better systems, better health
[email protected] www.HealthSystems2020.org Health Care Financing Reform in Ethiopia: Improving Quality and Equity Abstract BACKGROUND Ethiopia endorsed a health care financing strategy in 1998 HEALTH STATUS that envisioned a wide range of reform initiatives. The implementation of these reform initiatives was legalized Ethiopia is situated in the northeastern segment through regional legislations and operationalized in line with of the African continent, commonly known as the prototype implementation frameworks that were modified Horn of Africa, with a land mass of 1.14 million and aligned within specific regional contexts. In 2004, actual square kilometers. With a total population of implementation was initiated in Amhara, Oromia, and Southern Nations, Nationalities, and People (SNNP) Regional States more than 73.9 million in 2007, Ethiopia is the following ratification and endorsement of regional proclamations, third most populous country in Africa, following regulations, and directives by the respective regional councils Nigeria and Egypt. (Parliaments), regional executive Councils (Cabinets), and Regional Health Bureaus (RHBs). Currently, the reforms have More than 44 percent of the population is under expanded to the remaining regions, with the exception of Afar the age of 15 years, and over half (52 percent) and Somali, which are still in the process of endorsing legal and of the population is in the age range of 15 to 65 operational frameworks. All other regions (Tigray, Benshangul- years. Preventable communicable diseases and Gumuz, Gambella, Harari, Addis Ababa, and Dire Dawa) have nutritional disorders continue to be major health already begun implementation. issues. The most recent vital health indicators The strategy recognized that health care should be financed through multiple financing mechanisms to ensure long-range (2007/08) show a life expectancy of 54 years sustainability.