How can the government use the results of health expenditure
analysis to formulate policies that will potentially improve health
outcomes of the population?
A country's health care
reform options largely depend on the ability of government health
ministries to recover their costs.
In
order to develop strategy alternatives for financing which could
have an important impact on the efficiency and quality of the health
system, and at the same time be financially sustainable, the
governments need detailed information about the expenditure,
financing and production in health.
Health accounts can be an essential input into sound health
policy decisions. They represent a key diagnostic tool to identify major
sources of inefficiency and inequity in health financing, as well as
to estimate and track total health spending, and the relative
contributions of public and private sectors. When based on reliable
information, health accounts analyses can inform policymakers about
whether health spending benefits the intended populations, is
directed toward the services that are likely to yield the best
health outcomes, and is being produced with the most efficient
combination of inputs.
Establishment of
“baseline” health expenditures estimates can be an essential
instrument to monitor the impact of health sector reform
initiatives. In this context, health accounts are useful at several
points in the policy process, including: (a) describing and
assessing the strengths and weaknesses of the health system; (b)
identifying possible strategies to improve the efficiency and equity
of health spending and government action in the sector; and (c)
monitoring the effects of policy changes on public and private
spending patterns.
In the recent years, the health accounts
methodologies have been employed to track health expenditures on
specific conditions, such as HIV/AIDS, malaria, reproductive and
mental health. These sub-analysis, while still not well
defined methodologically, represent an important trend responding to
the demands of governments and donors for disease-specific
information.