The maturity of the HIV/AIDS epidemic in South Africa has brought competing agendas for prevention and impact mitigation to the table. Given the resource constraints it is imperative that any interventions are thoroughly assessed for their efficacy, costs and benefits. The challenge to succeed with primary prevention of new infections remains the key long-term solution to the epidemic. Ensuring the availability of resources for delivering this intervention in a cost-effective and sustained manner remains a challenge. This report contributes to this by providing an assessment of the cost side of this equation. This research is part of a larger evaluation of the pilot PMTCT programme in South Africa, and has been commissioned by the Health Systems Trust on behalf of the Department of Health.
Resource allocation and health financing
In the past two years, the political commitment to respond to the HIV/AIDS pandemic has increased substantially. In this policy environment, the importance of information on resources allocated to HIV/AIDS prevention and care has increased. In order to avoid resource misallocation, policy makers need information on the level and flow of current resource allocations to HIV/AIDS. They need to know where money for HIV/AIDS prevention and care is coming from, the services and commodities that are purchased with these funds, and the population coverage of the implemented interventions. At the same time, to identify needs and plan strategically, policy-makers require information on the scale of resources required to prevent the further spread of HIV and to provide adequate care for those people living with HIV/AIDS.
This PRHPlus article outlines the key advantages of using the National Health Accounts (NHA) Subanalysis to track resource flows for HIV/AIDS. In light of the HIV/AIDS epidemic, many countries are facing increased pressure to expand health care resources with limited and unreliable public funding. While global initiatives have responded in part to these concerns, there is growing need to use available funds efficiently, and to track resources which promote transparency and accountability. The authors maintain that financial indicators to track resource use, which link to health outcomes, are an integral part of the monitoring and evaluation strategy.
This paper presents a model for estimating HIV/AIDS health care resource needs in low- and middle-income countries. The model presented was the basis for the United Nations' call for US$9.2 billion to address HIV/AIDS in developing countries by 2005 with US$4.4 billion to address HIV/AIDS health care and the rest to deal with HIV/AIDS prevention. The model has since been updated and extended to produce estimates for 2007. This paper details the methods and assumptions used to estimate HIV/AIDS health care financial needs and it discusses the limitations and data needs for this model.
The starting point of this paper is to briefly discuss alternative definitions of ‘fair financing’. The term ‘fair financing’ was popularised by the WHO in their 2000 World Health Report, which set about evaluating and ranking health systems around the world. The WHO has defined this concept as individuals paying for health services in proportion to their income. Others suggest that a more ‘progressive’ definition of fair financing would be appropriate. The focus of the paper is to review the key findings of work relating to health care financing that has been supported by Equinet over the past few years. In addition, other striking health care financing trends in the SADC region will be referred to.
In the context of inadequate public expenditure in the health sector, many countries have installed cost recovery systems, such as user fees, as a supplementary financing approach for health care services. This practice has raised concerns over equity and access to health care for the poor, and the search for complementary financing solutions continues. A 1997 review identified 81 documented CBHF schemes from throughout the world, with the majority in sub-Saharan Africa and Asia. This document aims to answer basic questions on CBHF that might be posed by policymakers and technical assistance providers interested in this topic.
The economic benefits of better access to clean water outweigh the extra investment necessary eight-fold by creating a healthier workforce, the World Health Organisation said in a report. An additional investment of around 11.3 billion dollars (9.5 billion euros) per year on top of the money already being spent on improving basic sanitation facilities could generate a total economic benefit of 84 billion dollars annually, the report said. Such an investment would reduce the global occurrence of diarrhoea by an average of 10 percent, according to the study by the Swiss Tropical Institute, which was commissioned by the WHO.
This fact sheet analyses current trends in the global funding of HIV/AIDS. It argues that funding to address the epidemic (provided by major donor governments, multilateral organisations, affected countries, and the private sector) has only recently increased to significant levels, but it is still less than estimated need. Actual spending is typically less than budgeted funding, and in 2003 both were well below the estimated need of $6.3 billion. Some key findings included the fact that budgeted funding for HIV/AIDS in 2003 totalled $4.2 billion while actual spending in 2003 totalled about $3.6 billion. In addition, donor governments provide 61% of budgeted funding to address HIV/AIDS in resource poor settings utilising bilateral and multilateral channels.
The lack of health care resources is the most obvious barrier for developing countries to reach TB control targets. However, there is a strong association between poverty and TB, say researchers from Belgium's Institute of Tropical Medicine. The number of tuberculosis cases continues to rise worldwide and only a minority of people has access to high quality tuberculosis services. Tuberculosis control cannot reach its targets without investing in an adequate network of accessible, effective and comprehensive health services, say the researchers. However, only a small proportion of all TB patients in the world are detected and many are diagnosed and treated late. The researchers identify many problems in the way in which care and support are delivered. These include insufficient and rundown health facilities, lack of trained and motivated staff, shortages of drugs and medical supplies, poor supervision of health personnel and difficult communication and transport. In many regions, the private health sector is growing rapidly while the regulatory system remains poor.
This paper by the Southern African Regional Poverty Network examines the backlog in the delivery of water and electricity services for the rural population in South Africa. It argues that considerable additional resources to those currently assigned by the government are needed to make these services available to the rural poor. The paper identifies the backlogs in the water and electricity sectors, their location, and the additional investment needed to meet backlogs. It says that the backlog in electricity has proved stubborn: although it was predicted that at the end of the year 2000 about 2,75 million households would be without electricity, the total in that year was 3,65m. In 1994 the backlog in water delivery was some 12m people - now it has been calculated at 10,554,306.