External Funding and its Effects on Out-of-Pocket Expenditure in SAARC Nations: Global Health Financing Strategies

Abstract

Out-of-pocket health expenditure causes a detrimental impact on health outcomes and also contributes to impoverishment and healthcare catastrophe, a major concern in healthcare financing, prevailing in developing nations. Various components of Current Health Expenditure (CHE) affect the OOPS. This research study focuses on the impact of External Health Expenditure (EHE) on Out-of-pocket health expenditure in South Asian Association for Regional Cooperation (SAARC) nations. The objective of this research study is to conduct a comprehensive analysis of patterns and trends in external health expenditure and its impact on Out-of-pocket spending in SAARC nations and provide recommendations to optimize global health financing strategies by addressing common challenges, enhancing the understanding and cooperation for mutual benefits. The study follows a descriptive research design depending on secondary quantitative data from the WHO Global Health Expenditure Database for the years 2012 to 2021. Descriptive statistics explore the relationship and trend of external health expenditure and out-of-pocket spending. The discussion highlights the importance of understanding the external sources of funding and its role in promoting accessibility, and affordability to enhance public health and health outcomes by mutual collaboration for good policies and practices. The research findings emphasize the noticeable impact of external health expenditure on out-of-pocket spending in SAARC countries. So there is a scope for health diplomacy in India. Further researchers, policymakers, and healthcare providers can utilize these findings in developing cost-effective interventions, designing pro-poor financial schemes, and other initiatives to reduce the financial burden on individuals.