Charging for health services in the third world

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In developing countries the increasing tendency to charge for the use of health services is the result of the collapse of government funding for health programs and the general trend toward privatization. Restraints on government spending, especially on social programs, have been reinforced by loan conditions imposed by the International Monetary Fund and the World Bank. On the other hand, governments have committed themselves to the objectives of Health for All, and they have to maximize access to essential services for prevention and treatment of diseases. Charges are sometimes advocated as a means of reducing frivolous use of services. Studies have suggested that in Peru and rural Ivory Coast a modest rise in charges is likely to reduce use of services substantially for those on very low incomes, while those whose needs are the lest will continue to use services. Scarce facilities, skilled professionals, and other services provided at public expense are involved in the provision of basic health care. It is particularly difficult to recover the cost of training of doctors and nurses. Provision of technically advanced services for a minority who can afford to pay is almost always subsidized by governments and may deprive the rest of the population of key resources. The trend to introduce charges for family planning services and services for the treatment and prevention of communicable disease may have serious consequences. However, the collapse of government funding for health services in many developing countries requires alternative sources of funding for basic primary care. Some user charges may be justified, especially if these revenues result insubstantial improvements in the quality and availability of services. Development of feasible mechanisms for greater risk sharing in the longer term remains a priority if the most regressive effects of charges are to be avoided.