Health Economics 2 Essay Example | Topics and Well Written Essays - 2750 words

Health Economics 2 - Essay Example Both of these systems address problems being faced in health care financing. With limited financial resources, the rationalization process which is seen in the casemix and the P4P system largely supports quality health services for as many people and patients as possible. P4P system – The Government of Hong Kong (2008) defines it as a system is an internal resource allocation system for hospital funding. They also discuss that it is about strategic purchasing services most needed by the community (Government of Hong Kong, 2008). Casemix system – Based on the Government of Hong Kong (2008), this system is an activity-based funding system where the provider is paid for each case which is treated, and adjustments are made based on the complexity of the case using pre-set classifications. Diagnosis-related groups – Diagnosis-related groups or DRGs are â€Å"based on the principle that diagnosis and other patient characteristics can be categorized in terms of the total quantity of resources used in treating patients† (Government of Hong Kong, 2008, p. 4) Health care systems for countries differ greatly from each other. The differences often depend on the system of government and social services existing in each country. Some countries are based on a socialist system where the health care system is dependent on the government’s support. In other countries, the citizens themselves have to cover for their health care with hardly any assistance from the government at all. Nevertheless, the point is proven that health care systems are different based on each country’s health applications. This paper shall compare the hospital funding system in Hong Kong known as the P4P system with the casemix funding systems in Victoria and New South Wales, Australia. It shall draw specific examples within the chosen health care system in order to