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
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