International Health Financing
PST 06105: HEALTH FINANCING
Session 8: International Health Financing
Learning Tasks
At the end of this session students are expected to be able to:
Define
international health financing
Explain
how international health financing operates in the health sector
Enumerate
advantages and disadvantages international health financing
Activity: Brainstorming
What is international health financing?
3
International
Health financing
International health financing is a form of financing where external (or non-domestic)
finances
and other resources are
channeled
in a country to support the health sector
in order
to supplement and complement the government health financing in providing
public health
services to the general populations
External
funds
are
used to finance health service delivery
Funds
are obtained from external donors or development partners ( e.g. IMF
, WHO
,
UNICEF
, DANIDA, SIDA, USAID, Governments, OXFAM)
Resources
are mobilized in form of grants, loans or donations in form of monetary,
technical
assistance or in kinds (in form medicines, equipment etc.).
Activity: Brainstorming
What parties involved in international health financing?
5
Operation
of International Health Financing
International Funds mobilized from
government
of developed countries, international
organizations
, or private sector organizations to health sector of developing
countries.
International
funds are
channeled
through different routes of the government:
To
ministries of finance through general budget to support the economy and
other government
projects and
programmes
.
To
support health sector through sector-wide approaches, health projects and
health
programmes
; e.g. some of the international funds are pooled in fund known as
health basket
fund, which is used to support health sector
To
support health activities, projects, and
programmes
of NGOs -international
, national
or local
Activity:
Small group discussion
What are the advantages disadvantages of international health financing?
7
Advantages
of
International Health Financing
They
contribute significant amounts
of financial resources for the health
sector, especially
in developing country health systems
When
used effectively
, they contribute to
improvement
of health of the poor people
They
can contribute potentially to
improve management and administrative processes
of
health sector in a recipient country through sector- wide approaches and
general budget
support
Disadvantages
of International Health Financing
Finance generated through international health financing are not so stable ;
they fluctuate
depending on socio-economic condition or current political relations of
the donor
countries
External finances come with conditions, may not be in line with country
or organization
priorities and policies
When
poorly coordinated, they may bring fragmentation to a health system
and additional
transactional costs
If
the government relies too much on this mode of financing health services, it
may reduce
innovativeness in seeking and allocating adequate local funds to the
health sector
Key Points
International
financing constitutes the most widespread health financing mechanism
in the
developing countries
Financial
resources and other resources are
channeled
to ministry of finance,
health sector
, health
programmes
, health project and NGOs working in the health sector.
International
health financing has both advantages and disadvantages
Evaluation
What
is international health financing?
How
international health financing operate in the health sector of Tanzania?
What
are three advantages and disadvantages of international health financing?
Reference
Gottret
, P.
Schieber
, G. (2006). Health financing revisited: a
practioner’s
guide. World Bank
Green, A. (2007). An introduction to health planning for developing health systems.
Oxford: Oxford
University Press
Tanzania
.
MoHSW
(2014). DHM Healthcare financing module. Dar
es
Salaam:
MoHSW
WHO
(2003). Mental health financing. Geneva, WHO
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