Private financing in health system can either be through private insurance or patient out-of-pocket payments. Private insurance refers to a plan where a patient pays a premium and is needed to pay a deductible, and the insurer covers the remaining cost. Out-of-pocket payment is when the patient pays the entire fee charged for the provision of certain health services. Private financing ensures that additional resources get channeled towards health systems on top of what the government generates. Private funding serves as a valve to cheap when the public funding fails. Private financing helps in reducing waiting times experienced by the public financed health system. A health system that is privately funded means ensures that people are more responsible for their healthcare and more empowered and willing to make payment for the services. When people pay for their treatment, have the right to choose the doctor to treat them (Cuff et.al 2012, p.90). Privately financed health systems tend to have money as compared to the public funded system and hence they have access to better-improved facilities.
The public funded health system is the system that government takes part of funding health care provision. Public financing can either through tax based funding or social security funding. Tax-based funding is whereby the government uses the taxpayers’ money to provide services in the health system (Paolucci 2001). Social security funding collects premiums through "sickness funds" which membership is compulsory. Public financing of health system ensures easy access to health care and its facilities. It makes access to health care be on need and not ability to pay. It ensures that there is no discrimination when it comes to getting health care provision. Public financing creates equality as the order of treatment is determined by the severity of the patient condition and who visited the place first. Healthcare provision does not depend on how much money one has opposed to the privately financed health system (Normand & Thomas 2008, p.168). Health care in the public financed health system is less expensive than the privately funded health system. The administration costs are the responsibility of the government. Public financing health system helps the government to be accountable for its citizen’s health.
According to Paolucci (2011), both public and private funding has their strengths and weakness. The private funding system, for instance, makes the patients spend much money to acquire healthcare when the government should take responsibility to offer quality health care. However, this kind of financing ensures that the people are responsible for their health status. On the other hand, public funding uses tax payers’ money which means an increase in the amount deducted in their salaries. Even at any time, they would be protesting on the reduction of the taxed amount it will mean underfunding of the health service. However, one cannot ignore the fact that publicly financed health system ensures equal access to health care.
In conclusion, it is important to embrace a financing system that encompasses both the public and private financing. When both strategies are in use, one strategy shortcomings are remedied by the other strategy strengths. With the changes in health service provision, one form of financing is not enough to ensure all the people have access to the quality healthcare (Dutta 2014, p.200). With the use of the two methods of financing, health service is cheaper and affordable.
References
Cuff, K., Hurley, J., Mestelman, S., Muller, A., & Nuscheler, R. (2012). Public and privatehealth‐care financing with alternate public rationing rules.Health economics, 21(2), 83-100.
Dutta, S. (2014). Chapter-26 Health Financing Public and Private. Health Economics for Hospital Management, 194-210. doi:10.5005/jp/books/12295_26
Normand, C., & Thomas, S. (2008). Health Care Financing and the Health System. International Encyclopedia of Public Health, 160-174. doi:10.1016/b978-012373960-5.00167-2
Paolucci, F. (2011). Health care financing and insurance: Options for design. Berlin: Springer.
