FLASH · Flexible Approaches to Support Health through financing

One of the lessons learnt from the Covid-19 pandemic is the importance of flexibility in funding and organization of health systems. European countries responded quickly to this extreme event, by expanding the amount of financial resources available for health care and reallocating financial and human resources. However, there are several other challenges for health care systems that require efficient and flexible financing mechanisms to be successfully addressed. This project undertakes a comprehensive analysis of health care financing mechanisms in Europe, by focusing on the two key stages of the process: i) budget allocation (e.g., among managing authorities, clinical areas), ii) financing of health services within a specific budget, through the definition of contracts and payment rules. We identify and examine the most prominent mechanisms underlying the relationship between the main challenges faced by health care systems (demand shocks, ageing, budget pressure) and their financing. By employing a wide range of methodological approaches, we provide evidence on the ability of existing financing mechanisms and contracts to address such challenges and study new solutions to achieve more effective, efficient and equitable health care systems.