The significant improvements in health technology and wider and superior range of pharmaceutical...

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The significant improvements in health technology and wider and superior range of pharmaceutical products, has meant that demand for the use of more expensive equipment and access to better treatment, has increased significantly over the last decade (Robinson, XXXXXXXXXXGlobalisation has also meant that patients’ have become better-informed consumers and want to have greater choice of service providers that they can access (Robinson, XXXXXXXXXXThus Governments are increasingly challenged to provide a greater range and better quality services within a resource constrained environment and are seeking to pursue more market-based approaches that can provide incentives and improve quality and efficiencies within the system (Robinson, 2006; Merson, Black & Mills, XXXXXXXXXXGovernments play a critical role in health financing, especially in terms of revenue collection, pooling of resources and purchasing of service provision (WHO, 2000; Merson, Black & Mills, XXXXXXXXXXThe pooling of resources is an important concept that denotes the accumulation of revenue with the population sharing the financial risk, rather than the individual contributor (Robinson, 2006; WHO, XXXXXXXXXXPurchasing is then how funds from the pool are then allocated to providers of health services for interventions that are specified or unspecified (Robinson, 2006; WHO, XXXXXXXXXXThis can be done either through public funding or private financing (WHO, 2000; Robinson, XXXXXXXXXXWhether market-based financing improves health system performance over public financing is not determined by the source of financing per se, but rather by the differences that exist between prepayment and out-of-pocket expenses (WHO, XXXXXXXXXXEfficient outcomes that can arise from private markets do not necessarily apply to health care, where asymmetry of information and uncertainty prevails (Merson, Black & Mills, XXXXXXXXXXEven if there is a private market that is functioning

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Discussion
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Changes in the market environment have impacted several social elements that influence 
consumer demand from the market; for instance, increase in education, income, use of 
internet have made consumers more aware and demanding (Murray & Frenk, 2000). It is true 
that resource allocation and risk distribution is widely dependent on the financing mechanism 
that is being used by the government. It is crucial to understand the relationship between the 
designing of fund pooling and its impact on health sector performance. The given essay 
discussed about different types of fund pooling strategies such as public funding, private 
financing, market based financing and public private partnership (World Health Organization, 
2000).  
As it also states that inability of equal access to information is the major challenge for private 
sector financing model; so what strategies can be adopted to ensure better information 
sharing and lowering down uncertainty level in private sector? Activity based funding is 
a patient centric funding system as it is totally interrelated with the output produced. 
Component of this funding system include classification, counting and costing (Robinson, 
2006).

The significant improvements in health technology and wider and superior range of pharmaceutical products, has meant that demand for the use of more expensive equipment and access to better treatment,...

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