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Health care financing refers to a system that pays

even first peso/dollar healthcare costs on a collective basis

via a employer or government funding. Such a system

creates its own set of incentives for patients and providers.

The only way to substantially reduce the cost of such a

system is to lower payments to providers, which will have

an adverse effect on the quality of services provided, and to

ration the amount oh healthcare available patients.

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A manner of illustrating the financing of the health system is by identifying the major providers of health services and the role played by the government.

The health system is supported mainly from taxes and revenues of the government. The providers of health services are private individuals and private organizations with the government playing coordinating or regulatory special services.

As a market commodity, some aspects of health care may be financed directly by consumers through a system of user charges or fees for service.

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As a social good, aspects of health care may be directly financed by the government through public subsidy program supported by general or specific taxes.

Current form and levels of operation, none of the methods of health care financing could by itself be considered adequate to respond to the totality of health care needs in the countries where they operate.

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Various options for financing health cares are as follows:

Users Charges:

It is a means of financing health care. These are particularly suited for those aspects of health care that are considered private goods; benefits of service accrue directly to the user.

It is appropriate for consumers that are willing and able to pay on a fee-for-service basis.

For example you are admitted in a hospital and all the medical bill/payments was paid by your own money not by the help of insurances or others.

Public Subsidy

Is most appropriate for those aspects of health care whose benefits are widely spread and therefore not quite amenable to a system of user charges.

Community Financing

Financing health care is supported mainly from taxes and revenues of the government.

Has been demonstrated to be effective not only to mobilizing resources for health care, but also evoking improved health consciousness among community members and stimulating collective action to achieve common health goals

Health Insurance

Health Insurance is a structure form of health financing based on a system, risk sharing. The main advantage of health insurance as a form of financing is the ability to raise revenues commensurate with assured levels of health cost protection offered to the insurer to make their sum into small costs instead of full coverage of costs of an expensive event as unexpected medical needs a certain contingencies as accident or damage.

Health Insurance examples are PhilHealth and PhilCare.

Involvement of private sector

It is often in response to a market need or demand for services with corresponding willingness to pay. It is largely influenced by market factors but also be encourage by government.

Forms of involvement:

1. Company financed health benefits for employees and their dependent.

2. Sponsorship of medical bills of needy patients by philanthropic societies, individuals and groups.

3. Spontaneous or inspired public donations to finance medical and other emergency needs of disaster victims.

4. Special lotteries to raise funds to support the operation of a medical facility or service.

Medical care is available in major cities

throughout the Philippines. However, medical services

are limited in rural and remote areas. In general,

hospitals and medicines in the country are quite

affordable, doctors and nurses are properly trained.

Nonetheless, even the best hospitals in the country are

generally below the standards that the Filipino citizens

needs. That is why people in this way can be used to

develop primary health for rural people who lack any

sort of services.

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Health care can be funded by:

• more tax revenue.

• more exterior assistance.

• Entailing employees to endow with distinct services.

• fund-raising.

• community financing and charitable health insurance.

• Economizing resourceful use of assets.

• Selecting less costly methods of services deliverance.

The government provides:

• Medical staff.

• Technical guidance.

• Logistic support.

• Helped in the community volunteers.

Majority community financing context :

• Severe economic constraints.

• Political instability.

• Lack of good governance.

Health Funding

It is how the government spend the income for

health purposes.

Community financing methods are the extent of

community participation, contribution to financial means

against illness and increase in access to health care by

low-income sectors.