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Expenditure on the NHS in Perspective
Author(s) -
Chalkley Martin
Publication year - 2000
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/1468-0319.00232
Subject(s) - health spending , gdp deflator , economics , inflation (cosmology) , perspective (graphical) , gross domestic product , relative price , health care , quality (philosophy) , public economics , monetary economics , macroeconomics , economic growth , health insurance , physics , artificial intelligence , theoretical physics , computer science , philosophy , epistemology
In the wake of the recently‐announced increases in health spending, Martin Chalkley reviews the record of health spending in the UK both historically and comparatively. It is clear that prices paid by the NHS have increased more than prices in general, and once this is allowed for then it appears that real health spending today is only twice that of 50 years ago as compared with the fourfold increase suggested when using a general price deflator. Such differential inflation is obviously not a problem which is confined to the UK, and it does add considerably to problems in making proper comparisons between levels of health spending in different countries. In spite of these difficulties, it seems that compared with many other developed countries, health spending in the UK as a proportion of GDP is modest. So, looking ahead, there is some way to go before the UK attains the levels of spending achieved in many other countries. But understanding the reasons for relative price changes is vital if any proposed increases in spending is to be translated into increases in the quantity and quality of services provided.