Do individuals' health preferences validate the decentralisation of the public health system in Spain?

Abstract

The objective of this paper is to estimate individuals' preferences about public health services in two Spanish regions, the Basque Country (BC) and Canary Islands (CI) and analyse whether they differ. This work was motivated by the actual economic situation, where it is necessary to obtain equilibrium between the needed health services and limited economic resources. With this limitation in mind, politicians have tried to design health policies that maximise individuals' welfare. Based on the theory of decentralisation, the devolution of public expenditure decisions and management to regional government maximises individuals' welfare more when individual preferences differ among regions. A discrete choice experiment was implemented with a survey designed to obtain data about individuals' choices. Using this data and discrete choice models, individual preferences for health services were estimated. Our findings indicate that these preferences differ among regions, so, for reasons of efficiency, decentralising decisions and management of public health policies to regional governments would be recommended. Once health policies are decentralised, our results provide a tool for identifying the health services most valued by the individuals in each region. This information would be useful policymakers designing health policies.