Using Health Accounts...For Policy-Making

Health accounts represent an important tool for policymakers. A key question that influences policy is: “How much is spent on producing health care in this country—and how does this level of spending compare to the past, and to other countries?” The answer to this question, combined with other information about health and demographic conditions, and the value placed on health by the given country, helps policymakers determine whether greater allocation of scarce public funds to health is warranted. Health accounts information can be used to justify and to track levels of investment in the health sector.

Another key question that policymakers often ask is: “What health services are being ‘purchased’ with this spending?”  Health accounts can show the proportion of spending on different types of services, such as, for example, the proportion spent on inpatient services in comparison with the share of total spending going toward preventive services.  While this information alone is insufficient to guide policy choices, it represents an essential input into resource allocation decisions.

A third question that policymakers may ask is: “What inputs are being ‘purchased’ with this spending?”  Health accounts can be used to identify the major costs in the production of health services; they can demonstrate, for example, how large a proportion of a country’s total spending is dedicated to personnel, or to pharmaceutical inputs. When viewed over time and/or in comparison with other countries, this information can exert critical influence over decision-making.

A fourth question that can aid policymakers is: “Who is benefiting from government spending?” Typically, governments believe that much of their spending is being directed toward “public goods”—health services that benefit the community but that typically are not demanded in sufficient volume by individuals acting alone.  They may also believe that a large share of public spending is benefiting families that are too poor to pay for medical care. Health accounts (which show spending patterns) combined with utilization data (which shows who is using various types of services) can demonstrate which population groups are benefiting from public health services, and whether the above suppositions are correct at a given moment in the development of a country’s health system.

Many other questions are of interest to policymakers, and can be addressed by using standard health accounts, or by conducting special studies that can be incorporated into health accounts exercises with marginal effort and cost. Several presentations and documents (listed below) provide some examples from the Latin America and the Caribbean region.

Related Links and Articles
Documents
The Regional Network Approach to NHA 1 MB, PDF Among the network approach objectives are fostering inter-country collaboration in learning how to implement NHA, solving common methodological issues and drawing from different country experiences.
National Health Accounts in LAC: Concept, Results and Policy Uses PDF A paper written by Alessandro Magnoli, Research Associate at the Harvard School of Public Health, with the support of the Inter-American Development Bank/INDES, September 2001.
Using National Health Accounts to Make Health Sector Policy: Findings of a Latin America/ Caribbean Regional Workshop 97 KB, PDF This report describes the topics discussed at a two part meeting entitled, “Using NHA to Inform Decision Making in the Health Sector.” It summarizes issues raised by participants—specifically about the NHA methodology, such as difficulties in data collection, and more generally about integrating NHA into the health sector reform policy process.
Documents from the PAHO Workshop on Utilization of Scientific Information The objective of this workshop was to formulate recommendations for the further development of PAHO’s Virtual Health Library (VHL) project and the creation of a collaborative review group on health equity. A variety of papers and presentations are available at this PAHO webpage in English and Spanish. 
World Health Report 2000  The WHR 2000 offers information about how health accounts are used for the essential function of health system stewardship.
Organizations
Alliance on Health Policy and Systems Research The Alliance on Health Policy and Systems Research, an initiative of the Global Forum for Health Research, aims to promote the generation, dissemination and use of knowledge for enhancing health system performance and evidence-based policy-making. The "Impact on Policy" section of the website provides a comprehensive database of literature, case studies, links and resources on the topic.
European Health Policy Group European Health Policy Group (EHPG) of the London School of Economics is a forum that encourages discussion between economists and political scientists. The specific theme for the EHPG stream will be regulation in health care. You can sign up for their mailing list here.
Harvard School of Public Health Data for Decision Making is a project initiated in 1991 with funding from USAID, in order to provide technical support to governments and policy makers on the issue of health sector reform. The site contains links to publications on public health policies and health accounts.
Latin America and Caribbean Regional Health Sector Reform Initiative (LACHSR)

LACHSR provides technical assistance to design, implement and monitor national health sector reform processes in an effort to increase equitable access to basis health services. It addresses issues of human resources developments; steering role strengthening; essential public health functions; and extension of social protection in health.

PAHO Health Systems Program Website for PAHO's Program on Organization and Management of Health System and Services, provides links to technical papers. 
United Nations Research Institute for Social Development UNRISD is an autonomous UN agency engaging in multidisciplinary research on the social dimensions of contemporary problems affecting development.

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