Using Health Accounts

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. 

Please go to the following pages for more information on how the results of health accounts estimates can be used for:

Related Links and Articles

Documents
National Health Accounts in LAC: Concept, Results and Policy Uses

After highlighting recent results of data collection, the paper focuses on policy applications of NHA in supporting the financial dimension of health reforms. IADB/INDES/Harvard, Alessandro Magnoli, Sept. 2001.

Investment in Population Health in Five OECD Countries OECD paper on trends in health and health inequalities and population health investments in OECD countries. It focuses on population health investment strategies and institutions in Australia, Canada, Korea, Sweden and Switzerland. OECD, Jan Bennett, Apr. 2003.

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