THE FRAMING ROLE OF ACCOUNTING IN NEW HEALTHCARE REGULATIONS: ELEMENTS OF ANALYSIS FROM THE FRENCH AND ITALIAN CASES

 

                     Nathalie Halgand, Institute of Management - University of Nantes

Rue de la Sensive du Tertre - BP 62232 - 44322 Nantes Cedex 3 - France

Ph.: +33 662 038 950 - Fax: +33 662 034 992 / +33 2 40 74 61 83

E-mail: nathalie.halgand@iae.univ-nantes.fr / nathalie.halgand@wanadoo.fr  

Emidia Vagnoni, University of Ferrara - Faculty of Economics

Via del Gregorio, 15 – 44100 Ferrara (Italy)

Ph. +39 (0532) 29.30.14 - Fax +39 (0532) 20.53.07

E.mail: vagnoni@economia.unife.it

 

Abstract

Since the beginning of the eighties, European healthcare systems have been experiencing a deep ongoing reform process, resorting to quasi-market settings as a privileged regulatory means. This common framework inspired by the New Public Management theses leads to introduce competition between healthcare providers, were they public or private, and to shift the regulation power to the regional health authorities, even in traditionally hyper-centralised countries like France.

This new governance model generates increased needs for information to support the contracting-out process. The healthcare authorities have been developing various sets of criteria to assess both the efficiency and effectiveness of the healthcare services provided. The paper aims at highlighting the key role of accounting in this emerging regulation framework. It shows how the regulatory objective leads to develop managerial accounting techniques, urging the healthcare authorities to suggest a management control system to the hospital sites. Although the design of DRG-based accounting provides product tariffs required by quasi-markets, it raises problems at the regulatory level stemming from the lack of relevance of the cost objects in failing to capture the resource consumption processes. Some tentative solutions have then been developed and implemented for budgetary purposes, either at the central or at the local level, addressing the global system regulation issue.

The analysis of the French and Italian cases, which have both adopted the US DRG model for their quasi-market regulatory framework, helps identify the common features of what may become the leading integrated model for both regulating the production of healthcare services and controlling hospital sites in Europe. An in-depth study of the reform processes shows how the introduction of management techniques can meet the requirements of this new setting.

This work is part of a research program entitled AREHCAS (Accounting in the Reform of European Health Care Systems) and funded by the European Community. A earlier version of the paper entitled “Accounting as a Key Stone of New Public Management in Healthcare: A Comparative Analysis of the French and Italian Cases” has been accepted to the EAA Conference in Munich, March, 2000