In order to modify the historical method of allocating public financial resources to health care, Project 2000 has developed and implemented a decentralized Programming and Budgeting System at the regional level. This system is composed of four modules that deal with: i) setting regional health priorities based on an analysis of the regional health situation (mainly morbidity and mortality), ii) programming production goals based on standard programming and coverage criteria, iii) estimating unit cost of personnel and input requirements considering local prices, and iv) determining the required budget and estimating the diverse financial sources available to the region. Through an iterative process of adjusting production goals, the required budget is balanced with the available funding.
After the design and validation process, the Programming and Budgeting System was implemented in the 34 health regions of the country. A key component of the implementation phase was the creation in each Health Directorate of a multifunctional budget team in charge of collecting the information, processing the data, and analyzing the results.
On the basis of the results, National Referential Unit Costs have been estimated to establish a guideline for evaluating each region’s efficiency at providing services. A budget allocation formula has been designed that takes into account health needs and priorities, health service coverage, and costs in each region. The application of this budget allocation system can help overcome the current inefficiency and inequity of public expenditure in health.
Learning Objectives: 1. Explain the impact of budget allocation criteria on efficiency and equity. 2. Describe the four modules that make up the Programming and Budgeting System
Keywords: Financing, Sustainability
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.