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Published in: Human Resources for Health 1/2023

Open Access 01-12-2023 | Research

Health expenditure: how much is spent on health and care worker remuneration? An analysis of 33 low- and middle-income African countries

Authors: Hapsatou Toure, Maria Aranguren Garcia, Juana Paola Bustamante Izquierdo, Seydou Coulibaly, Benjamin Nganda, Pascal Zurn

Published in: Human Resources for Health | Issue 1/2023

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Abstract

Objectives

To assess the amount spent on health and care workforce (HCW) remuneration in the African countries, its importance as a proportion of country expenditure on health, and government involvement as a funding source.

Methods

Calculations are based on country-produced disaggregated health accounts data from 33 low- and middle-income African countries, disaggregated wherever possible by income and subregional economic group.

Results

Per capita expenditure HCW remuneration averaged US$ 38, or 29% of country health expenditure, mainly coming from domestic public sources (three-fifths). Comparable were the contributions from domestic private sources and external aid, measured at around one-fifth each—23% and 17%, respectively. Spending on HCW remuneration was uneven across the 33 countries, spanning from US$ 3 per capita in Burundi to US$ 295 in South Africa. West African countries, particularly members of the West African Economic and Monetary Union (WAEMU), were lower spenders than countries in the Southern African Development Community (SADC), both in terms of the share of country health expenditure and in terms of government efforts/participation. By income group, HCW remuneration accounted for a quarter of country health expenditure in low-income countries, compared to a third in middle-income countries. Furthermore, an average 55% of government health expenditure is spent on HCW remuneration, across all countries. It was not possible to assess the impact of fragile and vulnerable countries, nor could we draw statistics by type of health occupation.

Conclusions

The results clearly show that the remuneration of the health and care workforce is an important part of government health spending, with half (55%) of government health spending on average devoted to it. Comparing HCW expenditure components allows for identifying stable sources, volatile sources, and their effects on HCW investments over time. Such stocktaking is important, so that countries, WHO, and other relevant agencies can inform necessary policy changes.
Appendix
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Footnotes
1
All of the values in this paper are per year. This can be either calendar or fiscal, depending on the country's context.
 
2
“Public” means government-owned resources (collected through taxation) and mandatory contributions to social health insurance schemes, when existing. “Private” refers to out-of-pocket payments and contributions to voluntary health insurance, i.a. “External” refers to funds from abroad (e.g., foreign countries, multilateral agencies).
 
3
World Health Organization (WHO). The Global Health Expenditure Database [Internet]. Geneva: WHO; 2023. Available from: https://​apps.​who.​int/​nha/​database/​Home/​Index/​en (accessed 26 Sep 2023).
 
4
World Health Organization (WHO). Methodology for the update of the global health expenditure database 2020–2022: technical note [Internet]. Geneva: WHO; 2023. Available from: https://​iris.​who.​int/​handle/​10665/​365909 (accessed 26 Sep 2023).
 
5
World Health Organization (WHO). Global spending on health 2020: Weathering the storm [Internet]. Geneva: WHO; 2020. Available from: https://​apps.​who.​int/​iris/​handle/​10665/​337859 (accessed 26 Sep 2023).
 
6
World Health Organization (WHO). Global spending on health: rising to the pandemic’s challenges [Internet]. Geneva: WHO; 2022. Available from: https://​www.​who.​int/​publications/​i/​item/​9789240064911 (accessed 26 Sep 2023).
 
7
Middle-income countries include lower-middle and upper-middle–income countries, as per the World Bank 2019 classification of income groups. A 34th country, Seychelles, is not included as it was the only high-income country with available disaggregated spending amounts on HCW expenditure.
 
8
The Democratic Republic of the Congo, which is a member of both ECCAS and SADC, is counted as ECCAS.
 
9
Throughout the article, unless otherwise indicated, ECOWAS excludes WAEMU member countries.
 
10
The reference year for global and regional average per capita health expenditure is 2019, using the 2021 GHED update.
 
11
US$ 15 across the 13 ECOWAS countries with disaggregated data available; WAEMU countries included.
 
12
“Government” includes funding sources from government resources (general taxation) and contributions to mandatory health insurance schemes. “External aid” refers to development partner funds handled by non-profit entities or channeled through governments. “Private sources” refer to domestic funds, e.g., out-of-pocket payments and contributions to voluntary health insurance schemes, i.a.
 
13
Proxied by government expenditure on health as a share of general government expenditure, as on the x axis of Fig. 4.
 
14
Dark and light green, respectively, for ECOWAS and WAEMU countries.
 
15
Burkina Faso, Cabo Verde, Ghana, and Niger.
 
16
High expenditure on HCW remuneration as a share of government expenditure on health, but with relatively lower government priority on health (government expenditure on health as a share of general government expenditure).
 
17
Though, in their paper “Paying for needed health workers for the SDGs: an analysis of fiscal and financial space” In: Health employment and economic growth: an evidence base. Geneva: World Health Organization, 2017, also available, Lauer et al. made a crude attempt to express wage bill as a proportion of public spending on health for 136 countries, and their estimate was 57%.
 
18
Stable countries: Botswana, Cabo Verde, Gabon, Ghana, and Namibia. Warning countries: Côte d’Ivoire, Comoros, Gambia, Eswatini, Liberia, Malawi, São Tomé and Príncipe, Senegal, Sierra Leone, South Africa, Togo, and Zambia. Alert countries: Burkina Faso, Burundi, Chad, Central African Republic, Democratic Republic of the Congo, Guinea, Mali, Niger, Nigeria, and Zimbabwe. Five other countries remain unclassified.
 
19
One country with available HCW-disaggregated expenditure data could not be included here because more than 30% of its health expenditure was “unclassified:” for > 30% of this country’s expenditure, it was unclear whether it was on HCW, pharmaceuticals, or other type of inputs—potentially underestimating the HCW amounts reported.
 
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Metadata
Title
Health expenditure: how much is spent on health and care worker remuneration? An analysis of 33 low- and middle-income African countries
Authors
Hapsatou Toure
Maria Aranguren Garcia
Juana Paola Bustamante Izquierdo
Seydou Coulibaly
Benjamin Nganda
Pascal Zurn
Publication date
01-12-2023
Publisher
BioMed Central
Published in
Human Resources for Health / Issue 1/2023
Electronic ISSN: 1478-4491
DOI
https://doi.org/10.1186/s12960-023-00872-y

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