whr2010 regional strategy

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    Universal Health CoverageThe World Health Report 2010 and

    The Regional Health Financing Strategy 2010-2015

    Ke XuHealth Care Financing

    WHO Regional Office for the Western Pacific

    26 April 2012, ADB

    The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of theAsian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee

    the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Thecountries listed in this paper do not imply any view on ADB's part as to sovereignty or independent status or necessarily conform

    to ADBs terminology.

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    Health Systems Financing

    |

    Universal Health Coverage

    The aspiration to attain universal coverage is not new: WHO's constitution (1948)

    Alma-Ata declaration (1978)

    World Health Assembly Resolution (2005)

    World Health Report on Primary Health Care (2008)

    Health Financing Strategy for Asia Pacific Region (2009)

    World Health Report on Health Systems Financing-The

    Path to Universal Coverage (2010)

    Universal coverage has been adopted by most countriesin their national health plans and/or reform agenda

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    Health Systems Financing

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    Definition of Universal Coverage

    Universal Coverage Everyone has access to

    needed services withoutthe risk of financial

    hardship linked to payingfor care.

    Universal Coverage iscoverage with health

    services; with financialrisk protection; for all

    Three Dimensions

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    Health Systems Financing

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    Where We Are?

    Access to health services (prevention, promotion,treatment, rehabilitation): More than 1 billion people cannot use the health services

    they need

    Financial risk protection: Around 150 million suffer financial catastrophe each year

    and 100 million are pushed into poverty because they needservices, use them, but must pay at the time of use.

    System efficiency:

    Based on a conservative estimate, 20-40% of resources spenton health are wasted.

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    Coverage of Births by Skilled Health Personnel and DPT3 Vaccination

    Births attended by skilled health personnel

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100

    Countries (ranked from lowest to highest coverage)

    Percentage

    ofcov

    erag

    3 doses of diphtheria-tetanus toxoid pertussis

    vaccine among 1 year olds (DPT3)

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100

    Countries (ranked from lowest to highest coverage)

    Percentage

    ofcov

    erag

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    Health Systems Financing

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    Percentage of Births by Medically Trained Person:Poorest (Q1) and richest (Q5) quintiles

    0

    20

    40

    60

    80

    100

    0 10 20 30 40 50

    Q1Q5 Average

    Source: Latest available DHS for each country (excl. CIS countries)

    Q1, Q5 and Average - 22

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    Health Systems Financing

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    Millions More Suffer FinanciallyWhen They Use Health Services

    - 30 60 90

    WPR

    AMR

    SEA

    EUR

    AFR

    EMR

    Number of people (million)

    impoverishment

    catastrophic

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    Health Systems Financing

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    Three Fundamental Health Financing Challenges

    1. The continual need to search for

    sufficient funds for health;

    2. The need to ensure/maintainfinancial risk protection wherefinancial barriers do not prevent

    people using needed health servicesnor lead to financial ruin when usingthem;

    3. The need to reduce inefficiency andinequity in using resources, and

    increase transparency andaccountability.

    Revenuecollection

    Pooling

    Purchasing

    He

    althFinancin

    gFunctions

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    Health Systems Financing

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    Raise Sufficient Funds

    Increase the efficiency ofrevenue collection

    Reprioritize governmentbudget

    Innovative financing

    Development assistance for

    health 0% 1% 2% 3% 4% 5% 6% 7% 8%

    Lao PDR

    Philippines

    Cambodia

    China

    PNG

    Viet Nam

    Mongolia

    Health expenditure as a share of GDP (2008)

    public%GDP private%GDP

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    Reduce Out-of pocket Payments

    .01

    .03

    .1

    .3

    1

    3

    8

    15

    %ofhouseholdswithcatast

    rophicexpenditure(logarithm)

    3 5 8 14 22 37 61 100

    out-of-pocket payment in total health expenditure % (logarithm)

    OECD others

    Proportion of Households with Catastrophic Expenditures vs.Share of Out-of-pocket Payment in Total Health ExpenditureOut-of-pocketpayments preventsome people usinghealth services andresult in financial ruin

    for many who do

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    Health Systems Financing

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    Components of Health Expenditure, 2008

    0% 20% 40% 60% 80% 100%

    PNG

    Mongolia

    China

    Philippines

    Viet Nam

    Lao PDR

    Cambodia

    OOP Other SSH Tax

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    Health Systems Financing

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    Increase Efficiency

    Common causes of inefficiency:Spending too much on medicines and health technologies,using them inappropriately, using ineffective medicinesand technologies

    Leakages and waste, again often for medicines

    Hospital inefficiency particularly over-capacityDe-motivated health workers, sometimes workers with thewrong skills in the wrong places

    An inappropriate mix between prevention, promotion,treatment and rehabilitation

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    Health Systems Financing

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    Protect the Poor and Vulnerable

    Options (in addition to prepaid and pooled resources) to ensuregreater coverage and lower financial barriers:

    Free or subsidized services (e.g. through exemptions orvouchers) for specific groups of people (i.e. the poor) or forspecific health conditions (i.e. child or maternal care) e.g. Sierra

    Leone. Subsidized or free enrolment in health insurance e.g.

    Mexico, Thailand Cash payments to cover transport costs and other costs of

    obtaining care reduce some financial barriers for the poor.Sometimes these are paid only after the recipient takes actions,

    usually preventive, that are thought to be beneficial for theirhealth or the health of their families.

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    Health Systems Financing

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    Summary

    More money for health Search for more available funding for health

    Reduce the reliance on direct out-of-pocketpayments

    Maximize solidarity in the society

    More health for the money

    Improve efficiency and equity in use of resources.

    Protect the poor and vulnerable and improveequity

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    Thank you for your attention!