These changes could help attract and retain health workers, and will be needed if Switzerland is to continue to provide some of the best care in the world to its citizens. Fee-for-service arrangements in the ambulatory hospital sector and subsidies from cantons to public hospitals reward hospitals for doing more and provide weak incentives for cost moderation. This helps explain why, despite reductions over the past decade, hospital stays in Switzerland are longer than the OECD average and there are fewer day cases as a share of overall hospital cases in Switzerland than in several other countries.