Healthcare Finance Flashcards
(13 cards)
Definition of healthcare systems
All activities whose primary purpose is to promote, restore + maintain health
6 building blocks of health systems
- service delivery
- health workforce
- governance
- health information systems
- access to essential medicines
- financing
Types of healthcare financing
- out of pocket payments
- private health insurance
- social health insurance
- tax based financing
Outline out of pocket payments
direct payment by patients with no reimbursement
e.g. medications
Advantages + disadvantages of out of pocket payments
- Adv - contains health service demand
- Disadv- people under use health services, costs those on lower incomes proportionally more, exacerbates health inequalities
Outline private health insurance
Individuals contribute to a fund by paying in advance to a company
The cost of their healthcare is covered when required
Advantages + disadvantages of private health insurance
- Adv - protects against catastrophic expenditure, patients have choice on insurer, reduces burden on public money
- Disadv - costs those on lower incomes proportionally more, exacerbates health inequalities, overuse of health systems
Outline social health insurance
Insurance system where employees contribute a proportion of their salary + employers match it to a private health provider
Where is social health insurance used?
Germany
Japan
Advantages + disadvantages of social health insurance
- Adv- protects against catastrophic expenditure, universal coverage as the government cover the unemployed, access based on need
- Disadv- high administration cost, high earners can opt out
Outline tax based financing
Healthcare funded through general taxation
Where is tax based financing used?
UK
Sweden
Cuba
Advantages + disadvantages of tax based financing
- Adv- equal + universal care, access based on need, controls on spending
- Disadv- healthcare budgets are not predictable, people may overuse healthcare, less choice of provider
