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Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian 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. Terminology used may not necessarily be consistent
with ADB official terms.
Outline
Background
Comparative Review of Health Financing in CW Asia
Country Studies
Recommendations
Conclusion
Outline
Background
Comparative Review of Health Financing in CW Asia
Country Studies
Recommendations
Conclusion
Health financing is much more than a matter of raising money for health.
It is also a matter of who is asked to pay, when they pay, and how the money raised is spent.
(WHO, 2011)
Health
financing
functions
Health
financing
objectives
Health
financing
policy goal
Ultimate
health
system goal
How to raise?
How to allocate?
How to use?
Revenue collection
Pooling
Purchasing/provision
Financial accessibility
Health
financing
functions
Health
Level
financing
of
performance funding
Indicators
Health
financing
objectives
Health
financing
policy goal
Ultimate
health
system goal
How to raise?
How to allocate?
How to use?
Revenue collection
Pooling
Purchasing/provision
Level of
population
coverage
Level of
equity
financing
Degree of
financial risk
protection
Level
of
pooling
Level of
administrative
efficiency
Financial accessibility
Equity
in BP
delivery
Efficiency
in BP
delivery
Costeffectiveness
& equity in
BP definition
Source: WHO-OASIS; Note: OASIS=Organizational ASsessment for Improving and Strengthening Health Financing; BP=Benefit package
*Result Framework for the OPH (ADB): OOP expenditure kept under 30% by 2030.
1000
800
600
200
1995
2000
2005
2010
2013
1995
2000
2005
2010
2013
1995
2000
2005
2010
2013
1995
2000
2005
2010
2013
1995
2000
2005
2010
2013
1995
2000
2005
2010
2013
1995
2000
2005
2010
2013
1995
2000
2005
2010
2013
1995
2000
2005
2010
2013
1995
2000
2005
2010
2013
Kazakhstan
Azerbaijan
Georgia
Armenia
Public
Uzbekistan
Private
Turkmenistan
Kyrgyz
Republic
Tajikistan
Afghanistan
Pakistan
Percentage
60%
50%
40%
30%
20%
10%
0%
Turkmenistan
Kyrgystan
Kazakhstan
Uzbekistan
State budget
Armenia
Public funds
Source: World Bank, WHO; Note: VHI=Voluntary health insurance; OOP=Out-of-pocket
Pakistan
VHI
Tajikistan
Other
Azerbaijan
Afganistan
Georgia
OOP
Private funds
Outline
Background
Comparative Review of Health Financing in CW Asia
Country Studies
Pakistan: Leaky bucket
Uzbekistan
Kyrgyz Republic
Recommendations
Conclusion
Health indicators
20,789
LMIC
16,641
5,000
11,796
13,554
4,893
4,611
Source: World Bank, WHO; Note: LMIC=Lower-middle-income countries; DALY=Disability-adjusted life year
10
Lower-middleincome countries
2000
2012
2000
2012
3.0%
2.8%
4.0%
4.1%
$80.6
$122.4
$99.5
$217.5
3.5%
4.7%
6.1%
6.2%
21.7%
36.9%
21.7%
36.9%
63.4%
54.8%
58.6%
54.8%
81.0%
86.8%
81.0%
87.2%
9.6%
12.2%
0.3%
0.6%
0.8%
4.9%
2.7%
3.2%
11
Source/
collection
MoD
Purchasing
MoD
Provision
Population
Province / district
administrations
Federal budget
Pooling
Military
Health
Care
system
Social security
Several vertical
programs
through MoIPC
PDoH
Each
autonomous
body
Each
institution
PDoH
Each
autonomous
bodies
ESSI
(province level)
Contracted
networks of
health
providers
Contracted
networks of
health
providers
3-tier public
providers
The 18th
amendment
in 2011
Employers
contributions
(BHU, MCHC,
RHC, THQ,
DHQ, provincial
tertiary care)
Coverage
Coverage
Coverage
Coverage
Military
Each
province
Autonomous
bodies
employers
ESSIregistered
employers
(2.0%)
(4.4%)
(9.7%)
Private funds
Households
OOP
Private
providers
(Fee-forservice)
Uninsured*: 78.1%
(Coverage)
Source: Authors compilation; Note: MoD=Ministry of Defense; MoIPC=Ministry of Inter Provincial Coordination; PDoM=Provincial department of Health; ESSI=Employees Social Security
Institute; BHU=Basic Health Unit; RHC=Rural Health Center; MCHC=Maternal and Child Health Center; THQ=Tehsil Headquarters Hospital; DHQ=Districts Headquarter Hospital
12
Level of
funding
Level of
population
coverage
Level of
financial risk
protection
Level of
equity in
financing
Level of
pooling across
the financing
system
Level of
efficiency and
equity in the
delivery of BP
Degree of
costeffectiveness
and equity
consideration
in BP scheme
Low
Level of
administrative
efficiency
---
Shocks faced by
the poor/vulnerable, 2005
Law and order
3%
Economic
shocks
28%
Family matters
4%
Health shocks
54%
Agricultural
shocks
4% Natural
calamities
7%
13
Constrained economic
growth
Inequity to access
appropriate health service
Effects
Core Problem
Protection through
pre-paid mechanism
is limited
Causes
Public services
are de facto
paid
No statutory
explicit BP
scheme
No VHI
mechanism
VHI-unfriendly
environment
(lack of regular capacity
and affordability)
Various investment
level on health
across provinces
Capacity of risk
distribution is weak and
less effective
Highly frequent
pooling system
(institutional /
provincial level)
Predominant play of
private sectors w/o curb
on high cost expansion
Scarcity of
public
health
facilities
Poor quality of
services and
distrust for public
health providers
Low
revenue
collection
No earmarked tax
for health
High inefficiency
of public resource
management
No government
purchasing
power
Weak integrated
health sector policy
and planning
No monitoring and
evaluation
No
established
referral
patterns
No regulation
of payment
for private
sector
No effective control
of multi-channel
payment system
14
Outline
Background
Comparative Review of Health Financing in CW Asia
Country Studies
Pakistan
Uzbekistan: Rocky road from the Semashko model
Kyrgyz Republic
Recommendations
Conclusion
15
Health indicators
6,840
LMIC
14,571
16,641
5,000
2,713
13,554
4,611
Source: World Bank, WHO; Note: LMIC=Lower-middle-income countries; DALY=Disability-adjusted life year
16
Lower-middleincome countries
2000
2012
2000
2012
5.3%
6.1%
4.0%
4.1%
$103.5
$305.6
$99.5
$217.5
8.7%
9.6%
6.1%
6.2%
47.5%
51.1%
21.7%
36.9%
52.3%
46.0%
58.6%
54.8%
99.7%
94.0%
81.0%
87.2%
0.6%
5.6%
0.3%
0.6%
6.7%
1.4%
2.7%
3.2%
17
Source/
collection
Private funds
Republican budget
(Region)
Pooling
Republican budget
Purchasing
Ministry of Health
Purchasing-provider spilt
capitation rate
(rural)
Provision
Households
OOP
Partially
Integration
line-item budgeting
& Self-financing
(city)
SVPs
Polyclinics
Viloyat/city
hospital
Republican
health facilities
SRBs
Coverage
Population
General population
Prevalent
Informal payments
Source: Authors compilation; Note: OOP=Out-of-pocket; SVP=Rural physician point; SRB=Outpatient clinics of central rayon hospital
18
Level of
population
coverage
Level of
funding
Level of
financial risk
protection
Level of
equity in
financing
Level of
pooling across
the financing
system
Level of
efficiency and
equity in the
delivery of BP
Degree of
costeffectiveness
and equity
consideration
in BP scheme
Low
Level of
administrative
efficiency
---
0.60
3.8
3.4
0.50
Informal-to-formal payments
3.0
3.0
% of total expenditure
2.5
2.3
2.0
1.0
Poorest
0.49
0.45
0.44
Q2
0.40
0.30
Q3
0.26
0.24
0.19
0.20
0.18
0.10
Richest
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Q2
Q3
Q4
Richest
0.00
Poorest
Q2
Q3
Q4
Richest
State
doctor
Private
doctor
Source: Authors analysis based on Living Standards Assessment, Cashin et al. etc; Note: OOP=Out-of-pocket
19
Constrained economic
growth
Inequity to access
appropriate health service
Effects
Core Problem
Protection through
pre-paid mechanism
is limited
Informal payment is
prevalent
Causes
Lack of
medical
supplies
Low salary
of health
workers
Shallow
BP scheme
Low level of
external aids
Inefficient
government
revenue
Various investment
level on health
across oblast
Inefficient
resource
management
No government
purchasing
power
Capacity of risk
distribution is weak and
less effective
No VHI
mechanism
Frequent
pooling system
(vlioyat level)
Lack of quality
in primary care
No established
referral
procedure
VHI-unfriendly
environment
(lack of regular
capacity and demand)
Rigid input-based
financing in hospital
(line-item budgeting)
No monitoring
and evaluation
(data scarcity)
20
Outline
Background
Comparative Review of Health Financing in CW Asia
Country Studies
Pakistan
Uzbekistan
Kyrgyz Republic: Regional leader in health system reform
Recommendations
Conclusion
21
Introduction of State
Guarantee Benefit
Package (SGBP) and
official co-payments
Replacement of line-item
health financing with new
provider payment methods
for the use of MHIF
Hospital: case-based
payment
PHC: capitation
Pooling of funds at
oblast level
1991 1996
1998
Kyrgyz Republics
independence
2000
Launch of Additional
Drug Package (ADP)
providing drug benefits
to citizens enrolled in
the MHI
2002
2004
Manas (1996-2006)
Pooling of funds at
national/republican level
(single payer system)
Improvement of
purchasing
arrangements of the
MHIF and the Ministry of
Health
Expansion of copayment exemptions
enrolled in the MHI
2006
2008
Salary
increase
for health
workers
2010
2012
2014
2016
22
Kyrgyz Republic
2000
2012
2000
2012
4.7%
7.0%
4.0%
4.1%
76.1
$208.6
$99.5
$217.5
12.0%
12.2%
6.1%
6.2%
44.3%
60.2%
21.7%
36.9%
49.8%
35.2%
58.6%
54.8%
89.3%
88.5%
81.0%
87.2%
0.0%
0.0%
0.3%
0.6%
6.0%
12.2%
2.7%
3.2%
15.2
Percentage (%)
Annually
0.6%
15.0
10.0
8.7
6.7
6.7
5.0
0.0
3.3
2006
3.9
2007
2008
2009
2010
2011
2012
2013
23
Source/
collection
Social security
Private funds
Social Fund
Republican budget
Households
(earmarked
2% payroll tax)
Complimentary
Pooling
Republican MHIF
(nation-level pool)
Purchasing
Coverage
General population
Coverage
Population
SGBP:
Type, scope and
conditions for providing
health services free and
based on benefits
Service coverage
Provision
Co-payment
24
12.0%
7.1%
10.0%
5.5%
6.0%
4.9%
4.4%
5.2%5.3%
5.0%
4.2%
3.9%
3.6%
4.0%
3.6%
4.5%
3.9%4.0%
8.0%
6.3%
6.0%
2.9%
4.4%
4.0%
2.0%
3.1%
2.0%
0.0%
Poorest
3
2003
2006
Richest
0.0%
2000
2003
2006
2009
2009
but the financing system is not targeted well to diseases or the poor
Coverage of co-payment exemptions policies, 2010
% coverage of population
60
50
50
47
48
KGZ
45
5,767
13,554
4,611
39
40
30
LMIC
16,641
15,300
3,421
20
0
5,000
10
0
Poorest 20%
Q2
Q3
Q4
Richest 20%
Source: World Bank, KIHS, WHO; Note: OOP=Out-of-pocket; DALY=Disability-adjusted life year
25
Problem
definition
and
Options
development
Political
decision
Piloting
and
Learning
from
evidence
Evaluation
and
Redesign
Scaling
Embedding
in legal,
regulatory
framework
Source: Authors analysis, World Bank, the London School of Hygiene & Tropical Medicine
26
Outline
Background
Comparative Review of Health Financing in CW Asia
Country Studies
Recommendations
Conclusions
27
Constrained economic
growth
Inequity to access
appropriate health service
Effects
Core Problem
Protection through
pre-paid mechanism
is limited
Causes
Public services
are de facto
paid
No statutory
explicit BP
scheme
No VHI
mechanism
VHI-unfriendly
environment
(lack of regular capacity
and affordability)
Various investment
level on health
across provinces
Capacity of risk
distribution is weak and
less effective
Highly frequent
pooling system
(institutional /
provincial level)
Predominant play of
private sectors w/o curb
on high cost expansion
Scarcity of
public
health
facilities
Poor quality of
services and
distrust for public
health providers
Low
revenue
collection
No earmarked tax
for health
No
established
referral
patterns
No regulation
of payment
for private
sector
No effective control
of multi-channel
payment system
High inefficiency
of public resource
management
No government
purchasing
power
Weak integrated
health sector policy
and planning
No monitoring and
evaluation
Lack of incentives to
improve efficiency in
service delivery
28
Constrained economic
growth
Inequity to access
appropriate health service
Effects
Core Problem
Protection through
pre-paid mechanism
is limited
Causes
Public services
are de facto
paid
No statutory
explicit BP
scheme
No VHI
mechanism
VHI-unfriendly
environment
(lack of regular capacity
and affordability)
Various investment
level on health
across provinces
Capacity of risk
distribution is weak and
less effective
Highly frequent
pooling system
(institutional /
provincial level)
Predominant play of
private sectors w/o curb
on high cost expansion
Scarcity of
public
health
facilities
Poor quality of
services and
distrust for public
health providers
Low
revenue
collection
No earmarked tax
for health
No
established
referral
patterns
In Punjab
No regulation
of payment
for private
sector
No effective control
of multi-channel
payment system
High inefficiency
of public resource
management
No government
purchasing
power
Weak integrated
health sector policy
and planning
No monitoring and
evaluation
Lack of incentives to
improve efficiency in
service delivery
29
Provincial
Health
financing
ADBs
operational
focus
Health
infrastructure
Health
governance
Federalprovincial
coordination
ICT, hospitals,
health workers
30
Constrained economic
growth
Inequity to access
appropriate health service
Effects
Core Problem
Causes
Protection through
pre-paid mechanism
is limited
Informal payment is
prevalent
Lack of
medical
supplies
Low salary
of health
workers
Shallow
BP scheme
Inefficient
government
revenue
Various investment
level on health
across oblast
Inefficient
resource
management
No government
purchasing
power
Capacity of risk
distribution is weak and
less effective
No VHI
mechanism
Frequent
pooling system
(vlioyat level)
Lack of quality
in primary care
No established
referral
procedure
VHI-unfriendly
environment
(lack of regular
capacity and demand)
Rigid input-based
financing in hospital
(line-item budgeting)
No monitoring
and evaluation
(data scarcity)
31
Traditional
model
Government service
Initiator
(defines services
and area)
Selector
(who chooses
provider)
Manager
Production
Infrastructure
Source of
Financing
Government
Government
Government
Government
Government
New PPP
model
Management
contracts
Government
Government
Private sector
Government
Government
Service delivery
contract
(clinical/non-clinical)
Government
Government
Private sector
Private sector
Government
32
MDR-TB
Stage 2
HIV
Stage 1
Janssen GPH
NGO/academia
Source: Interview and news articles from Janssen Global Public Health; Note: IPM=International Partnership for Microbicides; MDR-TB=multi-drug resistant tuberculosis
33
No health intervention
in the pipeline
Health Infrastructure
Health Financing
Health Governance
Acknowledgement
for the hottest EVER summer ;-)
Direct supervision of work
Life in ADB
Advisory / Interview
Susann Roth (SDCC)
Andaleeb Alam (YP)
Gerard Anderson (Professor, JHU)
Sachiko Ozawa (Assistant Scientist, JHU)
Hwayoung Lee (Postdoctoral Fellow, SNU)
Hyobum Jang (Fellowship, WHO WPRO)
Hoon Sang Lee (Senior Health Advisor, KOICA)
Enrique Esteban (Director, Janssen GPH)
35
Thank You!
Questions?
yeonhee.yang@jhu.edu
yeonhee.yang@gmail.com
https://www.linkedin.com/in/yeonheeyang
Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian 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. Terminology used may not necessarily be consistent
with ADB official terms.
36
Appendix
37
Main characteristics
Model
Bismarck model
Source: Authors compilation, based on JHSPH class Health Financing in LMIC by Prof. Ozawa
38
Characteristics
Fee-forservice
Capitation
Advantages
Disadvantages
Cost escalation
Incentives for Supplier-induced demand
Unpredictable expenses for fund holder
Case-based
(include DRG)
Global budget
Line-item
budget
Source: Authors compilation, based on JHSPH class Health Financing in LMIC by Prof. Ozawa; Note: DRG=Diagnostic-related groups
39
Design &
construction
Detailed
designs
Building
construction
Medical
equipment
Capital
financing
Source: IFC
Non-clinical
services
IT
equipment &
services
Maintenance
Food
Laundry
Cleaning
Security
Primary care
Primary care
Public health
Vaccinations
Maternal &
child health
Clinical
support
services
Lab analysis
Diagnostic
tests
Medical
equipment
maintenance
Ambulance
services
Specialized
clinical
services
Dialysis
Radio-therapy
Day surgery
Other
specialist
services
Hospital
management
Management
of entire
hospital or
network of
hospitals
and/or clinics
40