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FOCUS ON HEALTH
September, 2014
Geographic Variations in Health Care
What do we know and what can be done
to improve health system performance?
Health care use varies a lot across countries but also within
countries. Some of the very large geographic variations observed
cannot be fully explained by differences in need or patient
preferences. Governments should step up efforts to ensure
better use of health services.
This report provides information on health care use for ten health
care activities and offers a range of approaches to promote the
delivery of more appropriate levels of care.
Geographic variations in health care use:
How large and why is it important?
Whether or not you receive a particular
health service depends to a very great extent on
the country in which you live – but also on
where you live within a country.
These variations are not fully explained by
differences in patient need or preferences.
Either too much care is being delivered in some
areas or patients are missing out on treatment
they need. Both imply that health systems are
not achieving the level of performance they
should. A range of policy options are available to
promote the delivery of more appropriate levels
of care.
Hospital medical admissions rates vary by twofold or more across and within countries.
As shown for a selected set of high-volume
and high-cost health care activities in 13 OECD
countries, wide variation in health care use
persists across and within countries, even after
adjustment for demographic differences (see
Box 1 on the scope of the OECD study and
methods). Hospital medical admission rates
(without surgery) are twice as high in Israel,
Germany or Australia (around or above 12 000
per 100 000 population over 15 years) than in
Spain, Portugal, and Canada, where they stand
at around or below 6 000 (see Figure 1).
In some countries, variations across
geographic areas are even larger than these
cross-country differences. In Canada, Portugal,
Finland and England, hospital medical
admissions rates can be two and three times
higher in some areas than in others.
Differences in the supply of hospital beds
explain some of these variations in some
countries: people are more likely to be
hospitalised where the supply of hospital beds is
higher. But the availability and quality of
primary care can also play an important role. In
Canada, hospitalisations for ambulatory-caresensitive conditions (i.e. conditions that could
be managed in primary care) are 60% more
frequent in rural areas than in urban ones. In
England and Canada, hospital admissions are
also more frequent in areas with social
deprivation. More can be done to reduce
avoidable hospital admissions.
FOCUS on HEALTH Geographic Variations in Health Care © OECD, September 2014
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Box 1. Coverage and analysis of health care activities
This report covers ten health care activities: hospital medical admissions, coronary bypass,
angioplasty, catheterisation, admission/surgery after hip fracture, knee replacement, knee arthroscopy,
caesarean section, hysterectomy, magnetic resonance imaging scan, and computed tomography scan.
Thirteen countries participated in this study: Australia, Belgium, Canada, Czech Republic, Finland,
France, Germany, Israel, Italy, Portugal, Spain, Switzerland, and England (United Kingdom). Countries
were given the flexibility to choose the most relevant and feasible geographic unit of analysis.
Data used in the report are drawn largely from hospital discharge databases and refer to 2011 or
the most recent year available. Utilisation rates are based on the patient's place of residence, with only a
few exceptions.
Procedure rates presented in figures 1-4 were standardised using the OECD population structure to
remove the effect of differences in population structure both within and across countries. The
standardisation by age and sex is expected to remove part of, but not all, the variation explained by
morbidity, especially for conditions which are age-dependant.
Measures of variations include:
- The crude rate is the number of cases observed in the country, divided by the country’s
population;
- The standardised rate is the arithmetic unweighted average of rates computed for a country’s
geographic areas, all standardised using the OECD population structure;
- Coefficient of variation: the ratio of the standard deviation to the mean of a procedure rate
across a number of given territorial units. The higher the coefficient of variation, the greater the
dispersion around the mean.
Figure 1. Hospital medical admission rate across and within selected OECD countries,
2011 or latest year
Note: Each dot represents a territorial unit. Rates are standardised using OECD's population >15 years. Countries are ordered from
the lowest to highest coefficient of variation within countries. Germany 1 and 2 correspond respectively to Länder and Spatial
Planning Regions. Canadian data do not include mental hospital admissions in general hospitals leading to a relatively small underestimation. Data for Portugal and Spain only include public hospitals. For Spain, the rates are reported based on the province where
the hospital is located.
Source: Authors’ estimates based on data submitted by countries for the OECD project.
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FOCUS on HEALTH Geographic Variations in Health Care © OECD, September 2014
The probability to receive a diagnostic
or surgical procedure also varies across and
within countries
After adjusting for population differences,
knee replacement rates are four times higher in
some countries than in others. Variations are
also large for cardiac revascularisation
procedures. They vary by more than three-fold
across countries and have the highest level of
within-country variation for more than half of
the countries in the study. MRI and CT scan
rates also show high variation both across and
within countries.
Knee replacement rates display very high
geographic variations
Knee replacement rates are on the rise in
many countries, due to increases in the
prevalence of osteoporosis and changes in
clinical guidelines. Over the last decade, they
have increased by 50% in Israel, 80% in Finland
and Spain, and have doubled in Portugal. In
most countries, variations across geographic
areas have increased or remained stable over
this period.
Knee replacement rates are four times
higher in Australia, Switzerland, Finland, Canada
and Germany (200 knee replacements per
100 000 people) than in Israel and Portugal (56
and 75 per 100 000 population, respectively).
Variations across geographical areas in
countries are also very large. In most countries,
knee replacement rates vary by two- to threefold across geographic areas. Variations are
larger in Canada, Portugal and Spain. In Canada
for instance, the region with the highest rate
(397 per 100 000 population) counts more than
five-fold more knee replacements than the
region with the lowest rate (70 per 100 000).
Here again, variations are not all explained
by medical needs. Instead, medical practice styles
(in Canada and the United States) or demand
characteristics have an influence. Studies using
regional data have shown that people living in
areas with lower socio-economic status or lower
population density are more likely to undergo
knee replacement. Somehow paradoxically, a US
study using individual data shows that, after
adjustment by clinical need, people with lower
education are less likely to undergo knee
replacement. These conclusions raise questions
on appropriateness and access to this procedure.
Figure 2. Knee replacement rate across and within selected OECD countries,
2011 or latest year
Note: Each dot represents a territorial unit. Rates are standardised using OECD’s population over 15 years. Countries are ordered
from the lowest to highest coefficient of variation within countries. Data for Portugal and Spain only include public hospitals. For
Spain, the rates are reported based on the province where the hospital is located. Germany 1 and 2 refers respectively to Länder
and Spatial Planning Regions.
Source: Authors’ estimates based on data submitted by countries for the OECD project.
FOCUS on HEALTH Geographic Variations in Health Care © OECD, September 2014
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Caesarean section rates are on the rise
but show less variation in most countries
Caesarean section (c-section) rates have been
increasing over time in many OECD countries. They
only decreased in the last period in Italy and
Portugal, starting from relatively high levels.
C-section rates vary across countries; they
are as much as 50% higher in Italy, Portugal,
Australia, Switzerland and Germany (above 300
per 1 000 live births) than in Finland (181 per
1 000 live births).
Within-country, geographic variations for
c-sections are often lower than for other surgical
procedures studied in this report. Belgium has the
lowest level of variations, but the highest
provincial rate is nevertheless 30% higher than the
lowest one. C-section rates vary by two times
across geographical areas in Canada, Finland,
Germany and Switzerland, and even more than
three times across Spanish provinces. Withincountry variations are particularly high in Italy
where some provinces, especially in the south,
have rates six times higher than others.
While c-sections have been increasing over
the last decade in most countries, variations
across geographic areas either did not change
considerably (e.g. Canada, Czech Republic, Italy
and Spain) or decreased (e.g. France, Portugal
and Switzerland). Only Israel and Finland (to a
lesser degree) observed an increase in variation
across geographic areas.
Several studies suggest that variations in
c-section rates are not fully explained by clinical
needs, but also linked to supply and demandrelated factors. On the supply-side, private-forprofit hospitals have been shown to perform
more c-sections than public hospitals in France,
Italy, Spain and Switzerland. Physicians’ practice
styles play a role in the United States, while in
rural regions of Finland, high c-section rates
might be explained by the fact that small
hospitals do not have enough resources to cope
with potential emergencies. On the demand
side, women with high socio-economic status
tend to be more likely to give birth by c-section
in many countries. In Spain, this can be partly
explained by a more frequent use of private
hospitals by highly-educated women.
Unwarranted variations in c-sections are
certainly a cause of concern, from a medical
point of view (clinical guidelines recommend its
use only in case of need), but also from an
economic point of view (for payers, c-sections
are costlier than normal delivery). Italy, Spain,
France and England have already implemented
policies to reduce unnecessary c-sections (see
Box 2).
Figure 3. Caesarean section rate across and within selected OECD countries,
2011 or latest year
Note: Each dot represents a territorial unit. Rates are standardised using Italy’s population structure of live births according to the
mother’s age. Countries are ordered from the lowest to highest coefficient of variation within countries. Rates include emergency and
non-emergency caesarean sections. Data for Portugal only include public hospitals. Spanish data only include public hospital leading
to a 30% underestimation of caesarean sections. For Spain, the rates are reported based on the province where the hospital is
located. Germany 1 and 2 refers respectively to Länder and Spatial Planning Regions.
Source: Authors’ estimates based on data submitted by countries for the OECD project.
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FOCUS on HEALTH Geographic Variations in Health Care © OECD, September 2014
Variations in hysterectomy rates are relatively
high, in a context of declining use of this
intervention
The prevalence of hysterectomy is
generally decreasing in OECD countries thanks
to the introduction of less invasive treatment
practices. Hysterectomy rates declined in all
countries participating in this study, for example
by 11% in France, and 40% in Finland. However,
this trend was not uniform across geographic
areas.
The prevalence of hysterectomy is almost
two times higher in Canada and Germany (350
per 100 000 females) than in Israel, Spain,
Portugal or the Czech Republic (less than 200
per 100 000 females).
Most countries have two- to three-fold
variation across geographic areas. Canada and
the Czech Republic have higher levels of variation
(close to four-fold), due to some extreme values
in certain areas: nearly 400 in one region in the
Czech Republic and above 600 per 100 000
females in certain regions in Canada. In most
countries included in study, variations across
geographic areas were stable or increased.
Earlier studies and evidence gathered in
this report show that medical need does not
explain all the differences observed. Women
with low-education and low-income tend to
have higher rates of hysterectomies in some
countries (in Australia and England) but not in
others (Belgium, Italy). In Canada, rates were
lower in both the least affluent and the most
affluent neighbourhoods compared with
women in middle-income groups. Rates are
lower in rural settings than in urban settings in
Australia and Canada. In Canada this may be
due to greater access to other treatment
options for women living in urban areas. On
the supply-side there is no clear relationship
between density of health care supply (e.g.
gynaecologists and gynaecological beds) and
hysterectomy rates. Medical practice styles
have been shown to play a role in Canada.
While
the
overall
reduction
in
hysterectomies observed in this study suggests
that there may be greater convergence in
clinical practice among countries, high rates in
certain geographic areas continue to raise
questions about the appropriateness of care.
Figure 4. Hysterectomy rate across and within selected OECD countries,
2011 or latest year
Notes: Each dot represents a territorial unit. Rates are standardised using OECD's female population >15 years. Countries are
ordered from the lowest to highest coefficient of variation within countries. Data for Portugal and Spain only include public hospitals.
For Spain, the rates are reported based for the province where the hospital is located. Germany 1 and 2 refers to Länder and Spatial
Planning Regions.
Source: Authors’ estimates based on data submitted by countries for the OECD project.
FOCUS on HEALTH Geographic Variations in Health Care © OECD, September 2014
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Policy options to reduce unwarranted
variations in health care use
‘Soft touch’ policies, such as public reporting
and target-setting, can be catalysts for change
The primary objective of health policies is
to promote appropriate care, including by
responding better to patient preferences. A
number of interventions or initiatives can have
an impact on addressing unwarranted variations
in health care use.
Public reporting of geographic variations in
health care is a first step. Canada, the
Netherlands, Spain and the United Kingdom
already publish ‘Atlases’ of variations in health
care, building on the pioneering work of the
Dartmouth Institute for Health Policy and
Clinical Practice in the United States.
Table 1. A generation of atlases of health care variations
Country / producers
Description
United States (from 1996)
Dartmouth Institute for Health Policy
and Clinical Practice
Atlases cover common procedures and treatments and report activities by hospital
referral regions (HRRs) for the Medicare population (people aged 65 and
over).(http://www.dartmouthatlas.org/publications/reports.aspx.).
ICES Atlases cover procedures and conditions for the population of Ontario (most
populous Canadian province) (www.ices.on.ca)
Canada (from mid-1990s)
Institute for Clinical Evaluative
Sciences (ICES), Centre for Health
Services & Policy Research Atlas
(CHSPR), Canadian Institute for
Health Information (CIHI)
CHSPR Atlases cover on pharmaceutical prescriptions across Canada and British
Columbia (third largest province) (www.chspr.ubc.ca/research-area/pharmaceuticalpolicy).
Netherlands (from 1999)
RIVM Atlas covers public health indicators (www.zorgatlas.nl/).
National Institute of Public Health and
the Environment (RIVM), Scientific
Institute for Quality of Healthcare and
other partners
The Dutch Atlas of Healthcare Variation report data on variations in medical practice
at the provincial and municipal level for a range of procedures
(http://emc3dev.com/depraktijkindex).
Spain (from early 2000)
Atlases cover many procedures. This initiative was concurrent with changes in the
devolution of health care organisation and delivery to the regional governments and
allowed for comparative analysis of variations across the country
(www.atlasvpm.org/).
CIHI reports on variations in selected surgical procedures, hospitalisations and
diagnostic procedures, wait times, health status and health outcomes (www.cihi.ca).
Atlas of Variations in Medical Practice
in the Spanish National Health
System
Belgium (from 2006)
The Belgian Healthcare Knowledge Centre published a one-off atlas on a selected
set of procedures in 2006, with analyses of determinants of variations
(www.kce.fgov.be).
Belgian Healthcare Knowledge
Centre, Ministry of Health
The Ministry of Health annual Atlas of pathologies is published by district in hospital
admissions for a large number of conditions (www.health.belgium.be)
United Kingdom (from 2010)
The first NHS Atlas covered more than 30 procedures covering 17 service areas
(e.g. cancer, organ donation, diagnostic services) and a number of thematic atlases
have been published (e.g. children and young people, kidney disease, diabetes)
www.rightcare.nhs.uk/index.php/nhs-atlas/
NHS Right Care
Australia (from 2010)
New South Wales Health Care Atlas
Germany (from 2011)
Bertelsmann Foundation,Institute of
Statutory Health Insurance
Physicians
The first New South Wales Health Care Atlas published information on medical
practice variation across Area Health Service (AHS), based on public and private
hospital data, for the period 1 July 2005 to 30 June 2008, (www.atlas.nsw.gov.au/).
The Bertelsmann Foundation produces atlases which include age- and sexstandardised rates for a number of inpatient procedures and activities at the county
level (412 counties /districts) and is part of its Initiative for High-Quality Healthcare
(https://faktencheck-gesundheit.de/english-summary/).
The Institute of Statutory Health Insurance physicians has undertaken analyses on
different regional levels mainly on outpatient care-related activities (e.g. antibiotic
drug prescriptions, prevalence of depression, utilisation of screening and office
visits). “Versorgungsatlas” (healthcare atlas) (www.versorgungsatlas.de).
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FOCUS on HEALTH Geographic Variations in Health Care © OECD, September 2014
These atlases identify potential under or
over-use, and raise questions about why such
variations take place. Atlases provide the basis
for starting discussions and actions involving key
stakeholders, notably health care providers, as
to why these variations exist and what should
be done to address them.
improve transparency and consistency in
decision-making for coronary revascularisation.
Where relevant, target setting may help to
steer health care towards more appropriate
levels. For instance, Belgium developed with
stakeholders a strategy to reduce exposure to
ionising radiation from imaging tests by 25%,
with a regional monitoring.
Comparing
patient
outcomes
across
geographic areas or over time helps to assess the
appropriateness of care. Over-utilisation of health
care can lead to diminishing outcomes. Sweden and
the United Kingdom have led the way by collecting
systematically patient outcomes after certain surgical
procedures such as knee and hip replacement.
Policies targeting providers can improve
the appropriateness of care
The development and monitoring of clinical
guidelines is a key policy lever to standardise
clinical practices. In almost all countries,
physician societies and/or health authorities
have produced clinical guidelines for many of
the procedures examined in this project. The
public expenditure constraints that have
recently affected health systems have given an
additional impetus to the development of such
guidelines. Rigorous monitoring systems may
help to promote compliance with the
established standards.
In Finland, for instance, the decline in
overall hysterectomy rates coincided with the
publication of results from a Finnish randomised
controlled trial which influenced the national
clinical guideline. However, lower surgery rates
have not led to lower regional variation, for
example, in Finland and Canada. In Germany,
the rate of hysterectomies is monitored through
a mandatory reporting scheme which
encourages discussion among stakeholders but
no particular action has occurred thereafter.
Provider-level reporting and feedback,
which can be delivered privately to reduce
resistance from providers, shows promising
results.
In Canada, a recent report by a Cardiac Care
Network on variations in the ratio of coronary
bypass to coronary angioplasty across different
hospitals in Ontario identified opportunities to
Shared decision-making between patients
and
providers and
patient
outcome
measurement are key to reduce unwarranted
variations
The diffusion of decision aids for patients can
help patient preferences to be taken into account.
The United States and the United Kingdom publish
decision aids for a range of procedures (e.g., knee
replacement). These tools complement information
provided by physicians and help patients assess the
potential benefits and risks of different treatment
options. In some cases, they can reduce the use of
resource-intensive interventions.
Box 2. A mix of approaches show promise
for caesarean section
Italy set regional targets for c-section rates
which probably contributed to the reversal of
trend in c-section rates in 2012 in the provinces
with the highest rates.
In Spain some hospitals used a tool to
assess the need for caesarean sections, which
led to a small reduction in their use.
In Belgium, hospitals received feedback on
variations in c-section rates, which led to a
convergence in rates among hospitals with both
high and low rates.
A few countries have introduced financial
incentives to reduce the use of unnecessary
c-sections. France reduced the gap between the
prices paid by health insurance for c-sections
and normal delivery, while England decided to
align the prices of the two procedures. Korea
implemented a pay-for-performance scheme for
hospitals, which slightly reduced c-section rates.
FOCUS on HEALTH Geographic Variations in Health Care © OECD, September 2014
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Did you know?
¾ Hospital medical admissions rates are twice as high in Australia, Germany, and Israel than in
Canada, Portugal and Spain. They also vary by two-fold or more across geographic areas of a
country.
¾ Knee replacement rates are up to four times higher in Australia, Switzerland, Finland, Canada and
Germany than in Israel. They also vary across geographic areas of a same country, often by twoto-three folds and up to five-fold across Canadian regions. These variations are influenced by
physicians practice styles and socio-economic characteristics of the population.
¾ The probability of giving birth by c-section is 50% higher in Italy, Portugal, Australia, Switzerland
and Germany than in Finland, even after adjustment by the age of the mother. Variations in
c-section rates are particularly large across Italian provinces (up to six-fold). C-section rates are
higher in private settings and for women with higher economic status.
¾ Cardiac procedures vary by more than three-fold across countries and have the highest level of
variation for more than half of the countries included in this study. They are particularly high for
coronary bypass in Spain and Portugal. Revascularisation procedures are lower among people
living in regions with low density, low level of education and low-income.
¾ The prevalence of hysterectomy is 75% higher in Canada and Germany (350 per 100 000 females)
than in Israel, Spain, Portugal or the Czech Republic (less than 200 per 100 000 females). Most
countries have two- to three-fold variation across geographic areas, but the variation is around
four-fold in Canada and the Czech Republic. Hysterectomy is more frequent in women with loweconomic status, especially when physicians have greater discretion.
Further Reading
OECD Health Working Paper No. 61 International Variations in a Selected
Number of Surgical Procedures.
Corallo AN, Croxford R, Srivastava D,
Goodman DC, Stukel TA (2014)
"A systematic review of medical
practice
variations
in
OECD
countries", Health Policy, Vol. 114,
pp.5-14.
Contacts
Divya Srivastava
Email: divya.srivastava@oecd.org
Tel: +33 1 45 24 16 36
How to obtain this publication
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library.
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ISBN: 9789264216594
DOI: 10.1787/9789264216594-en
Valérie Paris
Email: valerie.paris@oecd.org
Tel: +33 1 45 24 80 29
http://www.oecd.org/els/health-systems/medical-practice-variations.htm
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FOCUS on HEALTH Geographic Variations in Health Care © OECD, September 2014