Health and economics are interlinked, as health requires resources like money, time, and services provided through economic means. A person's health is correlated with their access to healthcare, which is impacted by a nation's health-related investments, funding, and policies. In Nepal and worldwide, many barriers exist that prevent people from accessing adequate economic health facilities, leading 150 million people to suffer financial hardship annually due to direct medical costs. While governments work to increase access to healthcare, high rates of corruption limit the impact of increased funding. Nepal spends only a small percentage of its budget and GDP on healthcare, resulting in most health expenditures being paid directly by individuals. To address this, Nepal has begun pilot programs for universal health insurance to help make

1. Presented by: Shisam Neupane
BPH
1st semester
Kantipur Academy of Health Science

2. Health Economics
‘Health’ and ‘economics’; though seem to be really
different topics, they are totally interlinked. Health, in
general, is the physical, mental, social and spiritual
condition of an individual whereas economics, mostly
deals with money, resources, ideas, time etc i.e resources
needed for good health.
It must be well understood that health of people
nationwide is correlated with health-care interventions,
investments, funds and services/policies which comes
under economics.

3. Health Problems: In Nepal and Worldwide
Though governments and organizations are making
plans and implementing projects for economic
health facilities, lots of barriers are intervening.
Acc. to WHO, around 150 million people suffer each
year severely due to financial hardship as they’ve to
pay out from their own pocket when they receive
health care.
People are unaware and those who have knowledge
how important health and health economy is but
they ignore unless they suffer.
Ratio of funds and expenditure is increasing every
year but result is almost negligible as corruption rate
is very high.

4. Health Care Expenditure
 In 2002, the government funding for health
matters was approximately US$2.30 per person.
 Approximately 70% of health expenditures came
from out-of-pocket contributions.
 Government allocation for health care was around
5.8% of the budget for 2009.
 In 2012, the Nepalese government decided to
launch a pilot program on universal health
insurance in three districts of the country.

5. Health Insurance
 Poor people can have trouble accessing quality
healthcare and buying the drugs they need to maintain
health.
 Countries like Nepal are looking for cost-effective ways
to provide healthcare through subsidized insurance that
can increase enrollment, also providing reduce costs.
• Health insurance is a tool to improvise the health
condition of a nation by making health facilities
affordable.

6. Health Insurance Scheme
 The irony of mushrooming health service institutions is that
they are centralized in urban areas ignoring the rural parts
and poor people.
 Government is working to execute Health Insurance Scheme
for fair distribution of health care services nationwide.
 This policy is a collaborative scheme of public and
government where public will fund the insurance as
premiums(Rs. 2500 for a family with 5 members, per year)
and government will fund the rest (upto Rs. 50000 per year)
any time when needed, that reduces out-of-pocket
expenditure and may help to decrease mortality rate due to
lack of health expenditure.
Source: The Rising Nepal

7. Acc. To Dr. ShivaRaj Adhakari, one of Nepal’s renowned
health economist, only 3-4% of people in health sector in
Nepal have any idea about health economics.