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Title: Healthcare Financing in Odisha
Authors: Pradhan, Adait Kumar
Keywords: School of Health Systems Studies
Healthcare Financing
Issue Date: 2017
Abstract: Title of the Project Work: Healthcare Financing in Odisha Introduction: Health care financing is the system of fund generation or credit, fund expenditures and flow of funds used to support the health service delivery system, so as to enhance risk-sharing and reduce catastrophic health expenditure and impoverishment of care-seeking individuals. The study has been conducted in the State of Odisha. Problem Statement: India continues to have among the lowest public health budgets in the world at just over 1% of Gross Domestic Product (GDP), which amounts to very low per capita health spending. In Odisha, despite substantial amount of central funding through NHM, about 76% of total health expenditure of the state is accounted due to out of pocket expenditure, which was about 98% of private expenditure. Rationale: As per WHO ―a good health financing system raises adequate funds for health, so that people can use needed services protected from financial catastrophe or impoverishment associated with having to pay for them. It provides incentives for providers and users to be efficient‖. Indeed, a critical understanding and reliable information on the financing of the health sector is essential not only for analysis and monitoring the present situation, but also for framing policies and conscious decisions for the future. Objectives: To assess the magnitude and pattern of healthcare financing though estimation of state health accounts for the year 2015-16 for the State of Odisha broadly based on National Health Accounts Framework highlighting Sources of Financing, Healthcare Financing Schemes, Healthcare Providers and Health Functions in public sector. Review of Literature: For the purpose of the assignment, few key areas like conceptual framework, state of healthcare financing, policy and reforms measures on healthcare financing, and major findings and recommendations of the different studies in Indian and some cross-country studies have been analyzed and reviewed. The catastrophic expenditure due health cost has been increased from 15% in 2004-15 to 18% in 2011-12. In terms of spending by State Govt., there has been a significant increase in the two State of Rajasthan and Odisha, as reported in Mita Choudhury and H.K. Amar Nath (2012) study an estimate of Public expenditure on health in India. Methods and Materials: All relevant data were collected through Key Informants Interview and structured data collection checklist based on NHA Matrix. Primarily, the budget document especially Demand for Grant of different public agencies was collected. The data has been collected and complied in adherence to NHA framework, which is based on System of Health Accounts 2011produced by OECD, WHO, and these framework has been commonly used estimation of health accounts at the different levels. The scope of the project work was limited to public health expenditure in Odisha. Major Findings: Total Health Expenditure (THE) as GDP of the State was 4.6%, which was slightly better than India average of 4% as per NHA 2013-14. About 64% of public health expenditure was accounted by State Govt. Schemes and 29% was incurred by central govt. schemes. Total public health expenditure of the State accounted under Health and Family Welfare was Rs. 3882.34 Crs, which was around 1.17% of GSDP. Hence, due to inadequate public health expenditure, there is acute shortfall of public health facilities, availability only half of beds at public facilities against norms, sever shortfall Human resource Health for all categories, increasing trend communicable and non-communicable diseases and IMR and MMR continued to be the highest in the country. Recommendations: The allocation of funds under State Health Budget needs to be enhanced at least by 50% from the current level to 2.5% of GSDP. More funds need to allocated towards drugs and diagnostic services. While allocating funds for different programme, priority must be given to address communicable and non-communicable disease control programme including focused attention for RMNCHA. The Govt. of India resource envelop under NHM needs to be enhanced at least by 50% in next two years so as to allocated adequate funds to all critical aspects for better health outcomes.
Appears in Collections:Post Graduate Diploma in Healthcare Quality Management

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