Health Care Financing - NIHFW
[Pages:48]Health Financing for Universal Coverage
Indrani Gupta Institute of Economic Growth
Delhi
Presented at the National Institute of Health and Family Welfare, New Delhi
1 November 2013
Why focus on health financing?
? While GDP growth and health outcomes are related, the link comes via a higher level of health spending
? Higher GDP growth rate enable countries to allocate more to health, which in turn impacts on health outcomes
? But wide variation across countries ? Higher GDP does not always lead to higher allocations to health
? Similarly, higher allocations to health can lead to varied outcomes ? India has low GDP per capita, low per capita health spending and poor health
outcomes
? There are countries that are spending more on health even with India's level of per capita GDP
? It is possible to improve health outcomes even with this level of health spending
Life expectancy
90 80 70 60 50 40 30
10
Life Expectancy and per capita GDP
India
100
1000
10000
Per capita GDP
100000
Infant Mortality and per capita GDP
Infant Mortality
200 180 160 140 120 100
80 60 40 20
0 10
Infant mortality Vs GDP Per Capita
India
100
1000
10000
Per Capita GDP
100000
Per capita health spending and GDP per capita
10000.0
Per Capita Health Spending
1000.0
100.0
10.0 10.0
India
100.0
1000.0 Per Capita GDP
10000.0
100000.0
Public share of total health spending and GDP
120
Pub. Health Spending as % of Total Health Spen.
100
80
60
40
India
20
0
1
10
100
1000
10000
100000
Per Capita GDP
Public spending & health outcome across countries, 2011
200
150
100
I M R
50
0 0
-50
20
40
60
80
100
120
Public spending in total health expending
Definition of health care financing
? Health financing system is, therefore, more than merely an approach to mobilize funds for health care
? WHO definition of health financing:
? Health financing is the "function of a health system concerned with the mobilization, accumulation and allocation of money to cover the health needs of the people, individually and collectively, in the health system."
? The purpose of health financing is to make funding available, as well as to set the right financial incentives to providers, to ensure that all individuals have access to effective public health and personal health care" (WHO 2000).
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