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User fees

User fees have been widely implemented throughout the developing world since the early 1980s under the Bamako Initiative, which advocated for cost sharing and community participation to (in theory) increase the sustainability and quality of health services. The continuing application of user fees has been a highly controversial issue.

There is now a considerable literature on the impact of user fees. This includes documents examining alternatives to user fees or ways of adapting the user fee mechanism to reduce the negative consequences (e.g. user fee exemptions, community health insurance). The appropriateness of user fees for services used by the poor has become an important point of debate, particularly in the light of commitments made to achieve international development targets.

Paying out-of-pocket for health care in Asia: catastrophic and poverty impact

This Equitap paper analyses the extent of out-of-pocket (OOP) payments for healthcare in 14 countries in Asia, and the impact of these payments on household’s income and resources and vulnerability to poverty. It finds that the heavy reliance on OOP financing for healthcare has important consequences for living standards.

Recommended readings

World Development Report 2004: making services work for poor people
( World Development Report, World Bank , 2003)
Recommended reading
This issue of the WDR focuses on policies for improving the access of poor people to affordable, better quality services in health, education, water, sanitation, and electricity.

The report focuses ...

Mobilizing resources for health: the case for user fees revisited
( D. Arhin-Tenkorang / World Health Organization , 2000)
More than a decade has passed since many developing countries introduced user fees for health services, but so far the benefits predicted by the World Bank and others have not been achieved. This wor...
Waivers and exemptions for health services in developing countries
( R. Bitrán; U. Giedion / World Bank , 2003)
The problem with user fees is that the poorest people might not be able to pay them, and so not get the health care they need. This discussion paper from the World Bank Institute’s Social Safety Net P...

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Economic consequences of healthcare utilization in rural Bangladesh
( Abbas Bhuiya / Future Health Systems research consortium , 2009)
What is the cost of health care services? With an overwhelming majority of the population in Bangladesh living below the poverty threshold, this is an important question. The authors argue that the pe...
Achieving improvements in Afghan health care
( Johns Hopkins Bloomberg School of Public Health , 2006)
The Ministry of Public Health of the Islamic Republic of Afghanistan has adopted the Balanced Scorecard (BSC) for use as a tool to measure and manage performance in delivery of the Basic Package of He...
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Key issues: user fees for health


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