HEALTHCARE FINANCING AND PAYMENT OPTIONS IN PAKISTAN; A REVIEW OF PAKISTAN’S HEALTH FINANCING SYSTEM

Abstract

ABSTRACT
INTRODUCTION: Health care financing is funds that are allocated for the populations, a
system to mobilize funds to run healthcare systems and to develop payment mechanism for
health care systems. In developing countries planners mostly face issues in managing the
healthcare financing. States fail to regulate service and goods and its provision to the population
leading to market failure of products and services which makes the financing system complex.
Pakistan is not even near to achieve targets to spent good on health and it has become a dream
for Pakistan to spent 5% of its GDP on health. This study used a semi-structured review of the
different articles that are published in English language from 2008 to 2019. Data was extracted
from two search engines “Google scholar” and “PubMed”. The terms used in search engine
were “Health care spending”, “Health Financing” “Out-of-pocket payments”, “Health
insurance”, and “Universal health coverage”. Theoretically viewing health financing in any
country can be done in five ways that are taxation (direct and indirect), private purchased
insurance, financing through community, out-of-pocket payment and social insurance. In
Pakistan, 61% of payments are out-of-pocket as per the National Health Accounts. It is also
estimated that the overall spending of OOP for private health services has also reduced from
88.2% in the year 2009 to 86.3% in 2011.Different strategies can be used to improve the
payment methods for healthcare delivery. Develop countries are now using health insurance
system which are almost universal health coverage and can reduce inequity within the
populations. Pakistan healthcare financing system must have a clear vision for social protection
and universal health coverage. This will serve as a mean of equitable and accessible healthcare
service delivery in Pakistan. National health financing policies should be developed to strengthen
financing system which further can support in development of health financing strategies at
provincial level.