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Public Expenditures in Health
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Main Principles Establish Market Failures
Identify beneficiaries of expenditures Balance potential benefits with ability to deliver services
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Health - Market Failures
Public goods (pest control, sanitation, health education) Externalities (infectious disease control) Information advantage of doctors Insurance
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Health - equity concerns
Inequities in health status Inequities in benefits of services
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The poor are sicker than other people: Under two mortality by “wealth”- Brazil, 1996
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Prevalence of disease by “wealth”: India 1992-3
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Female 45Q15 by cause of death by income group, China 1987
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Health - Problems of Implementation
Management challenge Personnel placement Quality of services Conscientious providers Maintenance of facilities Political Influence
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Percentage of health centers without doctors by province: Indonesia
I didn’t bother to put the names. I wanted to show correlation with income or urbanization but it didn’t work. But it is still true that there is something about the attractiveness of the area. Irian Jaya, central Kalimantan (Borneo) - high income from logging or minerals but lousy places to live - grey are mostly poor. Light blue are Java/Bali/Sumatra nice places to live.
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Absence rates from public health care centers: Bangladesh 2002
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Health: Complementarity/ conflict between goals
Public goods - strong complementarity Primary health care - modest efficiency effects (varies), potentially high equity effects, difficult management Hospitals - high efficiency, high potential but low actual equity effects, easier management(?)
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In Brazil, the poor have worse sanitation facilities…
Percent of households with no sanitation facilities
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…they have less access to safe water…
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…and this costs the lives of their children
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What’s this look like in Egypt
What’s this look like in Egypt? Percentage of households with no sanitation facilities
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And for Jordan?: Sanitation facilities by
household wealth 100% Other 50% Covered Dry Toilet/septic 0% Toilet/sewage 1 2 3 4 5 6 7 8 9 10
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Jordan: Sanitation facilities by governorate
100% 80% Other 60% Covered Dry Toilet/septic 40% Toilet/sewage 20% 0% Balqa Irbid Zarqa Mafraq Jerash Ajloun Karak Tafileh Ma'an Madaba Aqaba Amman
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Health: Complementarity/ conflict between goals
Public goods - strong complementarity Primary health care - modest efficiency effects (varies), potentially high equity effects, difficult management Hospitals - high efficiency, high potential but low actual equity effects, easier management(?)
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Determinants of infant mortality
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Philippines: Effect of public medical care
Poor area Not-so-poor area
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Substitution between public and private providers
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Substitution between public and private providers in Jordan
A 10% increase in primary health care facilities per capita (by governorate): - increases their use by 4.4% - decreases use of private facilities by 3.2% - decreases use of public hospitals by 2.6% Net effect?
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Distribution of health care subsidies, Indonesia
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Jordan: Not enough information
Place of first health consultation by household wealth 100% UNRWA Gvt health ct 50% Pvt clinic 0% Gvt hospital 1 2 3 4 5 6 7 8 9 10 Pvt hospital
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Health: Complementarity/ conflict between goals
Public goods - strong complementarity Primary health care - modest efficiency effects (varies), potentially high equity effects, difficult management Hospitals - high efficiency, high potential but low actual equity effects, easier management(?)
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Value of insurance as a % of expected cost
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Priorities in health policy
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