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National Health Account Estimates

Posted 14 Nov 2024

Updated 16 Nov 2024

3 min read

Why in the news?

Recently, Union Ministry of Health and Family Welfare (MoHFW) released the National Health Account (NHA) estimates for the fiscal years 2020-21 and 2021-22.

About National Health Accounts Estimates

  • NHA estimates released by MoHFW since 2013-14. NHA for India was envisaged in National Health Policy, 2002.
  • The NHA offers a detailed description of the financial flows within India’s health system, illustrating how funds are collected from various sources, how they are spent across the healthcare sector, and how healthcare services are utilized.
  • NHA estimates are derived within the framework of National Health Accounts Guidelines for India, 2016 and prepared by using System of Health Accounts, 2011.
  • National Health Accounts Technical Secretariat (NHATS) prepared the NHA estimates with constant guidance and support from NHA Steering Committee and NHA Expert Group for India.

System of Health Accounts (SHA) 2011

  • It is a global standard framework for producing health accounts and facilitates comparison of estimates across countries.
  • It provides a standard for classifying health expenditures according to the three axes of consumption, provision and financing.
  • It is a result of a joint cooperation among Organization for Economic Cooperation and Development (OECD), World Health Organization (WHO), and Eurostat.

Key findings of NHA Estimates for India 

Health Indicator

Trend in 2021-22 (since 2017-18) 

Detail

Total Health Expenditure (THE) as percent of GDP and Per Capita

THE as percent of GDP increased to 3.83% from 3.31%.

THE per capita increased to Rs. 6,602 from Rs. 4,297

  • THE constitutes current and capital expenditures incurred by Government and Private Sources including External funds.
  • THE as a percentage of GDP indicates health spending relative to country’s economic development. 
  • THE per capita indicates health expenditure per person in the country.

Government Health Expenditure (GHE) as percent of THE

Increased to 48% from 40.8%

  • GHE constitutes spending under all schemes funded and managed by Union, State and local Governments including quasi-Governmental organisations and donors in case funds are channelled through Government organisations.

Current Health Expenditures (CHE) as percent of THE

Decreased to 87.3% from 88.5%

  • CHE constitutes only recurrent expenditures for healthcare purposes net all capital expenditures.
  • CHE as percent of THE indicate operational expenditures on healthcare that impact health outcomes of population in that particular year.

Out-of-Pocket Expenditures on Healthcare (OOPE) as percent of THE

Decreased to 48.8% from 64.2%

  • OOPE are expenditures directly made by households at the point of receiving healthcare. 
  • This indicates extent of financial protection available for households towards healthcare payments.

Social Security Expenditure (SSE) on health as percent of THE

Decreased to 8.7% from 9%

  • SSE includes government-funded health insurance schemes (PMJAY, RSBY etc.), social health insurance programs, and medical reimbursements to government employees for healthcare purposes and Social Health Insurance scheme expenditures.

Private Health Insurance Expenditures (PHIE) as percent of THE

Increased to 7.4% from 5.8% 

  • PHIE constitute spending through health insurance companies.

External/ Donor Funding for health as percent of THE

Increased to 1.1% from 0.5%

  • It constitutes all funding available to the country by assistance from donors.

Conclusion

The ongoing healthcare reforms will pave the way for a healthier, more equitable future for all citizens. Increasing healthcare spending plays a crucial role in strengthening healthcare infrastructure, expanding testing and treatment facilities, and plays a critical role in addressing pandemics like COVID-19 in the future.

  • Tags :
  • National Health Account
  • NHA
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