Policy Tools for Allocative Efficiency of Health Services

Health care should be provided efficiently, given the potential gains for patients and the population and the high cost of some kinds of care. Emphasizing the most cost-effective services can in principle attain the greatest health gains. Policies are implemented through tools available to policy makers, particularly those in government who can influence not only public expenditure and service delivery but also how private insurers and providers allocate resources among diseases and individuals.