Policies for financing the health sector

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Abstract
Throughout the developed and the developing world, health services are in trouble. Current policies have failed to mobilize enough financial, human and other resources to meet existing or anticipated needs. Health for All by the Year 2000, in identifying deficiencies in health and health services, has also drawn attention to deficiencies in the resources devoted to the health sector, and in health sector planning and financial analysis. Increasing attention is being focused on the subject of health service financing, on methods of planning and analysis, and on ways of bridging the health sector resource gap. This paper identifies some of the broad policy options for financing the health sector, and discusses them with respect to a number of questions: Who pays (and who benefits)? How much? For what? Through what mechanisms? A number of financing mechanisms are discussed within the frequently used classification of public and private sources of finance. The main features of each approach are summarized, and the major strengths and weaknesses discussed. Finally, directions for further research are indicated.

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