RAISING RETURNS: the DISTRIBUTION of HEALTH FINANCING and OUTCOMES in YEMEN Public Disclosure Authorized
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HNP DISCUSSIO N P A P ER Public Disclosure Authorized RAISING RETURNS: THE DISTRIBUTION OF HEALTH FINANCING AND OUTCOMES IN YEMEN Public Disclosure Authorized About this series... Heba A. Elgazzar This series is produced by the Health, Nutrition, and Population Family (HNP) of the World Bank’s Human Development Network. The papers in this series aim to provide a vehicle for publishing preliminary and unpolished results on HNP topics to encourage discussion and debate. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations or to members of its Board of Executive Directors or the countries they represent. Citation and the use of material presented in this series should take into account this provisional character. For free copies of papers in this series please contact the individual authors whose name appears on the paper. Enquiries about the series and submissions should be made directly to Public Disclosure Authorized the Editor Homira Nassery ([email protected]) or HNP Advisory Service ([email protected], tel 202 473-2256, fax 202 522- 3234). For more information, see also www.worldbank.org/hnppublica- tions. THE WORLD BANK 1818 H Street, NW Public Disclosure Authorized Washington, DC USA 20433 Telephone: 202 473 1000 Facsimile: 202 477 6391 Internet: www.worldbank.org E-mail: [email protected] February, 2011 RAISING RETURNS: THE DISTRIBUTION OF HEALTH FINANCING AND OUTCOMES IN YEMEN Heba A. Elgazzar February, 2011 Health, Nutrition and Population (HNP) Discussion Paper This series is produced by the Health, Nutrition, and Population Family (HNP) of the World Bank's Human Development Network. The papers in this series aim to provide a vehicle for publishing preliminary and unpolished results on HNP topics to encourage discussion and debate. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations or to members of its Board of Executive Directors or the countries they represent. Citation and the use of material presented in this series should take into account this provisional character. For free copies of papers in this series please contact the individual author(s) whose name appears on the paper. Enquiries about the series and submissions should be made directly to the Editor, Homira Nassery ([email protected]). Submissions should have been previously reviewed and cleared by the sponsoring department, which will bear the cost of publication. No additional reviews will be undertaken after submission. The sponsoring department and author(s) bear full responsibility for the quality of the technical contents and presentation of material in the series. Since the material will be published as presented, authors should submit an electronic copy in a predefined format (available at www.worldbank.org/hnppublications on the Guide for Authors page). Drafts that do not meet minimum presentational standards may be returned to authors for more work before being accepted. For information regarding this and other World Bank publications, please contact the HNP Advisory Services at [email protected] (email), 202-473-2256 (telephone), or 202-522-3234 (fax). © 2008 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, NW Washington, DC 20433 All rights reserved. ii Health, Nutrition and Population (HNP) Discussion Paper Raising Returns: The Distribution of Health Financing and Outcomes in Yemen Heba A. Elgazzara aHuman Development Middle East and North Africa, World Bank, Washington, DC, USA Paper prepared for World Bank Washington, DC, USA Abstract: Summary in 300 words maximum. Given relatively few resources and lagging health outcomes in Yemen, the quest for equitable, cost-effective health care delivery continues as long-term, sustainable development remains a priority. This paper assesses overall value for money of the health system mainly as indicated by an analysis of public expenditure trends from 1997 until 2008 and by the degree to which health care benefits are conferred equitably to the population. Total health expenditure in 2007 accounted for 5.2% of GDP, or only PPP$ 41 per capita, with nearly 70% sourced by direct household payments (67%). Despite recent improvements in health status, Yemen continues to lag behind countries of similar or lower income and health expenditure levels. Levels of health outcomes in Vietnam, Indonesia and the Kyrgyz Republic are 2 to 6 times better than levels found in Yemen regarding the proportion of infants with low birth weight, the prevalence of malnutrition amongst children, the rate of births delivered by skilled attendants, and the rate of coverage of antenatal services. Although health facilities are relatively evenly distributed across the population, the operational status and quality of these facilities is highly variable. The availability of pharmaceuticals at health facilities ranges from 31% of facilities having medications on site in the governorate of Al-Maharah to 94% in Amran. To more effectively alleviate inequities and inefficiencies in health service delivery in Yemen, national policies are recommended to more strategically prioritize resource allocation and develop innovative service delivery models to more efficiently connect rural communities. Keywords: public expenditure, financial management, efficiency, health equity, burden of disease Disclaimer: The findings, interpretations and conclusions expressed in the paper are entirely those of the authors, and do not represent the views of the World Bank, its Executive Directors, or the countries they represent. Correspondence Details: Heba A. Elgazzar, 1818 H Street Northwest, Washington, DC, 20433 USA. Email: [email protected] iii iv Table of Contents TABLE OF CONTENTS ..................................................................................................................... V LIST OF TABLES AND FIGURES ..................................................................................................... VI ACKNOWLEDGEMENTS ................................................................................................................. IX EXECUTIVE SUMMARY ................................................................................................................. XI I. BACKGROUND ......................................................................................................................... 1 Aims and Structure of the Paper .................................................................................................. 1 Methods, Data Sources and Limitations ...................................................................................... 1 II. COUNTRY CONTEXT .............................................................................................................. 2 Recent Economic Developments ................................................................................................. 2 Government Reform Program ..................................................................................................... 2 Health System Organization ........................................................................................................ 3 Trends in Health Outcomes ......................................................................................................... 3 III. HEALTH FINANCING TRENDS: AN OVERVIEW ....................................................................... 6 Total Health Expenditure ............................................................................................................ 6 Governmental Health Expenditure .............................................................................................. 9 Treatment Abroad ...................................................................................................................... 11 Public Expenditure Financial Accountability ............................................................................ 11 IV. HEALTH SYSTEM EQUITY: GEOGRAPHIC AND SOCIOECONOMIC PERSPECTIVES ............ 13 Health Outcomes ....................................................................................................................... 13 Distribution of Health Services ................................................................................................. 16 Utilization of Health Services ................................................................................................... 19 Household Out-of-Pocket Health Spending .............................................................................. 20 V. POLICY IMPLICATIONS: IMPROVING THE DISTRIBUTIONAL EFFECTS OF HEALTH FINANCING .................................................................................................................................... 23 STATISTICAL ANNEX .................................................................................................................... 25 Annex 1. Data sources .............................................................................................................. 25 Annex 2. Demographic and health indicators .......................................................................... 26 Annex 3. Millennium Development Goals indicators .............................................................. 29 Annex