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
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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 |
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Government Health Expenditure (GHE) as percent of THE | Increased to 48% from 40.8% |
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Current Health Expenditures (CHE) as percent of THE | Decreased to 87.3% from 88.5% |
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Out-of-Pocket Expenditures on Healthcare (OOPE) as percent of THE | Decreased to 48.8% from 64.2% |
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Social Security Expenditure (SSE) on health as percent of THE | Decreased to 8.7% from 9% |
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Private Health Insurance Expenditures (PHIE) as percent of THE | Increased to 7.4% from 5.8% |
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External/ Donor Funding for health as percent of THE | Increased to 1.1% from 0.5% |
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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.