Funding criteria for health services research in Germany: an economic perspective

Abstract

The aim of this article was to analyze to what degree funding criteria for health services research (HSR) and integrated care (IC) research used by central authorities in Germany (i.e., the German Innovation Committee) have been in agreement with economic principles. To this end, a minimal consensus between mainstream and heterodox economics was defined. Consented economic principles include the consideration of opportunity costs, the use of financial incentives in changing behavior, and, with some reservations, a role for markets in health care. Scrutinizing funded projects with respect to these principles suggests that the principles have been insufficiently taken into consideration. The lack of consideration of opportunity costs leads to an underestimation of the total cost of HSR/IC from a societal perspective. Funding of narrowly targeted interventions as the mainstay of HSR/IC insufficiently addresses the ‘local knowledge problem’ of central HSR/IC planning. In contrast, financial incentives, which allow for a broader and more systematic approach of improving the quality of care, have been neglected. In conclusion, drawing on a minimal economic consensus, this article identifies areas for potential revision of funding criteria for HSR/IC research in Germany.