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The Financial Express

Out-of-pocket health expenses increasing!

| Updated: October 24, 2017 21:33:20


Out-of-pocket health expenses increasing!

Both the government-run hospitals and private sector-operated  healthcare facilities have often come under fire for the high  costs and indifferent  quality of  services.  In such an  avalanche of  criticism,  an important  issue of  burden-sharing in respect of   health expenditure between the service providers and the individual recipients  has been kicked into the long grass.

But no more! The data released  by  the report on 'Bangladesh National Health Accounts 1997-2015' has been an eye-opener to a startling but nonetheless palpable  gulf between the health costs incurred by the government and those borne by  individual citizens. It has been found out that patients' 'out-of-pocket' payment (OOP) for healthcare amounts to 67 per cent as against the government's paltry 23 per cent. The per capita health cost in urban areas was estimated at Tk 3,083 and that for the countryside was put at Tk 1,894.

Only four years back the citizens would have paid 63 per cent to the government's 27 per cent. Given the already back-breaking   burden  on the households to foot  an increased  health bill even by one  per cent per annum is excruciating for the low-income groups. It is, however, noted that the non-governmental organisations (NGOs) and the donor institutions shoulder 10 per cent of the costs.

What    particularly draws a flak is the fact that whilst the costs of healthcare are increasing, the government's expenditure  in health sector  is decreasing! Among the Saarc countries, Bangladeshis spend the most on healthcare. This points to a potential domestic health market that should be catered for with a vision for service.

Sixtyseven per cent  of  the health cost    borne by the citizenry  may not be the whole truth. There is an add-on in the form of  medical tourism  their compatriots undertake in India, Thailand, Malayasia, Singapore, Honk Kong, etc. Thus the foreign exchange component of the expenditure may need to be factored into national accounting.

Our poor people have to depend on public sector hospitals. But it's a pity that even there, the public have to spend from their pockets whereas they would go there in the hope for treatment free of cost. From medicines to doctors' fees to pathological tests exorbitant charges are made and realised. In the process, poor people are pauperised. Often they will be made to buy unnecessary medicines or undergo diagnostic tests or would be hauled up on an operation table  just for the sake of making money .

The US-based Journal of Preventive Medicine and Public Health in an article published in February 2017, called for policy options for building a  stronger financial support mechanism. It said: government should consider devoting more resource to provide free or subsidized care. In parallel with government action….  prudential and sustainable risk-pooling mechanism may help attract enthusiastic community-based health insurance plans.

It is an oft-expressed view of health professionals that a bigger allocation than 2.8 per cent of the gross domestic product (GDP) to the   health sector be treated as an investment in human resource development.

It is not a tall order given that Bangladesh enjoys certain edges over other developing countries in such areas as a primary and secondary healthcare  infrastructure, longer life span made possible through a curb on child mortality, increased health consciousness and above all, a strong pharmaceutical industrial base.

On a word of caution, the increase in the budgetary allocation to the health sector should be  linked to a definitive success in curbing corruption,  malpractice and waste.

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