Health Economics and the Politics of Health Financing
Health Economics and the Politics of Health Financing
This chapter examines health economics, financing, and management from the contrasting perspectives of mainstream and social justice-oriented approaches. It evaluates how health care is different from other goods and services and why a free-market approach cannot guarantee equitable or efficient distribution of health care. It scrutinizes different approaches to health care financing, comparing revenue-raising and remuneration arrangements, and the US and Canadian health care systems. It analyzes the aims, assumptions, and uses of cost-analyses and implications for equity, efficiency, and priority-setting. It also assesses the role of World Bank and other dominant global health actors in shaping market approaches to health care in low- and middle-income countries since the 1980s as well as current donor financing strategies. The chapter also covers issues of corruption and medical tourism that jeopardize health care equity. It concludes by presenting alternative social justice approaches to investing for, rather than in, health and health equity.
Keywords: health economics, resource allocation, health care financing, corruption, medical tourism, development assistance, efficiency, equity, cost–benefit analysis, cost-effectiveness analysis
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