The welfare implications of public healthcare financing: A Macro-Micro simulation analysis of Uganda

Judith Kabajulizi, Marcus Keogh-Brown, Richard Smith

Research output: Contribution to journalArticle

Abstract

Studies on global health and development suggest that there is a strong correlation between the burden of disease and a country’s level of income. Poorer countries tend to suffer more deaths from preventable causes such as communicable, maternal, perinatal and nutritional conditions, compared to high-income countries. In low-income countries the government health expenditure share in the general government budget is low and out-of-pocket payments for healthcare relatively high. They also rely heavily on external resources for health funding, yet sustainability of external resource flows is not guaranteed. This paper explores increasing public healthcare funding from domestic resources mobilisation, and evaluates the impact of measures to achieve this on sectoral growth and poverty reduction rates in Uganda using a dynamic computable general equilibrium model. The paper shows that increasing the government health budget share, facilitates expanded healthcare services, improved population health, higher sectoral growth and reduced poverty. The agricultural sector is predicted to post the highest growth when compared to services and industry sectors under both domestic taxation and aid funding scenarios, while national poverty is predicted to decline from 31% to 12% of the population by 2020. The paper demonstrates that the most effective measure is to frontload investment in healthcare and generate additional domestic funding for health from a household tax earmarked for health.
Original languageEnglish
Pages (from-to)1437–1448
Number of pages11
JournalHealth Policy and Planning
Volume32
Early online date30 Oct 2017
DOIs
Publication statusPublished - Dec 2017

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Government Financing
Healthcare Financing
Uganda
Poverty
Delivery of Health Care
Health
Budgets
Health Expenditures
Growth
Health Resources
Taxes
Population
Cause of Death
Industry
Mothers

Keywords

  • Health financing
  • Macroeconomy
  • Development
  • Poverty
  • Uganda

Cite this

The welfare implications of public healthcare financing : A Macro-Micro simulation analysis of Uganda. / Kabajulizi, Judith; Keogh-Brown, Marcus; Smith, Richard .

In: Health Policy and Planning, Vol. 32, 12.2017, p. 1437–1448.

Research output: Contribution to journalArticle

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