Health expenditures and health outcomes in Central Europe and the Baltic Region

Abstract

In Central Europe and the Baltic region, healthcare expenditure has been growing slightly faster than across the euro area and in OECD countries. However, health outcomes as re­gards chronic diseases prove to be modest in the euro area and OECD countries compared to Central Europe and the Baltic region. Panel data analysis and country-specific regres­sions were conducted using World Bank data spanning from 2000 to 2019. Evidence sug­gests a significant correlation between private and current health expenditures and reduced ­mortality from chronic diseases in males, females and the total population across the panel, leading to improved longevity. Yet, public health expenditure does not correlate with a sub­stantial reduc­tion in mortality or a higher lifespan among the population, whether consid­ered collectively or among males and females separately. Similarly, an increase in current health expenditure by one unit leads to significant reductions in mortality from non-com­municable diseases: by 29 percent in the total population, 22 percent in females and 36 per­cent in males. Public health spending in Lithuania and Russia has been shown to decrease mortality from non-com­municable diseases. Furthermore, chronic mortality is associated with a significant decline in labour productivity: by 42 percent in the total population, 40 percent in males and 45 percent in females. Therefore, interventions implemented through public health systems may reduce mortality from chronic conditions in the study countries.