Health Reform Project

closed

Closed

The overall goal of the Health Sector Modernization Support Sectoral Adjustment Loan (HSMS SECAL) Project, is to support comprehensive health sector reforms that promote fiscal sustainability, while continuing to provide quality health care services, and financial protection for the population. The overarching objectives are to: (a) improve fiscal discipline through structural changes in the health sector, that will alleviate the chronic problem of arrears in the sector, encourage greater technical, and allocation efficiency, and institute a system that will promote fiscal sustainability; (b) improve the quality and cost-effectiveness of the health sector; and, (c) mitigate any possible negative impacts on health care access, especially for vulnerable populations. Implementation of the reforms supported by HSMS SECAL would contribute significantly to expenditure control in the short term, and reductions in the medium term. However, risks include weak expenditure management by health insurance companies and hospitals, and excess hospital capacity. While it is imperative that key legislation is passed, so that the reform implementation have the appropriate legal support, there is the likelihood of adverse outcomes due to reform itself. Nevertheless, in the current context of already high expenditures for health care, there is little realistic opportunity to mobilize significant additional resources, to balance expenditures and revenues. For the government strategy to succeed, measures to mitigate risks include a careful sequencing and phasing of the reforms, supported by laws and regulations, including prudent financial supervision, where regulations, and incentive structures should be technically designed. Monitoring capacity of access to health care, and private expenditures should be established, including capacity building for key health sector staff.

FY17 - Health,FY17 - Public Administration

World Bank Group

Project

Hospital, Commercial, Government