Tag: health systems

What will UK health officials do with all that excess demand?

Ever growing numbers of drug_shortageUK citizens are turning to private, self-paid, health care in the UK.

Mark Hellowell’s excellent piece “How the NHS will die” examines the forces at work, and ponders what actions may be taken to resolve this ‘excess demand’ problem. When the problem manifested in the late 1990s, UK officials ultimately resolved it with 10 years of public expenditure increases. Few predict public expenditure increases sufficient to resolve the problem will be forthcoming this time around.

Health officials invariably pursue efficiency gains to close such gaps. Efforts to do just that in outpatient drug spending, however, appear to be rebounding with a vengeance – to eat up ever larger chunks of the healthcare budget. For much of the past year, the Department of Health has been forced to resolve widespread drug shortages with month-to-month agreements to reimburse pharmacies at prices much higher than the official NHS tariffs. The Times put the extra costs for April – November 2017 at ₤200M. Ben Goldacre and co at Oxford give a tally through December of ₤285M. And, the unpredictable reimbursement of higher-than-official prices works more as a band-aid than a solution, since the shortages don’t appear to be diminishing.

Am I being too pessimistic? Are promising developments underway that I’m missing? Silver linings to accompany the gray cloud?

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Dealing with (mis)alignment between public financial management & health finance

misalignment

I’ve worked on health services reforms in more than 20 developing and transition countries. I’ve learned that the soundness of the interface between health finance arrangements and public financial management structures and processes is critical to the effectiveness of service delivery. Yet, health policy practitioners in these countries are rarely very knowledgeable about this topic; and, they tend to focus on finance mechanisms ‘further down’ (e.g. provider payment; or, how funds are managed within facilities). If the expertise gap is identified, more often than not, a general public financial management expert is brought in. This rarely helps though, as sound practices and principles for managing finances in the core of the public sector frequently conflict with managing finances for service delivery. And few public financial management experts are familiar with the institutional arrangements health agencies use to ‘govern’ finance. Both in the field, and in my teaching, I have longed for a high-quality, accessible resource on this topic. And Hurray! A top-notch team (Cheryl Cashin, Danielle Bloom, Susan Sparkes, Helene Barroy, Joe Kutzin, and Sheila O’Dougherty) at the WHO has developed one: “Aligning Public Financial Management and Health Financing: Sustaining Progress Toward Universal Health Coverage”. I heartily recommend it to any and all health policy practitioners and educators.