Required Funding in Healthcare Demands Bold Approach
Vietnam, inspired by the success stories of countries like Thailand, South Korea, and Germany, is looking to adapt their lessons to shape the next phase of healthcare reform. The aim is to provide free medical examination and treatment services for all citizens, and to achieve this, a multipronged strategy is being pursued.
The success of a health financing system depends on a combination of political will, legal frameworks, financial sustainability, and institutional capacity. Improving the efficiency of health financing in Vietnam requires attention to several key areas.
Firstly, exploring options for increasing fiscal space for health spending is crucial. This could involve stable funding sources from the state budget and the Vietnam Social Security, which can increase the flexibility of health budgets.
Secondly, moving towards compulsory health insurance is a significant step. Mandatory enrolment, especially for workers in the informal sector, can help create large, risk-sharing funds and reduce inequalities.
Thirdly, modernizing pay mechanisms for service providers and investing in primary care infrastructure are essential. This will help improve the efficiency of service delivery and reduce the overreliance on hospital care.
Coordination among stakeholders, including the government, insurers, providers, development partners, and civil society, is essential to achieve a fairer and more sustainable health system. Out-of-pocket spending remains relatively high in Vietnam, placing financial pressure on households and limiting access to necessary services.
Targeted financial support for vulnerable groups, such as the poor, ethnic minorities, and children under six, is a key part of the strategy. The Vietnamese government has introduced targeted support programs like the Health Care Fund for the Poor (HCFP), which has increased service utilization and reduced catastrophic health spending. However, challenges remain in fully reducing out-of-pocket costs and improving the targeting mechanism.
Digital transformation in health insurance administration is another priority. The application of information technology and digitalization enhances transparency, reduces administrative costs, and facilitates better tracking of fund usage and service delivery.
Strategic procurement, which allocates resources based on performance and the health needs of the population, can significantly improve efficiency in health financing. Guidance on drug registration, incentives for technology transfer initiatives, and intensive healthcare professional training are advocated for to bring affordable quality medicines to Vietnamese people.
Lastly, bold, strategic reforms that address systemic issues beyond just financial inputs are necessary. This includes improved governance, better service delivery models, and comprehensive policies to achieve sustainable, efficient health financing across the country.
In summary, Vietnam’s efficiency improvements in health financing rest on a combination of better fund management, targeted subsidies, digital innovation, and institutional strengthening within the healthcare system and health insurance administration. The promotion of generic drugs and biosimilars is a priority in the healthcare agenda to ensure accessibility and affordability of high-quality medicines in Vietnam.
[1] World Bank. (2021). Vietnam: Strengthening the Health Financing System. [2] World Health Organization. (2020). Health System Performance Assessment: Vietnam 2020. [3] Asian Development Bank. (2020). Strengthening Health Financing and Delivery in Vietnam. [4] Molnar, A. (2021). Health Financing in Vietnam: Challenges and Opportunities. European Chamber of Commerce in Vietnam. [5] Vietnam Ministry of Health. (2021). Health Sector Reform Strategy 2021-2030.
Science plays a crucial role in improving the efficiency of health financing in Vietnam, as strategic procurement, guidance on drug registration, and intensive healthcare professional training are based on evidence-based approaches. Moreover, digital transformation in health insurance administration can increase transparency and reduce administrative costs, thereby promoting health-and-wellness within the Vietnamese population.
