Indicators of Health Care in the System of National Accounts

Indicators of Health Care in the System of National Accounts
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This presentation delves into indicators of health care within the System of National Accounts, discussing options for implementation, classifications of expenditures, and developments within and outside the SNA framework. Key areas explored include the System of Health Accounts 2011 (SHA 2011) and primary differences between SNA and SHA.

  • Health Care Indicators
  • National Accounts
  • SNA Update
  • Health Expenditures
  • SHA 2011

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  1. Indicators of Health Care in the System of National Accounts Presented by Dylan G. Rassier IARIW Digital Session on the SNA Update and Related International Standards August 26, 2020

  2. Area Group on Health and Social Conditions Ann Lisbet Brathaug (Statistics Norway) Elisabeth Hopkins (Statistics Sweden) Ciara O Shea (Central Statistics Office Ireland) Paolo Passerini (Eurostat) Maria Pettersson (Statistics Sweden) Dylan Rassier (U.S. Bureau of Economic Analysis) Lisbeth Rivas (International Monetary Fund) Rachel Soloveichik (U.S. Bureau of Economic Analysis) 2

  3. Objective Consider options for indicators of health care Embedded in the SNA core framework Extensions of the SNA core framework Options considered Implementation within the SNA central system Classifications of final consumption expenditures Health care products and supply-use tables Volume measures of health care Paid long-term social care services Developments outside the SNA central system Unpaid household production of care Changes required to SNA 2008 and SHA 2011 3

  4. A System of Health Accounts 2011 (SHA 2011) Well-developed framework for classifying health expenditures Health accounts provide a systematic description of the financial flows related to the consumption of health care goods and services. Foundation for recommendations on health indicators Three key classifications Functions Providers Financing schemes 4

  5. Primary Differences between SNA and SHA SHA 2011 Impute production for the value of health services covered by dependency allowances Final consumption SNA 2008 Excluded Unpaid household production Occupational health care 1) Purchased = intermediate consumption 2) Own-account = compensation 1) Manufacturers included 2) Retail output = retail margin Capital formation Retail sales of health products 1) Manufacturers excluded 2) Retail output = goods + retail margin Intermediate consumption R&D expenditures 5

  6. Classifications of Health Care SHA Annex A International Classification of Health Accounts (ICHA) Functions final consumption of health care Sets the boundary for health care Providers provision of health care Financing schemes funding of health care COICOP 2018 (division 06) Reflects restructuring to better align with ICHA COFOG 1999 (division 07) Has not been updated to align with COICOP 2018 Recommendation Update and harmonize ICHA, COICOP, and COFOG 6

  7. Health Care Products SHA Annex E Definition A health care product is the result of the interaction of capital, labour, and entrepreneurship in the production process, which has the primary purpose of improving, maintaining, or preventing deterioration of the health status of persons or mitigating consequences of ill-health. Provide policy-relevant detail for supply-use tables Not all Annex E products have CPC/CPA equivalents Three 2-digit categories and five 3-digit categories Lower tier categories Recommendations Review, update, and harmonize product classifications Compile supplementary supply-use table from health accts 7

  8. Volume Measures of Health Care Measurement methods Non-market activity: direct volume (output) approach Market activity: deflation approach Quality adjustment for direct volume measures Excluded from ESA over concerns of comparability Included in SNA if measures reflect service provided Country experiences (Eurostat, UK, U.S.) Quality adjustment has a meaningful impact on real growth Recommendation Continue research on quality of health care and best methods for reflecting quality change in volume measures 8

  9. Paid Long-Term Social Care LTC (health) and LTC (social) kept separate in SHA LTC (health) is within scope of health care LTC (social) is a memorandum item that includes IADL Line between LTC (health) and LTC (social) is fuzzy LTC (social) is also important for well-being Start with LTC (social) in SHA 2011 Add child welfare and others as relevant Recommendation Scope of indicators for well-being should include all health care and long-term social care 9

  10. Unpaid Household Production of Care Significant role in understanding well-being Guidance Note on Unpaid Household Activities Provides definitions and recommendations Include health care and long-term social care Cash transfers to households currently included in SHA production boundary Valuation based on time-use data or administrative data Recommendation Include imputed values for unpaid household production of health care and long-term social care in an SNA extension 10

  11. Indicators Embedded in the SNA core framework Final consumption expenditures with breakdowns by function, provider, and financing schemes Extensions of the SNA core framework Physical measures (e.g., employment) Supplemental classifications of private health insurance Unpaid household production Recommendations Review the SHA for relevant indicators based on final consumption expenditures Compile a list of relevant indicators based on extensions of the SNA core framework 11

  12. Changes and Supplements to SNA 2008 Primary changes Current classifications for SHA functions and providers need to be introduced to the SNA Own-account production of occupational health services that is currently included in compensation of employees should be imputed as secondary output and allocated to intermediate consumption Primary supplements Expand the production boundary to include unpaid household production of health and long-term social care Compile supplementary supply-use tables for health and long-term social care from SNA core supply-use tables 12

  13. Thank you! dylan.rassier@bea.gov 13

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