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dc.titleSmarter Spending on Health Care: How can We Achieve more Health by Reducing Waste?
dc.contributor.authorGóngora, Pamela
dc.contributor.authorVecino Ortiz, Andres Ignacio
dc.contributor.authorCastaño, Ramón Abel
dc.contributor.authorMoreno Lopez, Carolina
dc.contributor.authorSaavedra, Ginna Paola
dc.contributor.authorGiedion, Úrsula
dc.contributor.orgunitHealth, Nutrition and Population Division
dc.coverageLatin America
dc.coverageThe Caribbean
dc.date.available2026-01-06T00:01:00
dc.date.issue2026-01-06T00:01:00
dc.description.abstractThis policy brief examines how Latin American and Caribbean countries can achieve better health outcomes with existing resources by reducing inefficient spending on health technologies and their use (HTUs). In a context of fiscal pressure and high levels of wasteestimated at 2040% of health expenditurethe document proposes a framework for strategic disinvestment that allows governments to identify, prioritize, and quantify low-value interventions, and reallocate those resources toward high-value services. The methodology combines expert consultations, literature review, and surveys to identify potential disinvestment candidates, which are then ranked by frequency of use and assessed using three criteria: relevance (potential savings), measurability, and modifiability. Using payer data, the framework estimates inappropriate use and its associated costs, and models potential health gainsmeasured in quality-adjusted life years (QALYs) and coverage expansionif those resources are redirected to cost-effective “best buys” in health. Proof-of-concept applications in Colombia and the Dominican Republic suggest that significant savings and health improvements are feasible, demonstrating how this approach can strengthen fiscal sustainability, efficiency, and equity in health systems. The brief concludes that strategic disinvestment is a practical and politically viable tool to support smarter health spending in the region.
dc.format.extent13
dc.identifier.doihttp://dx.doi.org/10.18235/0013891
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Smarter-spending-on-health-care-v05.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.relation.seriesCriteria Network
dc.subjectScience and Technology
dc.subjectHealth
dc.subjectHealth Care
dc.subjectConflicts Resolution
dc.subjectSaving
dc.subjectHealth Expenditure
dc.subjectNutrition
dc.subject.jelcodeI18 - Government Policy • Regulation • Public Health
dc.subject.jelcodeI11 - Analysis of Health Care Markets
dc.subject.jelcodeH51 - Government Expenditures and Health
dc.subject.jelcodeI10 - Health: General
dc.subject.jelcodeH40 - Publicly Provided Goods: General
dc.subject.jelcodeD61 - Allocative Efficiency • Cost—Benefit Analysis
dc.subject.keywordsHealth care efficiency;Strategic disinvestment;Low-value care;Resource reallocation;Cost-Effectiveness
dc.typePolicy Briefs
idb.identifier.pubnumberIDB-PB-00425
idb.operationRG-E1946
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