The British One Size Fits All Healthcare Model should be abandoned

An IEA study argues that consumers should be given more control over healthcare and drugs.

An IEA study* published today argues that consumers should take more responsibility in the fields of healthcare and drugs. The study, edited by LSE health policy expert Tony Hockley, shows how, in a range of areas, producers rather than consumers have too much control over the allocation of resources. Hockley comments, “Healthcare systems worldwide are facing important challenges, as their users change from being impassive recipients of services determined by third parties to active and interested consumers…It is no longer tenable to assume that what is good for one person in one part of a country is good for another person elsewhere.”

The study attacks existing health models in the UK and suggests that giving consumers greater power will lead to more productivity and innovation. Britain’s model of state health provision resulted in British developments such as hip replacements, new forms of leg ulcer treatments and palliative care being denied to British patients whilst they were rolled out in the rest of the world. However, the study warns that consumer led healthcare may cost more money. Co-payment by patients may be necessary. However, co-payment will make patient-led healthcare provision even more effective.

Much of the study focuses on policy related to the pharmaceuticals industry and the provision of drugs. In the UK the National Institute for Clinical Excellence (NICE) has an increasing role in determining which treatments are offered to all patients nationwide. This approach is diametrically opposed to the consumer-led drugs policy that we should be following.

One part of the study uses the latest statistical techniques on Swiss data to show that, if consumers had control of their own spending on drugs, they would be willing to pay much more to obtain new innovative treatments: on average they would be willing to pay 25% of the cost of the cost of healthcare. However, consumers are much less willing to pay for patented treatments when