How the Austrian Ministry of Social Affairs Improved the Efficiency of its Social Insurance and Healthcare System


LSE Professor Elias Mossialos led a project reviewing the fairness and efficiency of Austria’s social insurance and healthcare system, which is estimated to save the government £1 billion by 2023.

Our proposed option chosen by the government is estimated to save €1 billion by 2023 and reduce the total number of people employed in the social insurance system by 30% over the next 10 years.

Professor Elias Mossialos

The Inefficiency of Health Systems 

Health system inefficiencies can lead to numerous undesirable consequences, including poorer outcomes for patients, denied access to care for some individuals, or diverted resources to other sectors of the economy. Tackling inefficiencies has a huge accountability value: to reassure payers that their money is being spent wisely and to reassure patients, caregivers, and the general population that their claims on the health system are being treated fairly and consistently. 

The Austrian Ministry of Social Affairs faced increased challenges due to inequities and inefficiencies within their existing system and sought help from LSE experts to review the entire social insurance and healthcare system. 

The Route to Reform 

Professor Elias Mossialos, a leading expert in health systems and policy, was selected by the Austrian government to submit a successful proposal to secure the consulting project. The project involved an initial review of academic and policy literature to gain an understanding of Austria’s political and federal policies and of the existing strengths and challenges within its health system. 

“After our review, we proposed four options to restructure Austria’s social health insurance system which contribute to a system fairer to users and more efficient and cost-effective to run. The option chosen by the government is estimated to save €1 billion by 2023 and reduce the total number of people employed in the social insurance system by 30% over the next 10 years.”

–   Professor Elias Mossialos 

The Journey 

With LSE Consulting’s support on the bid preparation, the academic team were able to secure the project funding. Following the award, LSE Consulting supported the contract negotiation, including rights to publish research and opportunities to employ a team within LSE Health. 

The consulting project was submitted and selected as an Impact Case Study for REF 2021 and classified as world-leading research with a 4-star rating. 

If you are interested in exploring how LSE Consulting can support you in using your expertise to address real-world issues, please get in touch with us via consulting@lse.ac.uk.