“Appropriate healthcare financing is a means to ensure adequate funds for health care, provide equitable access to all population groups and reduce financial barriers to utilize health services”

Healthcare financing deals with generation, allocation and use of financial resources in the health system. Globally it has become increasingly recognized as an area of major policy relevance to achieve Universal Health Coverage (UHC). Understanding the country’s healthcare financing system allows to recognize current finances available for health, ways to raise more funds for health, mechanisms to efficiently and equitably allocate, purchase and spend finances to improve access to health services and reduce out of pocket expenditures that lead to catastrophe and impoverishment.

In India several Union and State level policy interventions in the recent past were designed and implemented to address gaps/challenges in healthcare financing. The National Health Mission, Rashtriya Swasthya Bima Yojana, State financed health insurance schemes, Public Private Partnerships in operating ambulances etc. were all interventions in this direction.  Further the National Health Policy 2017, gives impetus to increasing government finances to health, better utilization of existing resources to achieve better health outcomes, improving financial protection and strategically purchasing from the  not for profit and private sector.

Under this realm, the Healthcare Financing Division supports evidence based policy making and implementation support to Union and State governments in the area of healthcare financing with a focus on:

Health Accounts: This division is the National Health Accounts Technical Secretariat (NHATS) with a mandate to institutionalize Health Accounts in India. NHATS conducts periodic National and State Health Accounts using a global standard framework System of Health Accounts 2011(SHA 2011) contextualized to Indian/ State Health Systems. This allows to track the total health sector expenditures in the country by source, schemes, providers and functions. NHATS builds capacity at the national and state level for generating NHA by training individuals and institutions.It developed a strong network of institutions and organizations at state level across the country.

Report and monitor health financing indicators to achieve targets of National Health Policy 2017, Sustainable Development Goals and Universal Health Coverage. Collect data from primary / secondary sources, data validation, analysis and presentation of indicators on health expenditures and indicators for financial risk protection.

Policy inputs on allocation of resources, design of performance based incentives, health insurance, strategic purchasing of healthcare services, public private partnerships etc.