4.1.1 Healthcare Systems Flashcards
What is a health system?
All activists whose primary purpose is to promote, restore and maintain health
What are the system building blocks of healthcare systems?
- Service delivery
- Health workforce
- Health information
- Access to essential medicines
- Financing
- Leadership/ governance
What are the overall goals of healthcare systems?
Improved health
Responsiveness
Social and financial risk protection
Improved efficiency
How is healthcare financed?
- Out-of-pocket payments
- Private health insurance
- Social health insurance
- Tax-based financing
There tends to be a mix of different types of healthcare financing
What are the features of Out-of-pocket payments?
- Direct payments by patients for medical care
- No reimbursement
E.g. Medication, consultation with doctor
What are the pros and cons of out-of-pocket payments?
Advantages
- Contains health service demand
Disadvantages
- People may under-use health services
- Serious illness could result in high expenditures
- Costs those on lowest incomes proportionally more than highest
- Exacerbates health inequalities
What are the features of private health insurance?
- Individuals contribute to fund by paying premiums to insurance company
- Costs of healthcare covered when required
- Some employers may do this scheme
What are the advantages and disadvantages of private health insurance?
Advantages
- Protection against high expenditure
- Patients have a choice of insurer
- Reduces burden on public finances
Disadvantages
- Costs those on lowest incomes more Regressive
- Exacerbate health inequalities
- Moral hazard- over consumption and over provision of healthcare
- Adverse selection- lower risk will not purchase, meaning average level of risk= high
What are the features of social health insurance?
Insurance system where employers and employees contribute to fund
- Employees contribute part of their salary and employers match this
Government pays contributions for those out of work
Provided by private healthcare providers
What are the advantages and disadvantages of social health insurance?
Advantages
- Protection against high cost
- Universal coverage through government contributions
- Access based on need
- Social insurance funds can be kept separate from other government funds- more certainty about health spending
Disadvantages
- High admin costs- reimbursement
- May be opt-out for higher earners
How is taxation used?
Healthcare funded through general taxation
Provided mostly by state-controlled providers and doctors
What is the taxation system called?
Beveridge system
What are the advantages and disadvantages of taxation?
Advantages
- Universal coverage
- Access based on need
- Fewer inequalities
- Lower admin costs
- Controls on spending, prioritisation
Disadvantages
- Less predictable healthcare budgets
- Moral hazard- overuse of healthcare
- Less choice of providers
