Resource allocation in a public health system

Abstract

Three alternatives of resource allocation in a public health system are discussed. One concerned with an equity principle in relation with primary health care services; another which is the present situation of resource allocation, based on technical efficiency, of hospital resource allocation, in Portugal; and a third one which is a proposal for a future development based on allocative efficiency. It is concluded that the equity objective, relative to an equality of inputs for equal need, which concerns the proposal of resource allocation in primary health care services in Portugal, is the one which must be chosen in the present situation. Financial efficiency must not be by itself a principle of resource allocation in a public health system and it is proposed that the hospital care be financed according to an equity principle, as well. Finally, some further research is needed in order to implement a resource allocation proceeding based on a principle of allocative efficiency.