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November 23, 2010

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Study calls for more health care efficiency

AROUND a billion people cannot afford any health services, and paying for health care pushes about 100 million people a year into poverty, the World Health Organization (WHO) said yesterday.

In a global report on financing health systems, the United Nations health body said all countries, rich and poor, could do more towards getting universal coverage and urged them to think about ways to increase efficiency and use new taxes and innovative fund-raising measures to boost access to health care.

"For many, health services just don't exist, for others they are not affordable. When they're not affordable it means you either choose not to use them or you suffer financial hardship," David Evans, WHO's director of health systems financing, said in a briefing on the report.

The World Health Report 2010 lays out steps countries could take to raise more funds and reduce financial barriers to obtaining health care, and to make health services more?efficient.

It suggested governments should look at diversifying sources of revenue from levies such as "sin" taxes on products like tobacco and alcohol, currency transaction taxes, and national "solidarity" taxes on certain sectors.

For example, if India were to implement a levy of 0.005 percent on foreign exchange transactions, it could raise US$370 million per year, the report said. Gabon raised US$30 million for health in 2009 by imposing a 1.5 percent levy on companies handling money transfers between other businesses and a 10?percent tax on mobile phone operators.

To improve efficiency, the report suggested 10 areas where changes could be made, including reducing unnecessary spending on drugs and?treatments.



 

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