Health Systems Financing

Good governance has increasingly attained priority in international cooperation and health-system performance. Governance refers to all steering activities by public entities to influence the behaviour and activities of stakeholders involved. In the health sector, governance refers to a wide range of functions related to guidance and rule-making carried out by governments or other public decision-makers. More specifically, governance in the health-financing system applies to two different aspects: in addition to the approaches, strategies and policies determining how financial flows are implemented, managed and supervised according to rules- or outcome-based indicators, health-financing governance encompasses the question of how far resource generation, pooling and allocation are organised in an equitable, fair and sustainable manner. Individual and collective financial sustainability, burden sharing and social coherence or solidarity are essential parts of health-financing governance and depend deeply on societal priorities and values. Fairness of financing, transparent risk pooling and accountable purchasing of health services are intrinsic elements of governance in health financing and critical for achieving universal health coverage. The government is ultimately responsible for implementing an appropriate framework for a transparent, accountable and reliable health-financing system, for ensuring that the intermediate institutions can perform their functions, for executing effective and powerful supervision, and for providing civil society with the means to demand transparency and good financial governance. Health-financing indicators show the system’s ability to effectively mobilise and allocate resources, implement social protection and pooling schemes, and distribute the financial burden of care equitably. Essentially two groups of indicators exist for assessing governance in the health financing system: rules-based approaches consider the existence of appropriate policies, strategies, and codified approaches for governance; outcome-based indicators measure whether rules and procedures are effectively implemented or enforced and health-financing targets achieved.