögg Dept. Health Care Management, Technische Universität Berlin(WHO Collaborating Centre for Health Systems Research and Management) & European Observatory on Health Systems and Policies

2. Reasons for importing health goods and services in EU-member states • Person wants to live (with his/ her family) in Country A but to work in Country B. • Person from Country A happens to be in Country B (for tourism, business ...) when he/she falls ill and needs treatment. • Patient from Country A needs go to Country B for treatment as it is not available in Country A. • Retired person from Country A wants to live in Country B (including receiving health care there). • Patient from Country A wantsto go to Country B for treatment: to bypass waiting lists of Country A (time), because of perceived higher quality, because of lower treatment costs (e.g. high co-payments for dental treatment in home country)

3. Quantifying in- and exports of health goods and services in EU-member states Goods and services (export) Country B Country A Benefit Package AusingService Taxonomy AandFee Schedule A Benefit Package BusingService Taxonomy BandFee Schedule B Goods and services (import)

4. Trans-border care (here: imported goods and services in €/capita):negligible or under-counted?Source: Palm et al. 2000

5. Foreign EU patients treated annually in 2000/01: exports ? Skiing accidents? No data: D, GR, P Commission staff working paper, July 2003

6. Germany: Imported goods and services – hardly any growth Ca. € 5.40/capita Ca. € 4.70/capita

7. Average volume of in- and exports is apparently rather low, although a lot of volumes are probably not accounted for -> however, demand is probably much higher and efficiency reserves could be realised -> major reason for low volumes is that actors, policy makers and patients lack accurate information on: • benefit catalogues, their taxonomy and inclusion criteria in each country • costs and prices of goods and services

8. HealthBasket Project(funded under the 6th Framework) Duration: 04/2004-03/2007 Scientific coordination: Department Health Care Management/ Berlin University of Technology (Prof. Dr. Reinhard Busse)

9. HealthBasket Project Phase I – How are benefit baskets determined and which services are included? 3. Cost coverage (Height) 2. Service Coverage (Depth) 1. Population Coverage (Breadth)

10. HealthBasket Project Phase I – How are benefit baskets determined and which services are included? • No country has one uniform catalogue; it‘s rather a mixture of differently defined lists • Taxonomy differs largely from country to country (even if many use e.g. DRGs and other grouping systems) • Only small variation of provided benefits between countries – most countries exclude similar benefits: cosmetic surgery, vaccination for non-standard diseases (e.g. for travelling purposes) and certain non-conventional treatments (e.g. acupuncture) • variation might be even larger within countries due to decentralisation processes e.g. in Spain and Italy

11. HealthBasket Project Phase I – How are benefit baskets determined and which services are included? -> The example of inpatient care • France, Poland and Spain have defined explicit inpatient benefit catalogues, listing detailed procedures/ in other countries DRGs- and other grouping-systems (e.g. HRGs in UK) serve as implicit tool for defining maximum resource consumption • Regional variations of explicitness in Italy and Spain e.g. Italian state of Lombardy added three new DRGs to its system in order to specifically consider the use of drug eluting stents (DES) and to encourage its utilisation • decision criteria for the inclusion of benefits are in most cases officially announced, but seldom applied/ in reality inclusion decisions are rather guided by lobbyism of actors

12. HealthBasket Project Phase II – how are services priced and how are prices determined? • Most countries have already installed performance-based remuneration schemes for in- and outpatient services, while they are often lacking for long-term care, rehabilitation etc. • There is a clear trend towards the use of micro-costing data (especially for inpatient services) to determine remuneration rates, reflecting the real costs of providers -> problem: insufficient quality of data delivered by providers • Information on the applied criteria/methodology for determining remuneration rates is sometimes not publicly available -> discouraging possible investors -> Phases I+II created a sound basis for phase III as the core of the project

13. HealthBasket ProjectPhase III – Calculation of costs and prices for defined service packages and analysis of differences • 12 episodes of care e.g. hip replacement, appendectomy, cataract etc. are defined as service packages • To ensure comparability of service packages, each package is divided into detailed path components e.g. diagnostic procedures, care before operation etc. • To ensure homogenous patient groups, indication and risk of each patient is defined in detail for each package • Partners in each country calculate costs and prices for service packages with data from 10 representative providers -> Finally costs and prices are compared and differences are analysed

14. How could this influence European health systems? (1) The EU-HealthBASKET project will achieve more transparency regarding benefits and costs in the EU-member states and thereby provide useful information for… • decision makers on all levels of health policy to compare different approaches of benefit definitions and to make use of different cost/price levels in order to contain costs • health care providers and industrial companies willing to invest in EU-countries (e.g. actual decision criteria for benefit inclusion) • patients to enable evidence-based choice (e.g. ECJ rulings on Kohll/ Decker, Peerbooms etc., E112) Finally it will contribute to the Europeanisation of health care systems and increase competition between European member states

15. How could this influence European health systems? (2) This might in the medium-term probably lead to... • the establishment of coherent benchmark criteria as part of the Open Method of Co-ordination, • a European minimum basket of health benefits (but not equal prices), beyond this allowing regional variations reflecting differences of wealth and of preferences, • Europe-wide rules/ standards for accreditation and quality assurance, • Europe-wide diagnosis/ treatment guidelines. This could make Europe more concrete for its citizens and help to remove the conflict between markets and the social welfare model.

16. This presentation and more material can be found on http://mig.tu-berlin.de and www.healthbasket.org