Principles of Capital Financing and Capital Charging in Health Care Systems
Most health care systems could improve their efficiency in using physical capital - buildings and equipment. Health care systems in which assets are provided by governments or donated by aid organizations generally have only weak incentives for tho...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5652828/principles-capital-financing-capital-charging-health-care-systems http://hdl.handle.net/10986/13751 |
| Summary: | Most health care systems could improve
their efficiency in using physical capital - buildings and
equipment. Health care systems in which assets are provided
by governments or donated by aid organizations generally
have only weak incentives for those assets to be used
efficiently. Wrongly located or inappropriate facilities,
poorly utilized and maintained, are a result. This
Discussion Paper summarizes the principles of effective,
efficient, and equitable capital financing and capital
charging in health care systems. It reviews the options for
putting these principles into practice and refers to the
limited literature on the impacts of those options. The
objectives, principles, and practicalities of implementing
capital charging arrangements are set out. The relative
benefits and costs of points along the following dimensions
are described and summarized: applying capital charges just
to newly acquired assets or also to those already in
existence; using notional or real capital charges; the time
profile of charges; and the asset valuation basis adopted. |
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