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Squaring the cube: Towards an operational model of optimal universal health coverage

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  • Ochalek, Jessica
  • Manthalu, Gerald
  • Smith, Peter C.

Abstract

Universal Health Coverage (UHC) has become a key goal of health policy in many developing countries. However, implementing UHC poses tough policy choices about: what treatments to provide (the depth of coverage); to what proportion of the population (the breadth of coverage); at what price to patients (the height of coverage). This paper uses a theoretical mathematical programming model to derive analytically the optimal balance between the range of services provided and the proportion of the population covered under UHC, using the general principles of cost-effectiveness analysis. In contrast to most CEA, the model allows for variations in both the costs of provision and the social benefits of treatments, depending on the deprivation level of the population. We illustrate empirically the optimal trade-off between the size of the benefits package and the proportion of the population securing access to each treatment for a hypothetical East African country, based on WHO data on the costs and benefits of treatments at different coverage levels. We begin with a scenario allowing coverage levels to vary, then apply differential equity weights to the benefits of coverage, and finally illustrate a scenario where interventions are either provided at 95% coverage or not at all (as is usually done in health benefits package design) for comparison. The results present the optimal trade-off between the social benefits of pursuing full population coverage, at the expense of expanding the benefits package for ‘easier to reach’ populations.

Suggested Citation

  • Ochalek, Jessica & Manthalu, Gerald & Smith, Peter C., 2020. "Squaring the cube: Towards an operational model of optimal universal health coverage," Journal of Health Economics, Elsevier, vol. 70(C).
  • Handle: RePEc:eee:jhecon:v:70:y:2020:i:c:s0167629619301560
    DOI: 10.1016/j.jhealeco.2019.102282
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    References listed on IDEAS

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    4. Peter C. Smith, 2013. "Incorporating Financial Protection Into Decision Rules For Publicly Financed Healthcare Treatments," Health Economics, John Wiley & Sons, Ltd., vol. 22(2), pages 180-193, February.
    5. Ties Boerma & Patrick Eozenou & David Evans & Tim Evans & Marie-Paule Kieny & Adam Wagstaff, 2014. "Monitoring Progress towards Universal Health Coverage at Country and Global Levels," PLOS Medicine, Public Library of Science, vol. 11(9), pages 1-8, September.
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    8. Hauck, K. & Morton, A. & Chalkidou, K. & Chi, Y-Ling & Culyer, A. & Levin, C. & Meacock, R. & Over, M. & Thomas, R. & Vassall, A. & Verguet, S. & Smith, P.C., 2019. "How can we evaluate the cost-effectiveness of health system strengthening? A typology and illustrations," Social Science & Medicine, Elsevier, vol. 220(C), pages 141-149.
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    Cited by:

    1. Katherine T. Lofgren & David A. Watkins & Solomon T. Memirie & Joshua A. Salomon & Stéphane Verguet, 2021. "Balancing health and financial protection in health benefit package design," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 3236-3247, December.
    2. Kirwin, Erin & Meacock, Rachel & Round, Jeff & Sutton, Matt, 2022. "The diagonal approach: A theoretic framework for the economic evaluation of vertical and horizontal interventions in healthcare," Social Science & Medicine, Elsevier, vol. 301(C).
    3. Thomas, Steve & Johnston, Bridget & Barry, Sarah & Siersbaek, Rikke & Burke, Sara, 2021. "Sláintecare implementation status in 2020: Limited progress with entitlement expansion," Health Policy, Elsevier, vol. 125(3), pages 277-283.

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    More about this item

    Keywords

    Priority setting; Coverage; Equity; Global health; Universal health coverage; Cost-effectiveness;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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