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Analytical summary - Health financing system

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The Zambian Health Sector is donor reliant. By 2006, 42% of the health sector expenditures coming from donors, 27% from households, 24% from government, 5% from employers and 1% from others. This is partly due to the SWAp arrangement and an upsurge in the number of parallel projects and vertical programmes which represents the bulk of external aid.

On the other hand the country is yet to develop a holistic and explicit policy on Health Care Financing and this has to some extent lead to fragmented financing of the health care services and inadequate Knowledge on the projected health care resource envelope.

In 2006 the country abolished user fees in health centres and districts hospitals of rural and peri – urban areas in an attempt to increase equity of access to health care services. A programme of social health insurance is also under study and is aimed at complimenting the existing resources for the health sector. Furthermore the government is also in the process of implementing Performance Based Financing Schemes (PBFS) in order to optimize the use of scarce resources.