Efficiency and sustainability of public health spending in Brazil

ABSTRACT

Objective: This paper discusses issues related to the efficiency and sustainability of public spending on health in Brazil. Despite the achievements of recent decades, the Unified Health System (SUS) faces structural challenges with consequences on the access to public health services and on the financial protection of the population. Methods: The paper provides a brief overview of the public healthcare financing in Brazil over the last ten years and presents an efficiency analysis of the SUS public health spending, using data envelopment analysis (DEA) models for the years of 2013 and 2017. Results: In terms of public spending, the paradox that Brazil spends little but poorly on health still persists. Public expenditures on health are relatively lower than those observed in countries with health systems with similar characteristics, but public expenditures per capita grow at rates higher than the growth of gross domestic product (GDP) per capita. In terms of efficiency of public health spending, the analysis shows that there is potential to increase the efficiency of the SUS. In 2017, these inefficiencies amounted R$ 35.8 billion. In general, SUS primary healthcare (APS) is more efficient (63% and 68% in 2013 and 2017) than high and medium complexity care (MAC) (29% and 34% in the same years, respectively). Conclusion: Improving the efficiency of public spending on health is particularly important in the current context of low economic growth and strong fiscal constraints in the post-pandemic environment. Efficiency gains can be achieved with (i) scale gains in the structure and operation of hospitals, (ii) integration of care in health care networks, (iii) increased density and better distribution of the health workforce, (iv) change in mechanisms and incentives to link payments to providers and professionals to health outcomes, with the PHC as the organizer of the system, (v) innovations in the management of health service providers, with an emphasis on public partnership models and private companies (PPPs) . The consolidation of the SUS depends on public policies to improve the efficiency and quality of services provided to the population.