ECO 112 Labor Health Economics 2023-2024 Part 2 PDF

It has been said that “The Road is Made by Walking, get Understanding.” 1 HUMAN DEVELOPMENT ECONOMICS COVENANT UNIVERSITY OTA NIGERIA ECO II2 2 HEALTHCARE SYSTEMS Human Development Economics...

It has been said that “The Road is Made by Walking, get Understanding.” 1 HUMAN DEVELOPMENT ECONOMICS COVENANT UNIVERSITY OTA NIGERIA ECO II2 2 HEALTHCARE SYSTEMS Human Development Economics focuses on applying economic principles to issues in both Labour and Health Economics and attracting needed Government interventions and economic instruments in the labour and health sectors for a better living standard of the society 3 Objectives The objectives of the course are to: I. Explain Health Information Sources II. Describe Consequences of Poor Healthcare III. Convey nature of Financing Healthcare IV. Explain Challenges and Constraints 4 Learning Outcomes On completion of the course, students should be able to: I. Know Health Information Sources II. Able to understand Threats and Consequences of Poor Healthcare III. Convey nature of Financing Healthcare IV. Explain Challenges and Constraints 5 Sources of Health Information/Statistics  Vital Registration Systems- births, deaths, marriages.  Hospital Records  Records of Health Ministries/Authorities.  General/Private Practitioners 'Records.  Industrial/Organizational Health Records.  School Health Records.  Sample Survey  Publications- - WHO yearbook on Epidemiological and Vital Statistics. - UN Demographic Yearbook. - UNICEF Reports, etc. 6 Consequences of poor health  Pain and suffering  reduces human energies  makes millions less able to cope with life  shackles human capital  reduces returns to learning impedes entrepreneurial activities holds back growth of gross national product hinders growth and development Reduces Productivity 7 increases mortality rate brings about poor health  increases government expenditure on health increases patience –doctor ratio decreases life expectancy poor attraction of investors increases death rate  increases the spread of diseases leads to unemployment, affects per capita income 8 Solution More-budget poverty alleviation anti -misappropriation measures training Manpower/development of personnel motivation better quality of services good personnel behavior 9 staff motivation health education establishment of more PHCs subsidizing health care cost jettisoning of harmful cultural practices public confidence build up via seminars and equipping health centers health education. 10 Current Health Situation in Nigeria Nigeria still lag behind as far as provision of quality health care is concerned. Unlike in developed countries, quality healthcare system is not readily available and accessibility. High poverty rate in developing countries as overwhelming population are below poverty level. Nigeria’s health care system manifests high burden of disease and low health care expenditure. Nigerian government spends 5.3 per cent of general expenditure on health, less than the proposed 15 per cent of Abuja Declaration in 2001 (World Health Organization, 2018). 11 Financing Healthcare The private Out-of-Pocket (OOP) expenditure in Nigeria accounts for the main expenditure on health. This state of health care financing limits equitable access to quality healthcare Huge population (53.5%) are living below income poverty line of PPP $1. 90 a day (Human Development Report, 2019). 39 per cent of the Nigerian population are able to access the health services they need without the risk of financial hardship when paying for them (World Health Organization, 2018). 12 Concepts Healthcare financing can be defined as the mobilization of funds for healthcare services (Oyefabi, Aliyu & Idris, 2014). Health financing refers to the “function of a health system concerned with the mobilization, accumulation and allocation of money to cover the health needs of the people, individually and collectively, in the health system… the purpose of health financing is to make funding available, as well as to set the right financial incentives to providers, to ensure that all individuals have access to effective public health and personal13 HEALTH: is the general condition of a person in all aspects. It is also a level of functional and/or metabolic efficiency of an organism, often implicitly human. WHO1(948) defined health as "a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity. Health is a relative state in which one is able to function well physically, mentally, socially, and spiritually to express the full range of one's unique potentialities within the environment in which one lives. 14  Health Care Services offered to ensure and provide health include prevention, treatment, and management of illness and the preservation of mental and physical well-being through the services offered by the medical and allied health professions  Role for Government- Based on who can pay or who needs it or some combination - establish licensing requirements to ensure minimum level of quality and promotes of insurance to reduce costs 15 Government health care financing -provision of money, funds or resources by government to maintain people’s health. (Alfred et al, 2016). Sound affordability and accessibility of healthcare services- equity in access to medical services as well as guarantee financial risk protection (Riman et al, 2012). Government health care finance- constitute a negligible proportion of the total GDP (4.5% as at 2020). 16 Sources of Health Care financing  Tax-based public sector health financing- derived from proceeds of tax-based revenue of government across all levels and sectors.  User Fee Charges (Out of Pocket Payment (OOP) – Private health expenditures.  Aids, Grants or Donor Agency funding-Donations in cash or kind from charitable organizations and philanthropic individuals.  Voluntary prepayment-private health insurance scheme that is funded from non-public programs prior to obtaining health care services (IHME, 2018).  Revolving fund- allows users to pay for curative services while preventive services shall be subsidized through drug revolving fund. 17 Direct Government/Private Financing- Public and private employers are accommodated in this scheme. Government employers use government hospitals and private employers enter into fulltime or part-time relationship with private hospital. Community Self Help - community voluntary contribution to provide for health facilities. It can take the form of fund raising and use the funds in building clinics, PHCs or even dispensaries. 18 Types of Healthcare Production Costs There are basically two types of production cost associated with health care namely: Implicit cost reflect the opportunity costs of using any resources the medical firm owns. For example, a general practitioner (GP) may own the physical assets used in producing physician service. Explicit cost e.g. wage payments to staff, utility bills, and medical supply expenses. 19 Characteristics of Health care financing in Nigeria low investment by the government, extensive out-of-pocket payments, limited insurance coverage, and low donor funding 20 Challenges/Constraints  Economics factors – high cost of treatment, low health budget, poverty  Social factors – illiteracy, corruption, indiscipline, poor behavior, self centered/selfish interest  Cultural beliefs – belief on non-orthodox health care, Bad cultural practices  Equipment – lack of modern equipment  Inadequate and unskilled personnel  Low state of development  Corruption  Environmental degradation  Inadequate and poor access to health facilities 21 Low motivation and remuneration; Poor health care financing/ low health budget Lack of proximity to health facilities Confidence in TBAs Quality of health care service Poor human relations by the providers Poor maintenance culture with respect to health facilities, lack of essential drugs and deliverables Poor waste disposal issues 22 Low status of women, Poor maintenance culture with respect to health facilities, Lack of essential drugs and deliverables Poor health infrastructure poorly equipped laboratory, Low community participation Low staff motivation Poor sharing of information 23 Rapid Population growth Low per capita income/poverty Food insecurity Poor living conditions Bad leadership Emigration Unemployment 24 References Population health reports World Health reports Social and Preventive Medicine Texts  J Epidemiol Community Health Bulletin of WHO and related Agencies Surfing online materials 25 End 26