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SOURCES OF FINANCE
IN HEALTHCARE
R.Sam vivek
2nd MBA
Health Care Finance
 “Function of a health system concerned
with the accumulation, mobilization and
allocation of money to cover the health
needs of the people, individually and
collectively, in the health system.” (WHO)
PROCESS OF FINANCING
Revenue collection :
1. Taxation-most equitable system of financing
2. Health insurance contributions
3. User pays (out of pocket, no reimbursement)
4. Donor funding/Grants
Taxes for Government Healthcare Funds
Similar to the “Education Cess on Income Tax”
and “Secondary and Higher Education Cess on
Income Tax”, the Government can consider
introducing a health related component within the
Income Tax structure that will act as a secondary
source for Government Healthcare funds to be
utilized in public health services
Health insurance
Health insurance is a type of insurance
coverage that covers the cost of an insured
individual's medical and surgical expenses.
Sources of finance in healthcare
USER PAY
 Your expenses for medical care that aren't
reimbursed by insurance. Out-of-pocket
costs include deductibles, coinsurance, and
copayments for covered services plus all
costs for services that aren't covered.
Donor funding/Grants
Donor/Grants are non-repayable funds or
products disbursed by one party, often a
government department, corporation, foundation or
trust, to a recipient, often a nonprofit entity,
educational institution, business or an individual.
Mobilization
 Health Risk
 Subsidy
 Cross Subsidy
POOLING
(Across equal income)
CONTRIBUTION NET TRANSFER
CROSS SUBSIDY
(Across equal risk)
Risk
Low
High
Income
Low
High
Purchasing of health services :
 It is done by public or private agencies that spend money
either to provide services directly or to purchase services
for their beneficiaries.
 Purchaser :
 Ministry of health (MOH)
 Social security agencies
 District health board
 Insurance organization
 Individual or household
REVENUES
Sources of finance in healthcare
Sources of finance in healthcare
THANQ FRIENDS

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Sources of finance in healthcare

  • 1. SOURCES OF FINANCE IN HEALTHCARE R.Sam vivek 2nd MBA
  • 2. Health Care Finance  “Function of a health system concerned with the accumulation, mobilization and allocation of money to cover the health needs of the people, individually and collectively, in the health system.” (WHO)
  • 4. Revenue collection : 1. Taxation-most equitable system of financing 2. Health insurance contributions 3. User pays (out of pocket, no reimbursement) 4. Donor funding/Grants
  • 5. Taxes for Government Healthcare Funds Similar to the “Education Cess on Income Tax” and “Secondary and Higher Education Cess on Income Tax”, the Government can consider introducing a health related component within the Income Tax structure that will act as a secondary source for Government Healthcare funds to be utilized in public health services
  • 6. Health insurance Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses.
  • 8. USER PAY  Your expenses for medical care that aren't reimbursed by insurance. Out-of-pocket costs include deductibles, coinsurance, and copayments for covered services plus all costs for services that aren't covered.
  • 9. Donor funding/Grants Donor/Grants are non-repayable funds or products disbursed by one party, often a government department, corporation, foundation or trust, to a recipient, often a nonprofit entity, educational institution, business or an individual.
  • 10. Mobilization  Health Risk  Subsidy  Cross Subsidy
  • 11. POOLING (Across equal income) CONTRIBUTION NET TRANSFER CROSS SUBSIDY (Across equal risk) Risk Low High Income Low High
  • 12. Purchasing of health services :  It is done by public or private agencies that spend money either to provide services directly or to purchase services for their beneficiaries.  Purchaser :  Ministry of health (MOH)  Social security agencies  District health board  Insurance organization  Individual or household