RESOURCE ALLOCATION
Efficient and equitable access to resources are means to good health for all
WHAT IS IT?
Resource allocation is the process of identifying and managing resources. These resources are distributed among populations, programs, and individuals. This process happens at macro- and micro- levels in society.
Publicly funded systems face budget constraints, and they have to decide how and where to distribute and employ funds. Funds that are given for a specific sector then must be distributed even further. In the health care sector, groups of individuals and institutions must decide how and where these funds should be distributed. This decision-making process occurs at multiple levels, and includes multiple entities, public and private, such as committees, hospitals, medical equipment, health insurance, health-related programs, etc. Institutions then have to decide how and where to distribute these resources and services to individuals and groups of people.
WHY IS IT IMPORTANT?
There is a rising demand for health care and public health goods and services worldwide, and resources in these domains of life have increased. In the United States, where health care spending is higher than in any other country and in any community in the world, individuals and institutions have to determine how to allocate funds and resources both equitably and efficiently simultaneously. This is because both the principles of equity and efficiency are essential for flourishing at the individual and collective levels. Health care and public health resources are precious means to health capability and flourishing. Wise choices have to be made to ensure that money spent on health care and health is used to the best of its ability. We need to stop and avoid wasting resources that are not allocated to their optimal use.
Resource allocation is a central part of the decision-making process in health. It impacts the equity and efficiency of health care and public health goods and services. It affects whether you have access to, and receive, quality health care and public health, indeed, it impacts your entire experience with the health care and public health systems.
WHAT DOES IT LOOK LIKE?
Health has a special moral status among humans, yet health care doesn’t fit the competitive model of supply and demand as other resources do in our free market economy. An efficient and equitable approach to resource allocation in health care and public health is critical. This will support our commitment to creating the conditions for people to flourish and pursue the lives they value.
Efficient and equitable resource allocation values health capability and human flourishing. All people will have the means to realize, improve, and maintain their individual health capabilities. It helps develop good health policy and health laws.
HOW DO WE DO IT?
Having high quality health care and public health, and other important resources, are essential to good health. Efficient and equitable resource allocation means that everyone who has a need gets that need addressed, but this is with as few resources as possible. This requires accurate estimates of the true costs of resources to precisely estimate economic costs. It then requires achieving health goals at minimal costs.
Resource allocation should be a priority when addressing problems like overcrowding in emergency departments and staffing levels in health care facilities in order to provide high-quality care. Individuals, providers, and institutions must work together to assess and advocate for allocation policies and procedures that are safe and fair. Health allocation decisions should be determined through a reasoned consensus and follow scientific and clinical evidence. For example, evidence demonstrates that the use of a few simple objective criteria to identify certain sicker patients and higher-risk groups can aid triage decisions. Health care and public health interventions for individuals and populations groups must be able to safely reduce unnecessary resource utilization.