Health Financing Regional Profile 2018TRANSITIONING TO INTEGRATED FINANCING AND SERVICE DELIVERY OF PRIORITY PUBLIC HEALTH SERVICES
RegionPacificWesternOrganizationWorld Health
Health Financing Regional Profile 2018TRANSITIONING TO INTEGRATED FINANCING AND SERVICE DELIVERYOF PRIORITY PUBLIC HEALTH SERVICES
RegionPacificWesternOrganizationWorld Health
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CONTENTSHealth Financing Regional Profile: Transitioning to Integrated Financing and Service Delivery of Priority Public Health Services
iv
v
1
3
17
25
27
28
Country and area abbreviations
Acknowledgements
Introduction
Overview of regional context
Transitioning to integrated financing and service delivery
• Strengthening service delivery across core programme elements
• Making better use of resources• Increasing domestic financing for public health
Summary
References
Annexes
iii
AUS Australia
BRN Brunei Darussalam
KHM Cambodia
CHN China
COK Cook Islands
FJI Fiji
JPN Japan
KIR Kiribati
LAO Lao People’s Democratic Republic
MYS Malaysia
MHL Marshall Islands
FSM Micronesia (Federated States of)
MNG Mongolia
NRU Nauru
NZL New Zealand
NIU Niue
PLW Palau
PNG Papua New Guinea
PHL Philippines
KOR Republic of Korea
WSM Samoa
SGP Singapore
SLB Solomon Islands
TON Tonga
TUV Tuvalu
VUT Vanuatu
VNM Viet Nam
Country & areaabbreviations(in figures and tables)
iv
Acknowledgements
This paper was based on the WHO Regional
Framework of Action on Transitioning to Integrated
Financing of Priority Public Health Services in the
Western Pacific that was adopted at the sixty-
eighth session of the Regional Committee for the
Western Pacific in October 2017. The framework
served as guidance to Member States and was
produced through collaboration of several units:
Health Policy and Financing; End Tuberculosis and
Leprosy; HIV, Hepatitis, and Sexually Transmitted
Infections; Expanded Programme on Immunization;
and Integrated Service Delivery. This paper was
developed by the Health Policy and Financing
team including Peter Cowley, Annie Chu, Maria
Peña, Ronald Tamangan and Luke Elich and with Ke
Xu, Rochelle Eng and Marlon Sison. Management
support was received from Vivian Lin, Director of
the Division of Health Systems at the WHO Regional
Office for the Western Pacific. Valuable comments
were received from Susan Sparkes, Joe Kutzin and
Agnes Soucat, and administrative support from
Enrico Sevilla and Nuria Quiroz Chirinos.
Financial support for the work was provided by the
Ministry of Health, Labour and Welfare, Japan; the
Ministry of Health and Welfare, Republic of Korea;
and the Department for International Development,
United Kingdom of Great Britain and Northern Ireland.
The views expressed in this publication are those
of the authors and do not necessarily reflect those
of WHO.
HEALTH FINANCING REGIONAL PROFILE v
vi
Introduction
Strengthening essential public health functions
is relevant for all health systems as they
underpin priority public health services in all
countries. A resilient health system requires the
capacity to adapt to change, including in the
areas of public health preparedness, community
engagement in disease prevention and
emergency preparedness and response, and an
ability to withstand economic shocks. Essential
public health functions refer to a set of functions
fundamental to the protection of population
health that addresses the determinants of
health and treats disease. The need to secure
essential public health functions is relevant
for countries undergoing service delivery and
budgeting reforms, and particularly critical to
countries facing reduced external funding, such
as funding from global health initiatives.
During the sixty-eighth session of the Regional
Committee for the Western Pacific in October
2017, Member States endorsed the Regional
Framework for Action on Transitioning to
Integrated Financing of Priority Public Health
Services in the Western Pacific (1). In consultation
with Member States, independent experts and
development partners, WHO developed the
Regional Framework for Action, which provides
guidance to countries on using a whole-of-
system approach to secure essential public
health functions and respond to changing
population needs for more sustainable and
resilient systems that deliver the best health
outcomes. It builds on the regional action
framework Universal Health Coverage: Moving
Towards Better Health and the Regional
Action Agenda on Achieving the Sustainable
Development Goals in the Western Pacific, both
adopted by the Regional Committee (2,3).
This paper contains three major sections.
The first section outlines the regional health
financing context and key challenges in
the Western Pacific. The second section
highlights the need to take a whole-of-system
approach to move towards more integrated
financing and care through improving health
system efficiencies and increasing domestic
financing for health, drawing from the Regional
Framework for Action and the regional analytical
approach for policy development on improving
the efficiency and sustainability of priority
public health programmes (Annex 1). The last
section emphasizes the importance of political
commitment and governing the transition
process in a phased implementation approach.
HEALTH FINANCING REGIONAL PROFILE 1
2
Overview ofregional context
In the Western Pacific Region, great progress has
been made in reducing the burden of communicable
diseases, such as tuberculosis (TB), HIV/AIDS, malaria
and others, over the past few decades. Since 2000,
TB prevalence has been reduced by over 25% and
TB mortality has declined by over 53%1 (4). There have
also been impressive gains in lowering the burden of
HIV/AIDS and increasing antiretroviral therapy (ART)
coverage in the Region (5). Nine out of 10 malaria-
endemic countries achieved their malaria-related
targets in the Millennium Development Goals (6), and
millions of deaths and disabilities have been prevented
due to the work of the Expanded Programme on
Immunization (EPI) (7). However, sustaining the
progress requires continued and targeted efforts to
ensure equitable coverage and access to treatment
for vulnerable and hard-to-reach populations.
In addition, the health needs of the populations in
the Region are changing. Environmental, workplace
and lifestyle diseases have accompanied economic
progress. Noncommunicable diseases (NCDs)
account for nearly 80% of preventable deaths in the
Region (8), while many countries are also undergoing
accelerated ageing. Over 200 health security threats
are detected each year. Epidemics and disasters
continue to threaten millions of people each year,
and health inequalities in some rapidly developing
countries are growing rather than shrinking. The
fiscal context with rapid economic development
in many countries may favour increasing public
spending on health.
These ongoing and new challenges, in addition
to the increasing expectations from citizens and
communities for access to quality health services, are
posing complexities in terms of how to address public
health priorities from a whole-of-system perspective.
Over the past decade, several countries in the Western
Pacific Region have increased their current health
expenditure as a share of gross domestic product
(GDP). The lower-middle- and upper-middle-income
Asian countries spend between roughly 3% and over
6% of their GDP on health, while there is a much larger
range in the Pacific island countries (Figs 1 and 2),
with some reaching more than 13% given significant
external funding and government spending.
1 This considers only HIV-negative individuals.
HEALTH FINANCING REGIONAL PROFILE 3
Fig. 1Current health expenditure as a share
of GDP for Asian countries, 2015LMI: lower-middle-income; UMI: upper-middle-income; HI: high-income; GGHE-D: domestic general government health expenditure; PVT-D: domestic private health expenditure.Note: From the OECD countries: Australia, New Zealand and Japan have been incorporated using their latest estimates. 2014 estimates for Australia and Japan and 2013 estimates for New Zealand.
Source: WHO Global Health Expenditure Database (accessed 6 February 2018) and OECD Stat Database (accessed6 April 2018).
Fig. 2Current health expenditure as a share of GDP
for Pacific island countries, 2015
LMI: lower-middle-income; UMI: upper-middle-income; HI: high-income; GGHE-D: domestic general government health expenditure; PVT-D: domestic private health expenditure.Note: Cook Islands and Kiribati estimates are based on 2014.
Source: WHO Global Health Expenditure Database (accessed 6 February 2018). World Bank income classifications. (accessed 13 June 2018)
LAO MNG PHL
LMI UMI HI
VNM KHM MYS CHN BRN SGP KOR AUS NZL JPN
4
6
8
10
12
14
GGHE−D (%) PVT−D (%) External (%)
0
2
LMI UMI HI
GGHE−D (%) PVT−D (%) External (%)
0
2
4
6
8
10
12
14
16
18
20
22
VUT PNG SLB KIR FSM COK FJI NRU WSM TON NIU TUV MHL PLW
4
For the lower-middle-income Asian countries, the proportion of private health expenditures,
mostly from out-of-pocket payments, is nearly half or more of current health expenditures
(Fig. 3). Several countries have a mixed health financing system that includes social health
insurance, such as China, Mongolia, the Philippines and Viet Nam. Some countries also have
other voluntary schemes, such as private health insurance. Cambodia, the Lao People’s
Democratic Republic, Mongolia and Viet Nam receive external funds from donors, including
from global health initiatives.
In Pacific island countries, the composition of health expenditures shows that the majority
derive from government and external funds, with social health insurance in a few countries
(Fig. 4). While the out-of-pocket health expenditures are lower than compared to Asian coun-
tries, there are still geographical and financial barriers to accessing health services, which
include spending on transport costs. Also, estimates over time show that there is significant
volatility in external health expenditures in several Pacific island countries.
Several countries in the Region are facing a decline of external funding from bilateral partners
and global health initiatives, such as the Global Fund to Fight AIDS, Tuberculosis and Malaria;
Gavi, the Vaccine Alliance; and the United States President’s Emergency Plan for AIDS Relief
(PEPFAR). The global health initiatives, in particular, triggered a rapid, large-scale response
to disease through direct cash and in-kind funding to develop disease control programmes.
Since 2003, the Global Fund has disbursed US$ 2.5 billion in treating and preventing AIDS, TB
and malaria, and in building more resilient and sustainable systems for health in the Western
Pacific Region. Of the total Global Fund grants disbursed, 35.3% was allocated for HIV/AIDS
programmes, 32.6% for TB, 28.3% for malaria and 4.2% for others/health systems strengthening.
In the Global Fund Round 8 grants.2 health systems strengthening funding allocated to coun-
tries accounted for 37% of the total Global Fund funding (9).
2 From 2002 to 2013, the Global Fund operated through a rounds-based funding model andRound 8 was launched in March 2008. The Global Fund launched a new funding model in 2013.
HEALTH FINANCING REGIONAL PROFILE 5
LMI: lower-middle-income; UMI: upper-middle-income; HI: high-income; “Public” refers to domestic public revenues; “External” refers to transfers from foreign origin; “Other private” refers to other domestic revenues from corporations or non-profits; OOP: out-of-pocket payment. Note: From the OECD countries: Australia, New Zealand and Japan have been incorporated using their latest estimates, 2014 estimates for Australia and Japan and, 2013 estimates for New Zealand.
Source: WHO Global Health Expenditure Database (accessed 6 February 2018) and OECD Stat Database (accessed6 April 2018).
External Other private Household OOPPublic Social insurance contributions Voluntary prepayment
0(%) 10 20 30 40 50 60 70 80 90 100
HI
UMI
LMI
KORSGPAUSJPNNZLBRN
MYSCHN
KHMPHLLAO
VNMMNG
PLW
FJIWSMTONMHLCOKNIU
NRUTUV
VUTPNGSLBFSMKIR
HI
UMI
LMI
External Other private Household OOPPublic Social insurance contributions Voluntary prepayment
0(%) 10 20 30 40 50 60 70 80 90 100
Fig. 3Current health expenditure in select Asian
countries by health expenditure source, 2015
Fig. 4Current health expenditure in Pacific island
countries by health expenditure source, 2015
LMI: lower-middle-income; UMI: upper-middle-income; HI: high-income; “Public” refers to domestic public revenues; “External” refers to transfers from foreign origin; “Other private” refers to other domestic revenues from corporations or non-profits; OOP: out-of-pocket payment. Note: From the OECD countries: Australia, New Zealand and Japan have been incorporated using their latest estimates. 2014 estimates for Australia and Japan and 2013 estimates for New Zealand.
Source: WHO Global Health Expenditure Database (accessed 6 February 2018). World Bank income classifications (accessed 13 June 2018).
6
Gavi has disbursed US$ 373.8 million in the Region since 2001. A total of 67% of the invest-
ments was for vaccine support, while 33% was for non-vaccine support, which included health
systems strengthening (10). Four countries in the Region have entered the five-year acceler-
ated transition phase – the Lao People’s Democratic Republic, Papua New Guinea, Solomon
Islands and Viet Nam – and are expected to increase co-financing commitments for vaccines
to eventually fully finance them by the end of the fifth year. Funding from PEPFAR has also
supported a majority of treatment costs for people living with HIV, as well as prevention and
community support systems. PEPFAR spent over US$ 250 million in select Asian countries3 in
the Region from 2012 to 2015; 71% of its spending was channelled to HIV/AIDS programmes,
while 29% was spent on health systems strengthening (11).
Several countries in the Region that receive funding from global health initiatives are in the
process of transition or have already transitioned. While the meaning of transition and how
it is implemented may vary across global health initiatives, early planning and graduated
co-financing commitments that are embedded in the programme design are at the core of
transition and sustainability policies. Both the Global Fund and Gavi have clear eligibility and
transition policies that outline predictable timelines and triggers for a transition. Gavi’s trig-
ger for a transition is economic development classified by gross national income (GNI) per
capita, while the Global Fund’s support is reduced in accordance with both country income
classification and the reduction of disease burden indicators for HIV, TB and malaria. During
the transition, global health initiatives will require countries to co-finance and at an increasing
share as countries are further along the transition stage. For example, the portion of domestic
financing of HIV programmes ranges widely across countries in Asia, which are at different
stages in the transition (Fig. 5).
Most upper-middle-income countries fund the bulk of their HIV programmes domestically, with
some countries such as China and Malaysia fully or nearly fully self-financed, while lower-mid-
dle-income countries are gradually mobilizing more funds from domestic sources. HIV expen-
diture estimates in selected countries over time show this gradual transition of health financing
towards more domestic resources, while still heavily dependent on external funding (Fig. 6).
3 PEPFAR has investments in Cambodia, Papua New Guinea and Viet Nam, and also channelled funding
for HIV/AIDS and health systems strengthening through its Asia Regional Program, covering China, the
Lao People’s Democratic Republic and Thailand.
HEALTH FINANCING REGIONAL PROFILE 7
Fig. 5Proportion of domestic financing of HIV programmes
in selected Asian countries, latest available year
MYS (2013)
CHN (2012)
THA (2011)
FJI (2013)
LKA (2010)IDN (2012)
PHL (2013)
PAK (2013)
VNM (2012)
MNG (2011)
PNG (2012)
BGD (2013)KHM (2012)
IND (2011/12)MMR (2011)
LAO (2011)
AFG (2013)
TLS (2009)NPL (2009)
HI
UMI
LMI
0(%) 20 40 60 80 100
HI: high-income; LMI: lower-middle-income; UMI: upper-middle-income.
Source: Investing for results: how Asia Pacific countries caninvest for ending AIDS, 2015 (AIDS Data Hub)
8
Fig. 6HIV expenditure by financing source over time
in selected countries in the Western Pacific Region(in million US$), 2006–2015 (or latest available data)
Source: UNAIDs data (accessed December 2017)
China
200620072008200920102011201220132014
2006
2007
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012
2013
2014
FijiCambodia
Lao People's Democratic Republic Viet Nam
2006
2007
2008
2009
2010
2011
2006
2007
2008
2009
2010
2011
2012
2008
2009
2010
2011
2012
2013
2014
Malaysia
0200400600800
10001200
010203040506070
0
3
6
9
12
15
0
30
60
90
120
150
0.00.51.01.52.02.53.0
010203040506070
Domestic public International Domestic private
HEALTH FINANCING REGIONAL PROFILE 9
Fig. 7TB health budget by funding source
in selected countries in the Western Pacific Region (in million US$), 2006–2014
Source: Tuberculosis country profiles (WHO, 2017).
Domestic
Global Funds
United States Agencyfor International Development
Grants
0
2
4
6
8
10
0
2
4
6
8
10
Mongolia
Philippines
20062006
2007
2008
2009
2010
2011
2012
2013
2014
2007
2008
2009
2010
2011
2012
2013
2014
2006
2006
2007
2008
2009
2010
2011
2012
2013
2014
2007
2008
2009
2010
2011
2012
2013
2014
Cambodia
0
5
10
15
20
02468
1012
Papua New GuineaLao People's Democratic Republic
0.0
1.0
2.0
3.0
5.0
4.0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
5
10
15
20
25Viet Nam
China
0
100
200
300
400
2006
2007
2008
2009
2010
2011
2012
2013
2014
10
0(%) 5 10 15 20 25 30 35 40
Programme management
TB care and prevention
First-line anti-TB drugs
HSS: Health informationsystems and M&E
MDR-TB
Community systemsstrengthening
HSS: Procurement supplychain management
TB/HIV
Ministry of Health and Medical Services Global Fund
Fig. 8Proportion of TB expenditure by funding source
and programme area in Fiji, 2016/2017
HSS: health systems strengthening, M&E: monitoringand evaluation, MDR-TB: multidrug-resistant tuberculosis,
TB: tuberculosis, TB/HIV: tuberculosis and HIVcollaborative activities
Sources: National TB Programme of Fiji, 2017; WHO Fiji case study on the Tuberculosis and Immunization Programme
Transition to integrated financing, 2017.
HEALTH FINANCING REGIONAL PROFILE 11
Similar trends are also seen with TB funding in selected countries in the Region where
the different stages of transition are reflected and there is increasing co-financing from
domestic sources as in countries moving from lower-middle- to upper-middle-income
status (Fig. 7). Some countries are increasing domestic financing of their health budgets
for TB, although the Global Fund still comprises a significant part of the health budget and
the budget itself can vary over time. Other grants, including bilateral support, have been
supporting several countries in the Region. In several countries, local governments also
help finance costs of priority public health services.
While Figs 6 and 7 show how some countries have gradually increased their domestic
financing for HIV and TB programmes over time at different rates depending on their
stage of transition, further details on countries’ expenditures reveal how the external and
domestic funds and their distributions have contributed across programme areas. As an
example, the proportion of TB expenditure by funding sources and programme areas in
Fiji and Mongolia show external funds for several areas, such as programme management,
patient support, TB care and prevention, multidrug-resistant TB (MDR-TB), diagnosis,
community systems strengthening, monitoring and evaluation, and TB/HIV (Figs 8 and 9).
Domestic funding typically first covers staff and other human resource costs, including
programme management and supervision, and first-line drugs. Financing for MDR-TB is
still heavily financed through external funding for countries that are transitioning.
Certain programme areas may be more vulnerable than others to the withdrawal of external
funding during the transition phase. External funding can contribute towards several
areas of support, including prevention and HIV testing, care and treatment, and systems
strengthening and programme coordination.
The challenges lie in how to gradually integrate and finance the programme areas that
are all interlinked and rely on each other to provide a continuum of care for priority public
health services, such as treating HIV and TB.
12
Fig. 9Proportion of TB expenditure by funding source
and programme area in Mongolia, 2013-2014
ACSM: advocacy, communication and social mobilization; FLD: first-line drug; HRD: human resource development; IPC: infection prevention and control; M&E: monitoring and evaluation; MDR-TB: multidrug-
resistant tuberculosis; OR: operational research; PPM: public–private mixed approach; TB: tuberculosis; TB/HIV: tuberculosis and HIV collaborative activities.
Sources: National TB spending assessment report 2013–2014, Mongolia; WHO sustainable financing of the priority public health programmes in Mongolia 2018: a case study on HIV and TB programmes (in press).
0(%) 10 20 30 40 50
HRD and staff 41.7%
Patient support 13.1%Management
and supervision 11.8%
MDR-TB 6.4%
5.5%
4.7%
3.5%
3.2%
2.3%
2.1%
1.9%
1.3%
0.8%
0.7%
0.6%
0.3%
Diagnosis
OR
IPC
FLD
Trainings
Public participation
PPM
Pediatric TB
M&E
High risk group
ACSM
TB/HIV
Domestic public International Domestic private
Similar to the TB programme, for HIV, countries have a distribution of external and domestic
funding across different programme areas. For example, in Malaysia, the majority of external
funds were spent on care and treatment, while, in Mongolia, prevention and HIV testing
was the main area of external support. In Viet Nam, the majority of external funds are spent
on prevention and HIV testing, and care and treatment (12).
HEALTH FINANCING REGIONAL PROFILE 13
14
HEALTH FINANCING REGIONAL PROFILE 15
Fig. 10Whole-of-system approach to essential
public health functions
Amount of funding, resource allocation and payment methods
Funding agents and flow
Funding sources
Governanceand
stewardship
Legislation
Regulations
National health
strategy
Organizational
structures
Coordination
Monitoring and
evaluation
Essential public health
functions
Ministry of Health
Disease control agencies
Laboratories
Health-care facilities
Procurement agencies
Communities and civil society organizations
Surveillance, health promotion and protection, disease prevention and management, emergency response
Core programme elements
Human resources, health information, research, social participation and health communication
Institutions
Source: WHO Regional Office for the Western Pacific
Financing
16
Transitioning to integrated financing and service delivery
Health systems need to respond to the increasing
pressures on health expenditures for priority public
health services and changing health needs. While
strengthening health financing is fundamental,
taking a whole-of-system approach for sustainable
and resilient systems is needed to deliver the best
health outcomes (Fig. 10). Essential public health
functions entail surveillance, health protection and
promotion, disease prevention and management, and
emergency response (13) – the interlinkages between
financing, governance and role of institutions in
discharging essential public health functions enable
the protection of health. Securing essential public
health functions is pressing for countries undergoing
service delivery and budgeting reforms, in particular
for certain countries confronting reductions in external
funding – including from global health initiatives – for
disease control programmes.
While global health initiatives have brought about
massive immediate cash and in-kind support to
countries, they have also enlarged core programme
elements and fragmented systems that support
essential public health functions.
To transition from a vertically funded to a whole-of-
system approach, countries can develop a phased
transition plan, which includes a four-part analytical
approach (Annex 1). This requires changing the way
of work and enables countries to do more with
available resources and achieve efficiencies at the
health system level in addition to mobilizing domestic
resources. Given that each donor may have its own
transition plan and systems, partners and govern-
ments are to coordinate and collaborate to smooth
the overall transition in countries. Government lead-
ership is critical to establishing the vision for health
sector development, ensuring active participation of
stakeholders, sustaining health gains and driving the
entire transition process.
HEALTH FINANCING REGIONAL PROFILE 17
ELEMENTS DESCRIPTION
Policy, guidelines, stewardship and regulations
Government has fundamental stewardship and regulatory functions, including setting national policies and strategies, developing guidelines, preparing annual work plans and budgets, and overseeing programme implementation, including monitoring, evaluation and supervision.
Prevention
Includes individual-based interventions (e.g. counselling; risk mitigation) and population-based interventions (e.g. immunization; promotion of prevention commodities; environmental control, including vector control; and health promotion and communication).
Surveillance
Continuous process of collecting information through notification, validation and registration of cases, and assessing the burden, trends and distribution of diseases and risk factors.
Evaluating effectiveness, accessibility, coverage and quality of individual- and population-based health services.
Monitoring and investigating unusual occurrences of health events, including disease outbreaks.
Outbreaks and emergency response
Response to disease outbreaks, disasters and emergencies.
Capacity to act on health-related issues and events that are identified by monitoring and evaluation activities, including routine surveillance systems.
Diagnosis, treatment and care (clinical services)
Quality clinical services such as diagnosis, treatment and care are a fundamental element of many public health programmes such as TB, malaria, sexually transmitted infections, HIV and NCD programmes.
Laboratory (clinical and reference laboratories)
Any public health programme requires quality-assured laboratory capacity for both diagnosis and surveillance purposes.
Requires a tiered laboratory network at various levels such as reference laboratory, secondary (referral) laboratory, district laboratory and point-of-care facilities. Small-country contexts may have regional reference or referral laboratories.
Procurement and supply management systems
Process of selecting, quantifying, purchasing and distributing quality-assured medical products that are essential for public health programmes.
Community-based support and social participation
Community-based support is critical to many public health programmes such as community patient support for TB, peer education programmes, self-help groups and social mobilization for outreach activities.
Targeted approaches for vulnerable and high-risk populations
Specific strategies and approaches are often needed to address the needsof vulnerable populations.
With decreasing incidence among general populations, some diseases are highly concentrated among high-risk populations
Table 1Core programme elements
Source: Regional framework for action on transitioning to integrated financing of priority public health services in the Western Pacific,
Table 1 (2018).
18
Strengthening service delivery across core programme elements
Critical to the process of transition are the mapping and analysis of core programme
elements that are included in national public health programmes and part of essential
public health functions and other health system functions (Table 1). While global health
initiatives have supported the development of the core programme elements and
disease-specific systems, further strengthening of these elements and their linkages
should contribute towards securing essential public health functions and improving the
sustainability and resilience of the health system. Some of the main challenges are how
to move towards more sustainable and integrated systems, given the large fractures
brought about by vertically funded disease control programmes, and to encourage staff
to more closely link across the core programme elements to provide more integrated and
coordinated care.
For each of the core programme elements, it is important to understand how they are
organized, financed and implemented or delivered to explore options on how to reduce
fragmentation, integrate into the general health system or better harmonize across the
system, and improve efficiency and coordination (Table 2). This includes how the core
programme elements are linked together to provide a continuum of care. Surveillance,
laboratory, procurement and supply management systems, and a community-based
approach are some of the elements that may gain efficiencies in integration. However, not
all core programme elements are necessarily expected to be integrated as some may still
need to fulfil specialized technical requirements. For example, in Viet Nam, the flow of funds
and procurement of medicines and vaccines can be complex and fragmented among the
various donors (Annex Fig. A1); however, efforts are being made to move towards a more
harmonized procurement and supply management system.
HEALTH FINANCING REGIONAL PROFILE 19
Table 2Current organization of core programme elements
and future directions
Source: Regional framework for action on transitioning to integrated financing of priority public health services in the Western Pacific,
Table 2 (2018).
PROGRAMME ELEMENT
CURRENT ORGANIZATION FUTURE DIRECTIONS
Policy, guidelines, stewardship and regulations
National public health programmes in collaboration with specialized institutions.
Retain policy and stewardship functions under ministries of health.
Prevention
Largely through primary health care network, often with significant input from specific programmes and funding.
Mostly retained under public responsibility with ongoing collaboration with civil society organizations.
Civil society organizations may play a significant role in health promotion, service delivery and communications.
Some can be shifted to health insurance or other funding sources.
SurveillanceParallel reporting procedures created substantial burden, especially at the peripheral levels.
Integrated systems, including disease notification systems, and national health management information systems.
Outbreaks and emergency response
Often organized by specific programmes, and not linked with general surveillance and response capacity of the country.
Strengthened linkages between general surveillance and response systems and disease control programmes.
Build response capacity along with declining disease incidence.
Diagnosis, treatment and care (clinical services)
Largely through the primary health care network. Task-shifting in some settings that may be associated with integration of clinical care under health insurance schemes.
Ensure quality of care especially where the role of general clinical facilities, including private sector, is expanded.
During the transition, it is critical to monitor service uptake and coverage, as well as financial burden to patients.
Laboratory (clinical and reference laboratories)
Often vertically organized under each health programme. Often separated from the general public health laboratory network.
Integrated public health laboratory networks using existing infrastructure and human resources. Investment made by specific programmes to be fully utilized (bio safety, molecular diagnostic platforms, etc.).
Procurement and supply management systems
Programme-specific supply management systems due to programmatic necessities and requirements for accountability by donors.
Programme-specific parallel systems gradually merged. Programmatic expertise critical for product selection, sound quantification and harmonization with national protocols.
Central procurement may be continued for efficient procurement practices.
Community-based support and social participation
Critical to many public health programmes such as treatment support for TB patients, HIV prevention and testing, and peer support programmes.
Explore options to maintain services provided by civil society organizations that are currently funded by external donors.
May require different contractual modalities or merging into the government sector function.
Targeted approaches for vulnerable and high-risk populations
Often needed but under the purview of specific disease programmes with the engagement of community-based organizations.
Continue with strategies to effectively address the needs of vulnerable and high risk populations with active engagement of civil society organizations.
20
Making better use of resources
Strengthening financing institutions to improve system-wide efficiency involves both allocative
and technical efficiency efforts and changing the way of work. Key considerations include
prioritizing and ensuring sufficient public funding for core programme elements, aligning
different funding sources and funding flows, and determining the role of health insurance in
mixed health financing systems.
Having a transparent, evidence-informed and participatory process for decision-making is
important in prioritization of interventions and how this is translated into the health budget.
This is also critical in holding decision-makers and health managers accountable for how
funds are spent. Ensuring that vulnerable and high risk populations have access to health
services needs to be considered in the prioritization process. Further, the funding gap should
not be equated to exactly replacing the external funding amount that will be reduced.
Some of the more difficult actions countries consider are with managing and absorbing
the programme staff within the general health system, how to strengthen and utilize
the public financial management system, and how to align incentives for providers to
improve equitable access to quality services. In particular, one of the major challenges
countries face is having flexibility in the public financial management system to contract
nongovernmental organizations, which play a vital role in core programme elements, such
as prevention and community outreach. In addition, several countries channel or are in the
process of channelling their external funding through the government system to better align
priorities, coordinate funding and make use of resources (Fig. 11). Transfers distributed by
the government from foreign origin are channelled through the government, while direct
foreign transfers are those funds that are directly received by the health financing schemes.
As countries transition towards integrated financing or increased domestic financing,
channelling external funding through the government system can reduce fragmentation
across various sources, improve monitoring of how external funds are used and encourage
strengthening of accountability mechanisms within the system.
HEALTH FINANCING REGIONAL PROFILE 21
Transfers distributed by government Direct foreign transfers
0(%) 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
PLW
NIUTONNRUMHL
WSMFJI
MYS
FSMSLBPNGKHMLAOVUT
MNGVNMPHL
UMI
LMI
HI
LMI: lower-middle-income; UMI: upper-middle-income; HI: high-income.Note: Only those countries with external funding are included
Source: WHO Global Health Expenditure Database (accessed 6 February 2018). World Bank income classifications (accessed 13 June 2018)
Fig. 11External funding as a share of current
health expenditure, 2015
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22(%)
Pacific
Asia
MHLPLWTUVVUT
WSMSLBPNGTON
FJIKIR
FSMNRUCOKNIU
KORSGPCHNMYSVNMPHLBRNKHMMNGLAO
Fig. 12Government health expenditure as a share
of total government expenditure, 2015
Source: WHO Global Health Expenditure Database (accessed 6 February 2018).
22
During the transition, several countries with mixed health financing systems are also determin-
ing the role of health insurance and potential ways in which the health financing mechanism can
be used to cover the cost of some core programme elements. Health insurance may be another
way to raise funds for health, but it may not necessarily result in more total funding than through
other mechanisms. Government subsidies may also be needed to sustain the health insurance
system. Individual-based clinical services can be covered by health insurance, while this would
not be suitable for population-based services or functions. Individual-based prevention may
depend on the existing insurance function. Some of the key concerns of the transition with
health insurance entail ensuring a continuum of care and no disruptions in the treatment course
given what may or may not be covered in the benefit package. In middle-income countries
with growing health insurance systems, not all of the population is covered and vulnerable
and high risk populations may require special arrangements and subsidies to avail of services.
Other aspects of providing services paid through a health insurance system may be themselves
complicated given that members register with personal information and social stigma may
prevent people from accessing the care they need, in particular for TB and HIV.
Increasing domestic financing for public health.
In the Region, Asian countries have experienced steady economic growth, while in the
Pacific island countries, growth has been limited. Countries that do have favourable fiscal
contexts may not necessarily have increasing budgets for health. There is a wide range in
the government expenditure on health as a share of overall government spending in Asian
and Pacific island countries (Fig. 12). Over the past decade, countries have made efforts to
increase domestic spending for health in their health sector reforms and are strengthening
the engagement and trust between ministries of health and finance. Ministries of health are
often faced with questions regarding how effectively they spend their funds, what evidence
they have and what they are doing to improve efficiency. Also, having a clear and realistic
health sector plan with performance indicators and costing and budgetary implications is
important to evaluating how public funds are used to achieve health policy goals.
Regarding earmarking funds, this is often a political decision rather than purely a financial one.
There are advantages and disadvantages to earmarking, the flexibility of which depends on
the country’s public financial management system (14). Some countries in the Region have
earmarked funds for health, such as the Philippines (Annex Fig. A2), where a percentage of
tobacco and alcohol taxes and gambling revenues are used to subsidize health insurance
coverage for poor populations and assist needy patients for inpatient care.
Furthermore, collaboration with various partners, such as other government sectors and non-state
actors has supported health promotion and objectives in several countries in the Region. Improving
cooperation and coherence across government sectors for public health and health promotion
will be instrumental in meeting public health standards and supporting a country’s efforts towards
universal health coverage (UHC) and achievement of the Sustainable Development Goals (SDGs).
Social protection policies that have been put in place can include subsidies to patients to enrol
in social protection mechanisms and to provide patient support. For example, the Fiji National
Tuberculosis Programme negotiated with the Ministry of Women, Children and Poverty Alleviation
for preferential inclusion of needy or vulnerable TB patients in a social protection scheme with the
provision of food vouchers and a monthly stipend for the duration of treatment (15). While funding
channels directly from the Ministry of Women, Children and Poverty Alleviation to patients, the
Ministry of iTaukei Affairs also supports non-state actors that contribute to health (Annex Fig. A3).
HEALTH FINANCING REGIONAL PROFILE 23
24
Summary
Given the changing population needs and fiscal
pressures, many countries in the Region are
undergoing transitions towards more integrated
service delivery and financing for priority public
health services. Health financing serves as a trigger
to broader service delivery and health sector reform.
The transition process itself may last a long period
of time and may be country-specific with various
opportunities and risks. Political commitment and
long-term vision are needed from the government to
smooth the transition.
Governing the transition process is important
towards ensuring a well-planned and implemented
phase-wise approach. This also entails having a
transparent and participatory process throughout to
build consensus and coordinate among the several
partners. Having an oversight mechanism and being
able to routinely monitor and evaluate progress of
the transition to be able to adjust where needed in a
timely manner are essential.
One of the major challenges in the transition
will be managing the change in the way of work
and workforce involved. Having the support and
commitment of the workforce – particularly those
from disease control programmes – early on in the
transition is fundamental to mitigating potential staff
demotivation and attrition. Another major challenge
in the transition will be reconstructing the public
health system from a fractured, distorted system
using a whole-of-system approach. Doing so will also
translate to investing not just in human resources, but
in the core programme elements and their linkages
across one another, such as laboratories, treating
MDR-TB, outreach and preventive activities, to be
able to provide a continuum of care that is affordable.
HEALTH FINANCING REGIONAL PROFILE 25
26
1. Regional framework for action on transitioning to integrated financing of priority public health
services in the Western Pacific. Manila: WHO Regional Office for the Western Pacific; 2018.
2. Universal health coverage: moving towards better health – action framework for the
Western Pacific Region. Manila: WHO Regional Office for the Western Pacific; 2016
http://iris.wpro.who.int/bitstream/handle/10665.1/13371/9789290617563_eng.pdf
3. Regional action agenda on achieving the Sustainable Development Goals in the Western
Pacific. Manila: WHO Regional Office for the Western Pacific; 2017
http://iris.wpro.who.int/bitstream/handle/10665.1/13553/9789290617891-eng.pdf
4. Global tuberculosis report 2017. Geneva: World Health Organization; 2017
http://www.who.int/tb/publications/global_report/en/
5. HIV data and statistics [website]. Manila: WHO Regional Office for the Western Pacific; 2016
www.wpro.who.int/hiv/data/en/
6. Regional action framework for malaria control and elimination in the Western Pacific:
2016–2020. Manila: WHO Regional Office for the Western Pacific; 2017 (http://iris.wpro.who.
int/bitstream/handle/10665.1/13578/9789290618157-eng.pdf
7. Regional framework for implementation of the Global Vaccine Action Plan in the Western
Pacific. Manila: WHO Regional Office for the Western Pacific; 2015
http://iris.wpro.who.int/bitstream/handle/10665.1/10921/9789290617099_eng.pdf
8. Health topics: noncommunicable diseases [website]. Manila: WHO Regional Office for the
Western Pacific; 2018
www.wpro.who.int/topics/noncommunicable_diseases/en/
9. Warren AE, Wyss K, Shakarishvili G, Atun R, de Savigny D. Global health initiative
investments and health systems strengthening: a content analysis of Global Fund
investments. Global Health. 2013;9(1):30. doi: 10.1186/1744-8603-9-30.
10. Country hub [fact sheets]. Geneva: Gavi, the Vaccine Alliance; 2018
www.gavi.org/country/
11. Country and regional program results, FY 2015 [online database]. Washington, (DC):
PEFPAR; 2018
https://data.pepfar.net/country/impact?country=Global&year=2015
12. HIV financing status in selected countries of the Western Pacific Region (2009–2015).
Manila: WHO Regional Office for the Western Pacific; 2016.
http://iris.wpro.who.int/bitstream/handle/10665.1/13520/WPR-2016-DCD-002-eng.pdf
13. Essential public health functions, health systems and health security: developing
conceptual clarity and a WHO roadmap for action. Geneva: World Health Organization; 2018.
14. Cashin C, Sparkes S, Bloom D. Earmarking for health: from theory to practice. Health
Financing Working Paper No. 5. Geneva: World Health Organization; 2017
http://apps.who.int/iris/bitstream/10665/255004/1/9789241512206-eng.pdf
15. Regional framework for action on implementation of the End TB Strategy in the Western
Pacific, 2016–2020. Manila: WHO Regional Office for the Western Pacific; 2016
http://iris.wpro.who.int/bitstream/handle/10665.1/13131/9789290617556_eng.pdf
References
HEALTH FINANCING REGIONAL PROFILE 27
The purpose of this annex is to support countries in sustaining the progress made by priority
public health programmes within the health system context through the development of
a phased transition plan. This includes a four-part analytical approach which consist of:
(1) identifying options for integration and coordination by understanding the health
system and its context; (2) setting up of up-to-date, clearly defined essential public
health functions and the mapping of core programme elements within programmes and
their prioritization; (3) mapping of core programme elements and commonalities across
programmes and the rest of the health system including options for integration and
coordination; (4) development of a phased and systematic transition plan that is situation-
specific and responsive to a number of factors during the process to ensure long-term
sustainability. The analytical approach will guide the examination of priority public health
programmes from a health systems perspective, applying the principles of improving
quality of services, equity and efficiency.
1. Health system architecture and context • Brief overview of the health system architecture (governance, financing mechanisms,
institutions involved, essential public health functions and core programme elements)
and the overall governance and stewardship (legislation, regulations, national health
strategy, organizational structures, coordination, monitoring and evaluation), which
significantly influence the functioning of the health system.
2. Within-programme mapping and prioritization
• Mapping of core programme elements by financing mechanisms and service providers
within a specific programme
• Funding and other gap analyses
• Prioritization of interventions within each programme
3. Across-programme mapping and options for coordination and integration
• Mapping of core programme elements and commonalities across programmes and
the rest of the health system
• Options for coordination and integration
4. Phased and systematic transition plan • Assessment of the options for coordination and integration, including feasibility,
enabling factors, and associated benefits and risks
• Identification of entry points and sequence of actions
• Development of road map, including division of labour and key milestones
within a time frame
• Monitoring and evaluation of progress
AnnexAnnex 1: Analytical approach
28
1. Health system architecture and context
HEALTH STATUS AND HEALTH SYSTEM CONTEXT
• What are the major health issues that the country is facing, including major causes of
mortality and morbidity?
• What are the characteristics of the current political and economic environment?
• Which ongoing public sector reforms are relevant to the health system?
GOVERNANCE
• What important legislations and regulations are in place that shape the whole
health system? How does the national health strategy align with the overall country
development plan(s)?
• Which government agencies are important to the health system (health sector
agencies as well as central agencies and other bodies)? What are their functions and
their authority?
• How can the country’s health system be described – including the roles of the public
and private sectors and available information on current performance?
• What is the level and distribution of resources, including infrastructure, human
resources, equipment, essential medicines and technologies?
• What is the process for national health planning (annual planning and budgeting and
long-term planning) and which stakeholders are involved?
• What is the current capacity – including managerial – of the government to strengthen
the health system? What are the roles of the private sector and civil society?
• What donor activity is present and planned within the health system and how is it
coordinated?
• How is information on health system performance generated and used?
Guiding questions
HEALTH FINANCING REGIONAL PROFILE 29
FINANCING
• What are the past, current and forecast levels of expenditure on health by the
government? How much is the general health budget and what is it allocated towards?
• Is there earmarked funding for programmes (and what are the sources)? Are there any
plans for more earmarked revenues for health?
• Is there any leveraging of resources from and for non-state actors for health?
• What is the level of external funding provided and what is it used for (e.g. budget
support)?
CORE PROGRAMME ELEMENTS AND ESSENTIAL PUBLIC HEALTH FUNCTIONS
• What are the core programme elements in different priority public health programmes
and how are they aligned with the essential public health functions?
• How are the core programme elements delivered in the health system? Which
providers are involved in delivering them?
• How are services regulated? How is quality managed at the population and individual
levels and within health facilities and by whom?
• What are the arrangements and logistics for procurement of supplies? How is
procurement regulated? How is compliance ensured?
• Is there any community-based support and social participation within priority public
health programmes?
• What strategies and approaches are taken to target vulnerable and high-risk
populations?
2. Within-programme mapping and prioritization
HEALTH STATUS
• What is the prevalence of the disease and its incidence rate? What is the target
population? What is the burden of disease (including geographical, epidemiological
risk and evolution, most at-risk population groups, etc.)?
• What is the programme strategy and relevant evidence base?
30
ESSENTIAL FUNCTIONS AND SERVICES
• What are the core programme elements for the particular programme?
• Which providers are involved in delivering the various functions and services and how
are they funded?
GOVERNANCE
• What are the legal and regulatory frameworks relevant for the programme?
• What are the institutional arrangements for the programme? How are decisions made
and who is involved in the decision-making process?
• What are the responsibilities at the different levels of government and institutions for
implementing the programme?
• What is the prioritization process for interventions in the programme? Which
interventions are prioritized and which populations are affected?
• What are the management structure and mechanisms for the programme?
• How are donors currently involved in the programme? What is the forecast in relation
to future donor involvement?
• Who is responsible for creating and enforcing the technical guidelines and standards for
the programme? What are these and who will manage the training in these guidelines?
• What monitoring and evaluation mechanisms are used for the programme?
FINANCING
• How much funding goes towards which functions and from which sources? (Sources
include government – excluding social protection schemes; external – bilateral,
multilateral, global health initiatives, etc.; social protection schemes; private insurance;
and out-of-pocket payments.)
• How do funds flow across the levels of the health system, between central
government and local governments, including for donor funding? How is donor
funding used?
• What financing mechanisms are in place for providers and patients?
• What are the requirements for reporting on financial management and performance of
the programme? Who determines these requirements and how well are they currently
being met?
• How much funding is forecast for the programme?
HEALTH FINANCING REGIONAL PROFILE 31
3. Across-programme mapping and options for coordination and integration
MAPPING ACROSS PROGRAMMES
• Are there common core programme elements that can be better coordinated or
integrated to improve efficiencies? Are there functions that need to remain vertical?
How can these functions be distributed or merged among the different levels of
service delivery networks within the continuum of health care (primary, secondary and
tertiary care) and among stakeholders, including private and civil society groups?
• Are there governance arrangements or financing mechanisms across programmes
that can be better coordinated or integrated to improve efficiencies?
• What are the potential options and their associated benefits and risks? What
conditions are needed for implementation? How do they align with other reforms?
• What implications would changes have for the mainstream health system and the
vertical programme(s)?
OPTIONS FOR COORDINATION AND INTEGRATION – CORE PROGRAMME ELEMENTS
• What interventions are high-impact, evidence-based and aligned with the country’s
burden of disease? What aspects should be prioritized in accordance with the
country’s principles and national health priorities?
• How will the system continue to provide affordable, quality health services to target
populations?
OPTIONS FOR COORDINATION AND INTEGRATION – GOVERNANCE ARRANGEMENTS
AND FINANCING MECHANISMS
• Given the funding gap, how can domestic funding be increased and efficiency
improved? What is the capacity of the government to increase domestic funding?
What types of domestic funding options can be used to mobilize more funding?
• How can the different funding sources and funding flows be aligned? How will
programme staff be absorbed into the general health system?
• How can public financial management (PFM) systems and payment mechanisms
be strengthened? How can flexibility be built into the PFM systems for contracting
nongovernmental organizations? Can external funding be channelled through the
PFM system?
32
HOW CAN THE COVERAGE OF TARGET POPULATION GROUPS BY THE DIFFERENT
FUNDING MECHANISMS BE COORDINATED OR STREAMLINED?
• How are incentives aligned for the appropriate provision and use of health services?
Specifically, how are the provider-payment mechanisms aligned with the incentives
and services to be delivered?
• What services and functions can be potentially covered by health insurance
(if applicable)? How will the different funding mechanisms be coordinated and
integrated with health insurance? How can effective coverage of appropriate benefit
packages for priority populations be ensured? Can government funding subsidize
health insurance for programme-related services?
• What governance arrangements can enable the transition and which stakeholders
are involved?
4. Phased transition plan
ENTRY POINTS
• What entry points can be helpful in achieving coordination and integration? Which of
the different authorities is responsible for doing what? How can the entry points be
aligned with current reforms?
• What are some of the benefits and risks associated with the merging of certain
functions? What can be done to minimize those risks?
• Who are the different stakeholders and what are they responsible for in the
implementation phase?
• What are the different scenarios that can be envisaged based on funding conditions
and/or enabling environment?
HEALTH FINANCING REGIONAL PROFILE 33
ENABLING FACTORS
• How willing are donors to make long-term plans to slowly reduce funding?
What can be done by the government to negotiate a predictable and gradual shift
(or withdrawal) of funding?
• What types of institutional change(s) are needed for integration to happen – including
social rules and norms on how the health system functions and is governed?
• What are the implications of the proposed changes for planning, monitoring and
evaluation, and how can these be coordinated? How might the different national
programme plans be aligned with each other and with the national plan?
• What processes are in place to build a consensus on a plan to move forward?
Who needs to be involved?
• What are the enabling factors that may affect the change?
ROAD MAP AND MILESTONES
• What are the key milestones that measure progress and what is their timeline within
the road map?
• What monitoring and evaluation framework will be used to track performance of
implementation?
34
HEALTH FINANCING REGIONAL PROFILE 35
Pro
cure
me
nt
Ag
en
t ProcurementAgent
CPC-1 CPC-1 NationalLung
Hospital
3 RegionalHospitals
Same dispensingpoints for ARVs
ARV
ARV
Methadone
Methadone
TB Drugs Dispensing Level
Vaccines
Vaccines
Vaccines
Vaccines
PrincipalRecipient (PR)
GovernmentSub-Recipient
(SR)
Storage
PrimaryStores
RegionalStores
ProvincialStores
DistrictStores
Provincial HealthDepartment (PHD)
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Viet Nam Authorityof HIV/AIDS Control
(VAAC) for HIV
National LungHospital for TB
National Instituteof Malariology,
Parasitology andEntomology (NIMPE)
Department ofPlanning & Finance
(DPF) for HealthSystems
Strengthening (HSS)
National Institute forHygiene and
Epidemiology
Provincial AIDSCommittee (PAC)
District HealthCentres (DHCs)
Commune HealthStations (CHS)
Outpatient Clinics(OPC)
MethadoneTreatment Centres
IntercommunePolyclinic
TB TreatmentCentres
MethadoneTreatment Centres
PPM IDA/GLCUNICEFSupplyDivision
Ministry ofHealth (MOH)
Separate CentralProject Management
Units (CPMUs) foreach disease and HSS
Gavi, WHOand UNICEF
Global Fund PEFPAR USAID
Separate ProvincialProject Management
Units (PPMUs) foreach disease and HSS
Civil Society, NGOs,Subrecipients,Foundations,
ImplementingPartners, Non-state
Actors
PPM = Pooled procurement mechanism
IDA/GLC = International DispensaryAssociation/Green Light Comittee
CPC-1 = Central Pharmaceutical Company 1
OPV = Oral Polio Vaccine
ARV = Antiretroviral therapy
External donor partners flow
Direct donor support
Global Fund HIV/AIDS
PEFPAR HIV/AIDS
Gavi procurement/distribution
Global Fund TB
Coordination lines b/n CPMU and PPMU
Sto
rag
eD
isp
en
sin
g P
oin
ts /
Le
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ImplementingPartners
First line ARV,methadone
First, second,pediatric
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2nd lineDrugs,
IsoniazidPreventive
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Pentavalent andMeasles-Rubella
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OPV
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Legend:
Fig. A1Viet Nam Flow of Fund and Procured Drugs/
Vaccines for Donor-Assisted Programmes
Pro
cure
me
nt
Ag
en
t ProcurementAgent
CPC-1 CPC-1 NationalLung
Hospital
3 RegionalHospitals
Same dispensingpoints for ARVs
ARV
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Methadone
Methadone
TB Drugs Dispensing Level
Vaccines
Vaccines
Vaccines
Vaccines
PrincipalRecipient (PR)
GovernmentSub-Recipient
(SR)
Storage
PrimaryStores
RegionalStores
ProvincialStores
DistrictStores
Provincial HealthDepartment (PHD)
Provincial Hospital
Viet Nam Authorityof HIV/AIDS Control
(VAAC) for HIV
National LungHospital for TB
National Instituteof Malariology,
Parasitology andEntomology (NIMPE)
Department ofPlanning & Finance
(DPF) for HealthSystems
Strengthening (HSS)
National Institute forHygiene and
Epidemiology
Provincial AIDSCommittee (PAC)
District HealthCentres (DHCs)
Commune HealthStations (CHS)
Outpatient Clinics(OPC)
MethadoneTreatment Centres
IntercommunePolyclinic
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MethadoneTreatment Centres
PPM IDA/GLCUNICEFSupplyDivision
Ministry ofHealth (MOH)
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Units (CPMUs) foreach disease and HSS
Gavi, WHOand UNICEF
Global Fund PEFPAR USAID
Separate ProvincialProject Management
Units (PPMUs) foreach disease and HSS
Civil Society, NGOs,Subrecipients,Foundations,
ImplementingPartners, Non-state
Actors
PPM = Pooled procurement mechanism
IDA/GLC = International DispensaryAssociation/Green Light Comittee
CPC-1 = Central Pharmaceutical Company 1
OPV = Oral Polio Vaccine
ARV = Antiretroviral therapy
External donor partners flow
Direct donor support
Global Fund HIV/AIDS
PEFPAR HIV/AIDS
Gavi procurement/distribution
Global Fund TB
Coordination lines b/n CPMU and PPMU
Sto
rag
eD
isp
en
sin
g P
oin
ts /
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vels
ImplementingPartners
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First, second,pediatric
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2nd lineDrugs,
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OPV
Northern, CentralHighland,Southern regions
Legend:
Loans Grants and TA
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State Budget(i.e. operating budget)
InternalRevenue
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LGUBudget
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ACR
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Private Voluntary Health Insurance / Micro-health insurance
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External donor financing PCSO = Philippine Charity Sweepstakes OfficePAGCOR = Philippine Amusementand Gaming Corporation
TA = Technical AssistanceLGU = Local government unitDOTS = Directly-Observed Treatment, Short-course
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PCSO PAGCOR
Privatevoluntary
healthinsurance
Ruralmicro-health
insurance
People/employers
Patients
Reimbursements
Regionalhospitals
DOH-retainedhospitals
Externaldonor
partners
Ruralhealth units
Privatehospitals
Privatemedicalclinics
Pharmacies
Non-stateactors /
implementingpartners
Privateproviders
Barangayhealth
stations
Fig. A2The Philippines’s Health System Funding Flows
Loans Grants and TA
DOH Budget
State Budget(i.e. operating budget)
InternalRevenue
Allotment (IRA) LGUBudget
LGUBudget
Revenue-generatingservices Capitation
ACR
All Case Rates (ACR)
Grants
ACR
SubsidySome premium subsidy
LotteryRevenues
Inpatientmedical and
surgicalcases,
includingfacility-based
deliveries
Outpatientbenefit
packagesMaternal Care
TB DOTS (per case)
Patients alsospend for
out-of-pocketpayments to
informalproviders and
overseastreatments
Other sectors
Premium
Premiums
LocalTaxes
Taxes
StateBudget
General Government Budget FlowsLegend:
LGU Budget / Flows
PhilHealth / Social Health Insurance
Private Voluntary Health Insurance / Micro-health insurance
Flows from other sectors
Direct payments from fees and charges
External donor financing PCSO = Philippine Charity Sweepstakes OfficePAGCOR = Philippine Amusementand Gaming Corporation
TA = Technical AssistanceLGU = Local government unitDOTS = Directly-Observed Treatment, Short-course
Coordination
NationalBudget
Departmentof Budget andManagement
Departmentof Health
(DOH)
General governmentbudget flows
Direct payments for fees and charges
External donorfunding
Tertiary care
Secondary care
Secondary care
Primary care
Provincial HealthSystem
Flows from the gaming sector
Private voluntary health insurance flows
Social healthinsurance flows
Specialtyhospitals
Corporatespecialtyhospitals
RegionalOffices
Provincialhealth
offices /team
LGUProvince
Provincialhospitals
Districthospitals
LGUMunicipality
/ City
LGUBarangay
LocalGovernments
Departmentof Finance
PhilHealth
PCSO PAGCOR
Privatevoluntary
healthinsurance
Ruralmicro-health
insurance
People/employers
Patients
Reimbursements
Regionalhospitals
DOH-retainedhospitals
Externaldonor
partners
Ruralhealth units
Privatehospitals
Privatemedicalclinics
Pharmacies
Non-stateactors /
implementingpartners
Privateproviders
Barangayhealth
stations
Suppliers /vendors /
contractors
Capital spending plusother procurement flows
exceeding 50 000 FJD
Procurement of goodsand services
Taxes
Premiums
User chargesto servicedeliveryfacilities
Payments
Socialassistance topoor patients
Remuneration /allowances of
volunteer
Directsupport toNGOs or
implementingpartners
User chargespaid to
consolidatedfund account
Programme fundingtransfers / aid-in-kind
Agency budget
External donorfunding
Flows from other sectors
State budget flows
Direct paymentsfor fees and charges
Nationalbudget
Ministry ofEconomy
12 costcentres
Grant MgtUnit
Publichealth
facilities
Privatehealth
facilities andpharmacies
Non-stateactors(NGOs,CHWs)
ExternalDonor
Partners
Ministry ofi-TaukeiAffairs
Ministry ofWomen,
SocialWelfare and
PovertyAlleviation
Privatevoluntary
healthinsurance
People /Patients
Ministry ofHealth and
MedicalServices
Third-partyprocurement
agent
Programmefunding
transfers
Legend: CHW = Community health worker
NGO = Non governmental organization
Fig. A3Fiji’s Health System Funding Flows
Suppliers /vendors /
contractors
Capital spending plusother procurement flows
exceeding 50 000 FJD
Procurement of goodsand services
Taxes
Premiums
User chargesto servicedeliveryfacilities
Payments
Socialassistance topoor patients
Remuneration /allowances of
volunteer
Directsupport toNGOs or
implementingpartners
User chargespaid to
consolidatedfund account
Programme fundingtransfers / aid-in-kind
Agency budget
External donorfunding
Flows from other sectors
State budget flows
Direct paymentsfor fees and charges
Nationalbudget
Ministry ofEconomy
12 costcentres
Grant MgtUnit
Publichealth
facilities
Privatehealth
facilities andpharmacies
Non-stateactors(NGOs,CHWs)
ExternalDonor
Partners
Ministry ofi-TaukeiAffairs
Ministry ofWomen,
SocialWelfare and
PovertyAlleviation
Privatevoluntary
healthinsurance
People /Patients
Ministry ofHealth and
MedicalServices
Third-partyprocurement
agent
Programmefunding
transfers
Legend: CHW = Community health worker
NGO = Non governmental organization
RegionPacificWesternOrganizationWorld Health