5. Promote cost competitiveness Providers must have the right incentives to optimize costs in both the delivery of services (or goods) and the acquisition and management of inputs -in other words, the productivity of processes must be improved. Health care system leaders must thoroughly explore the implications of proposed changes to inputs and the delivery of care and seek to eliminate barriers to innovation that exist sim ply for the sake of protecting entitlements and job security-all while continuing to promote safety Enhance the productivity of processes. Higher productivity in health care and emergency room=waiting times )and by increased capital productivity (for can be measured by reductions in service times (including average lengths of stay example, the number of surgical operations per theater per day) Health care systems should strive to optimize costs by making better investments in assets and then using them productively rather than by creating excess capacity and Minimize factor input costs. Health care leaders can reduce the cost of labor or goods by purchasing them more effectively. Governments, which are often the single largest purchasers of health care services, frequently don' t implement proven techniques to manage purchasing and supply chains 6. Improve finance mechanisms Sustainable, equitable health care systems require efficient financing mechanisms to match supply and demand Health care intermediaries should examine alternative sources of finance and match them to the needs and economic characteristics of populations in a way that helps to control overall prices Shifts sources of financing for health care Health care systems around the world have largely used private or public insurance plans to finance care that does not lend itself well to insurance products. As demographics and lifestyles increase the incidence of medical conditions brought on by longer lives and unhealthy habits, respectively, the overall balance of funding needs to shift away from insurance and much more toward savings Single-payer insurance coverage, for instance, tends to be excessive for the young and healthy but insufficient for the chronI cally ill. A more graduated coverage structure could improve the system s overall efficiency, reduce costs, and increase the amount that consumers save for their health care by encouraging them to understand the economic trade-offs between health care and alternative uses of these funds. In end-of-life care, for example savings may be a better mechanism: late in life individuals often own assets (such as life insurance benefits and retirement savings) they can use to hedge the5. Promote cost competitiveness Providers must have the right incentives to optimize costs in both the delivery of services (or goods) and the acquisition and management of inputs—in other words, the productivity of processes must be improved. Health care system leaders must thoroughly explore the implications of proposed changes to inputs and the delivery of care and seek to eliminate barriers to innovation that exist simply for the sake of protecting entitlements and job security—all while continuing to promote safety. Enhance the productivity of processes. Higher productivity in health care can be measured by reductions in service times (including average lengths of stay and emergency room2 waiting times) and by increased capital productivity (for example, the number of surgical operations per theater per day). Health care systems should strive to optimize costs by making better investments in assets and then using them productively rather than by creating excess capacity and overusing it. Minimize factor input costs. Health care leaders can reduce the cost of labor or goods by purchasing them more effectively. Governments, which are often the single largest purchasers of health care services, frequently don’t implement proven techniques to manage purchasing and supply chains. 6. Improve finance mechanisms Sustainable, equitable health care systems require efficient financing mechanisms to match supply and demand. Health care intermediaries should examine alternative sources of finance and match them to the needs and economic characteristics of populations in a way that helps to control overall prices. Shifts sources of financing for health care. Health care systems around the world have largely used private or public insurance plans to finance care that does not lend itself well to insurance products. As demographics and lifestyles increase the incidence of medical conditions brought on by longer lives and unhealthy habits, respectively, the overall balance of funding needs to shift away from insurance and much more toward savings. Single-payer insurance coverage, for instance, tends to be excessive for the young and healthy but insufficient for the chronically ill. A more graduated coverage structure could improve the system’s overall efficiency, reduce costs, and increase the amount that consumers save for their health care by encouraging them to understand the economic trade -offs between health care and alternative uses of these funds. In end-of-life care, for example, savings may be a better mechanism: late in life, individuals often own assets (such as life insurance benefits and retirement savings) they can use to hedge the