The Demand for Health Care and the Resulting Overcrowding - A Multiple Indicators and Multiple Causes Approach

University essay from Handelshögskolan i Stockholm/Institutionen för nationalekonomi

Abstract: In this thesis a Multiple Indicators and Multiple Causes model based on the framework by Grossman is applied in order to investigate causes of overcrowding in the Swedish health care system. The model comprises socioeconomic, lifestyle and organizational variables. Aggregated data on a county council level was analyzed in STATA and the results were at large statistically significant on at least a 10% level. Inequalities were found in the distribution of hospital beds between county councils, and in the relation between the objective need and actual utilization of inpatient care among different socioeconomic groups. Some of the organizational factors pointed to possible efficiency-enhancing measures, but it was concluded that directing patients to the right level of health care and enhanced equity in distribution of resources should be the primary focus.

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