SOURCES OF FINANCE IN

HEALTHCARER.Sam vivek

2nd MBA

Health Care Finance

“Function of a health system concerned with the accumulation, mobilization and allocation of money to cover the health needs of the people, individually and collectively, in the health system.” (WHO)

PROCESS OF FINANCING

Revenue collection :

1. Taxation-most equitable system of financing2. Health insurance contributions3. User pays (out of pocket, no

reimbursement)4. Donor funding/Grants

Taxes for Government Healthcare Funds

Similar to the “Education Cess on Income Tax” and “Secondary and Higher Education Cess on Income Tax”, the Government can consider introducing a health related component within the Income Tax structure that will act as a secondary source for Government Healthcare funds to be utilized in public health services

Health insurance

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses.

USER PAY

Your expenses for medical care that aren't reimbursed by insurance. Out-of-pocket costs include deductibles, coinsurance, and copayments for covered services plus all costs for services that aren't covered.

Donor funding/Grants

Donor/Grants are non-repayable funds or products disbursed by one party, often a government department, corporation, foundation or trust, to a recipient, often a nonprofit entity, educational institution, business or an individual.

Mobilization

Health Risk Subsidy Cross Subsidy

POOLING(Across equal income)

CONTRIBUTION NET TRANSFER

CROSS SUBSIDY(Across equal risk)

Risk

Low

High

Income

Low

High

Purchasing of health services : It is done by public or private agencies that spend

money either to provide services directly or to purchase services for their beneficiaries.

Purchaser : Ministry of health (MOH) Social security agencies District health board Insurance organization Individual or household

REVENUES

THANQ FRIENDS