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Is healthcare a 'Necessity' or 'Luxury'? an empirical evidence from public and private sector analyses of South-East Asian countries?

Khan JA, Mahumud RA - Health Econ Rev (2015)

Bottom Line: Fixed- and random-effect models were fitted to estimate income-elasticity of public, private and total healthcare expenditure.Inclusion of three-year lagged variables of GDP per capita in the models did not have remarkable influence on the findings.By increasing the public provisions of healthcare, more redistribution of healthcare resources can be ensured, which can accelerate the journey of SEAR countries towards universal health coverage.

View Article: PubMed Central - PubMed

Affiliation: Health Economics and Financing Research Group, Centre of Equity and Health Systems, icddr,b, 68 Shahid Tajuddin Ahmed Sharani, Mohakhali, Dhaka - 1212 Bangladesh ; Centre for Excellence in Universal Health Coverage at icddr,b and James P Grant School of Public Health, BRAC University, Dhaka, Bangladesh ; Adjunct Researcher, Health Economics Unit, Department of Learning, Informatics, Management and Ethics (LIME), Karolinska Institutet, SE-171 77 Stockholm, Sweden.

ABSTRACT
South-East Asian Regional (SEAR) countries range from low- to middle-income countries and have considerable differences in mix of public and private sector expenditure on health. This study intends to estimate the income-elasticities of healthcare expenditure in public and private sectors separately for investigating whether healthcare is a 'necessity' or 'luxury' for citizens of these countries. Panel data from 9 SEAR countries over 16 years (1995-2010) were employed. Fixed- and random-effect models were fitted to estimate income-elasticity of public, private and total healthcare expenditure. Results showed that one percent point increase in GDP per capita increased private expenditure on healthcare by 1.128%, while public expenditure increased by only 0.412%. Inclusion of three-year lagged variables of GDP per capita in the models did not have remarkable influence on the findings. The citizens of SEAR countries consider healthcare as a necessity while provided through public sector and a luxury when delivered by private sector. By increasing the public provisions of healthcare, more redistribution of healthcare resources can be ensured, which can accelerate the journey of SEAR countries towards universal health coverage.

No MeSH data available.


Trend of health expenditure per capita (PPP adjusted US$) in SEAR Countries over 1995 -2010.
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Fig1: Trend of health expenditure per capita (PPP adjusted US$) in SEAR Countries over 1995 -2010.

Mentions: Table 1 shows the descriptive statistics of the variable of interest in SEAR countries. Average values of the variables in 1995-2010 with 95% confident interval, and number of observations (on the basis of which the statistics were calculated) were presented for each country separately as well as for all countries. The income of the countries ranged between US$ 938.4 (Nepal) and US$ 6,355.6 (Thailand). Among these 9 countries Maldives experienced the largest total health expenditure per capita (US$ 333.0) while Bangladesh had the lowest expenditure (US$ 32.3). The trends of public and private expenditure as well as their total in each country were presented in Figure 1. Demographic characteristics showed that some countries had higher proportion of female (Nepal, Sri Lanka and Thailand) while most of the countries had higher number of male population. Indonesia experienced the largest urbanization with 43.9% population in the urban areas. Nepal on the contrary had only 14.3% urban people. Thailand had largest proportion of elderly population (7.5%), followed by Sri Lanka (7.0%). Lowest proportion of elderly was observed in Timor-Leste (2.6%). Life expectancy at birth was high in Thailand and Sri Lanka with 73.0 years and 72.3 years respectively, when Timor-Leste had the lowest (57.8 years).Table 1


Is healthcare a 'Necessity' or 'Luxury'? an empirical evidence from public and private sector analyses of South-East Asian countries?

Khan JA, Mahumud RA - Health Econ Rev (2015)

Trend of health expenditure per capita (PPP adjusted US$) in SEAR Countries over 1995 -2010.
© Copyright Policy - open-access
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC4384960&req=5

Fig1: Trend of health expenditure per capita (PPP adjusted US$) in SEAR Countries over 1995 -2010.
Mentions: Table 1 shows the descriptive statistics of the variable of interest in SEAR countries. Average values of the variables in 1995-2010 with 95% confident interval, and number of observations (on the basis of which the statistics were calculated) were presented for each country separately as well as for all countries. The income of the countries ranged between US$ 938.4 (Nepal) and US$ 6,355.6 (Thailand). Among these 9 countries Maldives experienced the largest total health expenditure per capita (US$ 333.0) while Bangladesh had the lowest expenditure (US$ 32.3). The trends of public and private expenditure as well as their total in each country were presented in Figure 1. Demographic characteristics showed that some countries had higher proportion of female (Nepal, Sri Lanka and Thailand) while most of the countries had higher number of male population. Indonesia experienced the largest urbanization with 43.9% population in the urban areas. Nepal on the contrary had only 14.3% urban people. Thailand had largest proportion of elderly population (7.5%), followed by Sri Lanka (7.0%). Lowest proportion of elderly was observed in Timor-Leste (2.6%). Life expectancy at birth was high in Thailand and Sri Lanka with 73.0 years and 72.3 years respectively, when Timor-Leste had the lowest (57.8 years).Table 1

Bottom Line: Fixed- and random-effect models were fitted to estimate income-elasticity of public, private and total healthcare expenditure.Inclusion of three-year lagged variables of GDP per capita in the models did not have remarkable influence on the findings.By increasing the public provisions of healthcare, more redistribution of healthcare resources can be ensured, which can accelerate the journey of SEAR countries towards universal health coverage.

View Article: PubMed Central - PubMed

Affiliation: Health Economics and Financing Research Group, Centre of Equity and Health Systems, icddr,b, 68 Shahid Tajuddin Ahmed Sharani, Mohakhali, Dhaka - 1212 Bangladesh ; Centre for Excellence in Universal Health Coverage at icddr,b and James P Grant School of Public Health, BRAC University, Dhaka, Bangladesh ; Adjunct Researcher, Health Economics Unit, Department of Learning, Informatics, Management and Ethics (LIME), Karolinska Institutet, SE-171 77 Stockholm, Sweden.

ABSTRACT
South-East Asian Regional (SEAR) countries range from low- to middle-income countries and have considerable differences in mix of public and private sector expenditure on health. This study intends to estimate the income-elasticities of healthcare expenditure in public and private sectors separately for investigating whether healthcare is a 'necessity' or 'luxury' for citizens of these countries. Panel data from 9 SEAR countries over 16 years (1995-2010) were employed. Fixed- and random-effect models were fitted to estimate income-elasticity of public, private and total healthcare expenditure. Results showed that one percent point increase in GDP per capita increased private expenditure on healthcare by 1.128%, while public expenditure increased by only 0.412%. Inclusion of three-year lagged variables of GDP per capita in the models did not have remarkable influence on the findings. The citizens of SEAR countries consider healthcare as a necessity while provided through public sector and a luxury when delivered by private sector. By increasing the public provisions of healthcare, more redistribution of healthcare resources can be ensured, which can accelerate the journey of SEAR countries towards universal health coverage.

No MeSH data available.