PHM-Exch> WHO urges all countries to strengthen health financing

[Claudio Schuftan]

From: Meghana Bahar <meghana at haiap.org>
Press Release: World Health Organisation

WHO urges all countries to strengthen health financing so more people can
use services

Manila, 22 November 2010 —Governments worldwide are struggling to pay for
health care. As populations get older, as more people suffer chronic
diseases, and as new and more expensive treatments appear, health costs
soar.

Even in countries where health services have traditionally been accessible
and affordable, financing mechanisms are increasingly stretched. In
countries that depend heavily on people paying directly for services at the
point of delivery, health bills push 100 million people into poverty each
year.

This year's World Health Report[1] gives governments practical guidance on
ways to finance health care. Taking evidence from all over the world, it
shows how all countries, rich and poor, can adjust their health financing
mechanisms so more people get the health care they need. It encourages the
international community to support low and middle-income countries' efforts
to increase health coverage.

"No one in need of health care should have to risk financial ruin as a
result," said Dr Margaret Chan, Director General of WHO. "The report sets
out a stepwise approach. We encourage every country to act on this and do at
least one thing to improve health financing and increase health coverage
over the coming year."

WHO highlights three key areas where change can happen: 1) by raising more
funds for health; 2) by raising money more fairly; 3) by spending money more
efficiently. Universal coverage is the ultimate objective.

Raise more funds for health

In many cases, there is scope for governments to allocate more money for
health.
Evidence also suggests that more money can be generated through more
efficient and effective tax collection. One possible source of additional
funding is through tobacco taxation. It is estimated that for countries like
the Lao PDR and Viet Nam, a 50% increase in excise tax would represent a 10%
increase in total funding for health and a more than 25% increase in
government's health budget.

The international community has a key role to play. An average of $44 per
capita is required to ensure access to even a small set of quality health
services in low income countries. Many struggle to do this. Today, 31
countries spend less than US$ 35 per person on health. Nordic countries are
allocating 0.7% of gross domestic product (GDP) to official development
assistance, and many other countries are following this model. As long as
these countries remain committed to their pledges, three million additional
lives could be saved in lower income countries by 2015.

Raise money more fairly

This means removing the key financial barriers to obtaining care. Targets
have to be set to reduce direct payments to 30%-40% of total health
expenditure in order to attain universal health care coverage.

In China, two schemes were in place with the aim of providing affordable
health services to urban and rural residents by 2020. Through these schemes,
the government aims to reduce dependence on direct payments and increase
population coverage by formal insurance from 15% in 2003 to 90% by 2011.
Policymakers in China are well aware that effective coverage and access is
feasible only with substantial reductions of direct payments.

Spend money more effectively.

Smarter spending could increase global health coverage by anything between
20%-40%. The report identifies 10 areas where greater efficiencies are
possible. One of these is the purchasing of generic drugs where possible.
Another area on effective spending is at the hospitals. Hospital care often
absorbs from half to two thirds of total government spending on health. More
efficient spending on hospitals can boost productivity by up to 15%.

Looking ahead

On 22 November, WHO presents the report to at a ministerial conference on
health financing[2], hosted by the Government of Germany. The organization
and its partners will then embark on a programme to help countries review
their health financing systems and strategies alongside their national
health policies and plans. It will encourage and facilitate exchanges of
experiences between countries, and help countries adjust financing systems
so that more people get to access the health services they need.


Source:
http://www.scoop.co.nz/stories/WO1011/S00446/who-urges-all-countries-to-strengthen-health-financing.htm
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