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ß The Author 2006, Published by Oxford University Press in association with The London School of Hygiene and Tropical Medicine. All rights reserved.
doi:10.1093/heapol/czl017 Advance Access publication 25 May 2006




Incoherent policies on universal coverage of health
insurance and promotion of international trade in
health services in Thailand
CHA-AIM PACHANEE AND SUWIT WIBULPOLPRASERT
Ministry of Public Health, Nonthaburi, Thailand

    The Thai government has implemented universal coverage of health insurance since October 2001.
    Universal access to antiretroviral (ARV) drugs has also been included since October 2003. These two
    policies have greatly increased the demand for health services and human resources for health,
    particularly among public health care providers.

    After the 1997 economic crisis, private health care providers, with the support of the government,
    embarked on new marketing strategies targeted at attracting foreign patients. Consequently,
    increasing numbers of foreign patients are visiting Thailand to seek medical care. In addition,
    the economic recovery since 2001 has greatly increased the demand for private health services among
    the Thai population.

    The increasing demand and much higher financial incentives from urban private providers have
    attracted health personnel, particularly medical doctors, from rural public health care facilities.
    Responding to this increasing demand and internal brain drain, in mid-2004 the Thai government
    approved the increased production of medical doctors by 10 678 in the following 15 years. Many
    additional financial incentives have also been applied. However, the immediate shortage of human
    resources needs to be addressed competently and urgently.

    Equity in health care access under this situation of competing demands from dual track policies is a
    challenge to policy makers and analysts. This paper summarizes the situation and trends as well as the
    responses by the Thai government. Both supply and demand side responses are described, and some
    solutions to restore equity in health care access are proposed.

Key words: universal access, health insurance, private health providers, trade in health services, human resources for
health, brain drain, health care equity




Introduction                                                                respectively. Public institutes produce more than 95% of
The Thai health care system is pluralistic and dominated                    human resources, under a heavily publicly subsidized
by the public sector, particularly in rural areas where more                system.
than two-thirds of the population lives. In 2003, there
were 9765 rural health centres covering all sub-districts;                  One of the main problems of human resources for health
725 community hospitals (10–120 beds) covering 91.2% of                     in Thailand is the imbalanced distribution in terms of both
all districts; 74 general hospitals; 25 regional hospitals; 57              geographical areas and specialization. In 2001, the doctor
military hospitals; 60 specialized hospitals; and 10 medical                density in the capital, Bangkok, was 10 times the density
school hospitals. In total, these public facilities provided                of the poorest Northeastern region. In terms of specialty,
99 590 beds. In the private sector, there were 346 private                  more than 72.5% of medical doctors were classified within
hospitals providing 34 863 beds, which accounted for                        one of the 45 medical specialties (Wibulpolprasert 2002).
25.9% of the total beds in the country. In addition,                        Several strategies, on both the supply and the demand
there are 14 935 private clinics, mainly in the cities                      sides, have been used to improve the distribution of
(Wibulpolprasert 2002).                                                     human resources for health, with some degree of success.

According to the 2000 census (Thamarangsi 2004), the                        Health equity has long been a global and national health
country has 22 435 medical doctors, 119 651 nurses, 6966                    target since the era of Health for All and primary health
dentists, 10 354 pharmacists and 31 931 rural health                        care in the late 1970s. In 2001, the new government
workers. The proportion of doctors, nurses, dentists and                    embarked on a new policy of universal coverage of
pharmacists in the public sector is 71, 87, 59 and 56%,                     health insurance. Through this, 30% of the population
Dual track policies on health services in Thailand                                        311

(an additional 18 million people) now have access to                  drain is a serious constraint for national health system
essential care without financial barriers. This policy has            development (Whelan et al. 2004).
greatly increased the demand for health care.
                                                                      This paper attempts to review the situation and project the
The recent economic recovery after the 1997 economic                  trend of possible implications of the dual track policies
crisis has also stimulated demand for health care. And,               on health services. It also proposes possible additional
at more or less the same time, the private health sector,             actions to protect health equity. It was prepared through
supported by the government, started intensive marketing              review of relevant documents on health services utilization
to attract more foreign patients—in order to promote                  behaviours from the National Health and Welfare
the international trade in health services as a means                 Surveys, surveys of foreign patients from the Ministry of
of stimulating economic growth. The initial success                   Commerce and other relevant local and international
of this policy increased the demand for health care by                documents. Through the existing information, relevant
foreign patients.                                                     assumptions are employed to project future trends and
                                                                      implications.
In the year 2000, the size of the global health services
sector was estimated to be US$300 billion. The
estimated figure for 2005 is US$400 billion (Chanda
                                                                      The policy of universal coverage of health
2001). Most of this is for domestic markets. The value of
global health services exports in 2000 was estimated at               insurance
US$14 billion, less than 5% of the global market.                     Since 1965, the Thai government has tried to gradually
However, this may grow rapidly as information and                     increase the coverage of health insurance, aiming at more
communication technology make it easier—for example,                  health care equity and the reduction of catastrophic
through e-health—and as health systems are liberalized                illnesses. Health insurance coverage gradually increased
and entry barriers are lowered (Woodward et al. 2002).                from 33.4% in early 1991 to 71.0% in 2001 (Table 1).
In Thailand, more than 60% of the Thai GDP in 2003                    Yet there were still around 20 million people without
came from exports (Wibulpolprasert et al. 2004). Thus,                any kind of health insurance. The Thai Rak Thai party
every government supports the export of goods and                     proposed, in its political campaign in late 2000, to embark
services to stimulate economic growth. The health sector              on the universal coverage of health insurance if it was
has been targeted recently as one of the potential export             elected to government. This campaign played an impor-
services. The Thai government is therefore aggressively               tant role in its success in the 2001 election. In April 2001
supporting more international trade in health services                the policy was initiated in six provinces, then expanded to
through improving quality standards, road shows, invest-              21 provinces in July 2001, and has covered every province
ment incentives and negotiation with trade partners.                  since October 2001.

However, there may be several possible implications of the            Three main health insurance schemes now cover the entire
international trade in health services, particularly related          population (Table 1): the Civil Servant Medical Benefit
to social equity (Chanda 2001). First, consumption of                 Scheme (CSMBS); the Social Security Scheme (SSS); and
health services by foreigners can result in a dual market             the universal coverage scheme (30 Baht scheme).
structure, which can divert scarce health resources from
the poor. Secondly, although foreign commercial presence
                                                                      The Civil Servant Medical Benefit Scheme (CSMBS)
can reduce pressure on public resources, it can also lead to
a tiered health care system, with a flow of providers from            The CSMBS covers civil servants, public employees and
the rural public to the urban private health sector. Finally,         their dependants. The scheme is paid totally from the
although movement of health personnel from developing                 general tax revenue based on a fee-for-services retro-
to developed countries may create opportunities for                   spective reimbursement system. Public facilities are the
remittances to developing countries, the resultant brain              main providers under this scheme.


Table 1. Coverage of health insurance (%), 1991–2003

Health insurance scheme                        1991                        1996                        2001                     2003

Universal coverage                              –                           –                           –                       74.7
Social welfare                                 12.7                        12.6                        32.4                      –
Civil servants (CSMBS)                         15.3                        10.2                         8.5                      8.9
Social security                                 –                           5.6                         7.2                      9.6
Voluntary health card                           1.4                        15.3                        20.8                      –
Private health insurance                        4.0                         1.8                         2.1                      1.7
Total insured                                  33.4                        45.5                        71.0                     94.9
Uninsured                                      66.6                        54.5                        29.0                      5.1

Source: Reports of Health and Welfare Surveys 1991, 1996, 2001 and 2003 (National Statistical Office 1991, 1996, 2001, 2003).
312                                            C Pachanee and S Wibulpolprasert

The Social Security Scheme (SSS)                                      hospitality have contributed to a rapid influx of foreign
                                                                      patients.
The SSS is a tripartite system contributed to by employers,
employees and the government on an equal share basis.                 Realizing the potential, in early 2003 the government
It covers private employees and temporary public employ-              approved the policy titled ‘Thailand: Centre of Excellent
ees. Public and private facilities have approximately equal           Health Care of Asia’, targeted to achieve 850 000 foreign
share of the insurees. This scheme pays the providers by              patients in 2004. An income of US$500 million was
the contract capitation system.                                       expected for 2004, rising to US$1 billion in 2008 (Bureau
                                                                      of Policy and Strategy, Ministry of Public Health 2004).
Universal coverage scheme (30 Baht scheme)                            The Ministry of Public Health together with the Ministry
                                                                      of Commerce, in collaboration with the Private Hospitals
The scheme of universal coverage of health insurance was
implemented fully in October 2001, by combining the                   Association, are the main implementers of this policy.
previous social welfare health services and the voluntary             Many road shows have been carried out in targeted
health card scheme, and further expands the coverage to               countries to publicise it. The Board of Investment (BOI)
18 million more people. This scheme covers 74.7% of the               provides tax incentives to local and foreign investors for
population. It is financed solely from the general tax                investment in new health facilities aimed at servicing
revenue. Public hospitals are the main providers; they                foreign patients. The Ministry of Public Health has
cover more than 95% of the insurees. About 80 private                 published and disseminated a list of private hospitals
hospitals also joined the system and register around 4% of            that have the capacity to cater for foreign patients.
the beneficiaries.                                                    Regional trade agreements, for example, the ASEAN
                                                                      Framework Agreement on Services (AFAS), also agree on
Since October 2003, the government has embarked on                    the facilitation of movement of patients and providers
universal access to antiretroviral drugs (ARVs). Up until             (Chalamwong and Tansaewee 2005).
May 2005, more than 50 000 patients have been registered
into the system.                                                      Further, the economic recovery since 2001 has resulted in
                                                                      increasing domestic demand within the private sector,
These two policies have rapidly increased the demand for              and resulted in the rapid revitalization of private health
health services in the public sector. The overall number              facilities.
of outpatients in public hospitals in 2003 increased by
40–50%.
                                                                      Increasing demands and competition
                                                                      for limited human resources
Policy on promotion of trade
in health services                                                    Demand from the Thai population
Since the late 1980s, the government has promoted trade               During the period of economic crisis between 1996 and
in health services through tax incentives for investment in           2001, outpatient visits to health care facilities decreased
private hospitals. This policy, coupled with the economic             from 2.87 to 2.84 visits/capita/year (Vasavid et al. 2004).
boom during 1989–96, has resulted in the mushrooming                  There was also a shift from using private facilities to
of urban private hospitals. Between 1987 and 1997, 190                public facilities. The proportion of people using public
hospitals were established using this tax incentive                   facilities increased from 25.4% to 48.45%. The proportion
(Board of Investment of Thailand 2004). Twelve private                using private hospitals and clinics decreased from
hospitals are now listed in the Stock Exchange                        26.9% to 17.7% (National Statistical Office 1996, 2001)
of Thailand (2004). After the 1997 economic crisis,                   (Table 2).
investment in private hospitals reduced dramatically
(Buddhasri et al. 2003). Some private hospitals started               The Health and Welfare Survey of 2003, 2 years after
new marketing strategies based on packaged services                   implementing the universal coverage policy and a time
and targeted more towards foreign patients. The relatively            of rapid economic recovery, found outpatient visits had
competitive price, high quality services and excellent                increased to 3.62 visits/capita/year (National Statistical

Table 2. Health-care-seeking behaviours (%), 1991–2003

Health-care-seeking behaviour                      1991                      1996                       2001                     2003

Not seeking health care                            16.75                      7.10                       5.10                     5.70
Traditional healing                                 5.25                      3.40                       2.35                     2.75
Self-medication                                    37.75                     37.20                      25.75                    22.50
Health centre (public)                              9.85                     14.05                      13.90                    17.70
Public hospital                                    12.95                     11.35                      34.55                    32.30
Private clinic/hospital                            17.45                     26.90                      17.70                    22.45

Sources: Reports of Health and Welfare Surveys 1991, 1996, 2001 and 2003 (National Statistical Office 1991, 1996, 2001, 2003).
Dual track policies on health services in Thailand                                               313

Table 3. Projected demand for medical doctors by Thai patients, by moving average method

Year         Visits/capita/year               Population          Total visits (OP equiv.)        No. of additional doctors required
                                              (million)           requiring a doctor
             OP              IP                                   (million)                       Total                  In private sector

1996         2.87a           0.066a             –                       –                             –                      –
2001         2.84a           0.076a            62.0               198.65–208.07                       –                      –
2003         3.62a           0.086a            63.3               247.50–258.39                   2443–2795              1002–1146
2005         3.87b           0.092b            64.5               270.18–282.07                   1134–1315               465–539
2007         4.29b           0.099b            65.7               302.10–315.15                   1596–1838               654–753
2009         4.77b           0.106b            67.0               338.40–352.65                   1815–2083               744–854
2011         5.16b           0.113b            68.2               371.17–386.66                   1639–1889               672–775
2013         5.59b           0.120b            69.4               407.78–424.55                   1830–2105               750–863
2015         6.03b           0.127b            70.7               445.59–463.70                   1891–2175               775–892

a
 Data from Health and Welfare Survey by the National Statistical Office.
b
 Projecting rate of future increase in outpatient (OP) and inpatient (IP) visits by using average rate in the previous three biennial periods,
giving equal weight to each period
Conditions for projection:
(1) Population growth rate ¼ 1%/year (National Statistical Office 2004);
(2) 70% of OP and 100% IP require medical doctor services (Wibulpolprasert 2002);
(3) One IP visit is equivalent to the workload of 16–18 OP visits (Wibulpolprasert 2002);
(4) One medical doctor services 18 000–20 000 OP equivalent visits/year (Wibulpolprasert 2002);
(5) 41% of patients visit private hospitals/clinics (Table 2).



Office 2003). The use of public facilities had increased to              hospitals which were known to cater to foreign patients.
50.0%. One factor contributing to this increase is the                   Only seven hospitals responded, but it was deduced from
universal coverage of health insurance, where most people                these that there were 470 000 foreign patients in 2001,
are registered with the public facilities. Vasavid et al.                a 38% increase from 2000 (Department of Export
(2004) point out that one objective of the universal                     Promotion, Ministry of Commerce 2002). The figure
coverage scheme is utilizing health services at the primary              increased to 630 000 in 2002, a 34% expansion from 2001
level at public facilities close to home. This objective is              (Division of Service Business 2003). In 2003, there were
thus accomplished due to the increase in visits to public                973 532 foreign patients utilizing health care services in
health care facilities. However, this increased demand for               Thailand, a 54.5% increase from the previous year.
health services resulted in greater requirements for human               These patients brought in revenue of US$660 million.
resources for health. Table 3 shows the increase in total                Thailand has replaced Singapore as the Asian country
demand for doctors projected by the moving average                       with the highest number of foreign patients (Department
method. Another scenario applying average growth                         of Trade Negotiation, Ministry of Commerce 2004).
between 1996 and 2001, of 0.11 visit/capita/year, results                Patients come mainly from Japan, USA, Taiwan, UK
in a less marked increase in demand. For example, using                  and Australia, respectively. There is also a rapidly
the former method, the additional demand for doctors                     increasing trend of patients coming from the Middle
between 2013–15 is 1891–2175 (Table 3) compared with                     East and other Asian countries. Empirical evidence from
1252–1457 using the latter methodology. About 60% of                     the Department of Export Promotion found that 60% of
this demand is in the public sector.                                     these patients are expatriates in Thailand or neighbouring
                                                                         countries, 10% are tourists who happened to be ill,
                                                                         and the remaining 30% came specifically for the health
Demand for private providers from trade in health services               care services.
(1) Demand from Thai patients
                                                                         The increasing demand for health care services and the
The economic recovery since 2001 and further rapid                       demand for doctors by foreign patients can be projected,
growth have resulted in increasing demand on private                     as shown in Table 4. It is calculated using the regressive
providers among the Thai people. Table 2 shows that the                  increasing rates of foreign patients. With these increasing
proportion of visits to private providers increased from                 rates, the number of additional medical doctors needed
17.7% in 2001 to 22.4% in 2003. The demand for doctors                   for foreign patients in 2015 will be around 176–303,
in the private sector to provide health services to Thai                 accounting for 9–12% of additional medical doctors
patients is shown in Table 3, and accounts for about 41%                 required within the health system and 23–34% of those
of the total demand.                                                     required by the private health sector to service the
                                                                         increasing demand from Thais.
(2) Demand from foreign patients
                                                                         Another three scenarios with different constant growth
In 2001, the Department of Export Promotion in the                       rates, of 10–12%, 14–16% and 18–20%, were also
Ministry of Commerce carried out a survey of 20 private                  projected (figures not shown here). Using these rates,
314                                            C Pachanee and S Wibulpolprasert

Table 4. Demand for medical doctors by foreign patients

Year       Foreign patient visits             Total visits (OP equiv.)       Additional doctors required by foreign patients
           (million)                          requiring a doctor
                                              (million)
           OP               IP                                               Total         % of those required        % of those required
                                                                                           in private sector          by whole system

2001          0.61a            0.030           1.22                             –            –                         –
2002          0.82a            0.041           1.64                             –            –                         –
2003          1.26a            0.063           2.53                          109–131        11                         4
2005       1.76–1.82b       0.088–0.091        3.52–3.64                      83–111       18–21                       7
2007       2.45–2.62b       0.122–0.131        4.90–5.25                     115–160       18–21                      7–8
2009       3.18–3.53c       0.159–0.176        6.37–7.06                     123–181       17–21                      6–8
2011       4.14–4.75c       0.207–0.237        8.89–9.50                     159–244       24–31                      9–11
2013       5.01–5.96d       0.250–0.298       10.03–11.92                    145–242       19–28                      7–10
2015       6.06–7.48d       0.303–0.373       12.13–14.95                    176–303       23–34                      9–12

OP ¼ outpatient; IP ¼ inpatient.
a
  Figure from survey by the Ministry of Commerce plus 30% of the under-surveyed.
b
  Estimation with the assumption of increase at the rate of 18–20% per year.
c
  Estimation with the assumption of increase at the rate of 14–16% per year.
d
  Estimation with the assumption of increase at the rate of 10–12% per year
Conditions for projection:
(1) An IP visit is equal to 5% of an OP visit and 20 times the OP workload;
(2) Every patient requires a medical doctor;
(3) One medical doctor provides services to 10 000–12 000 OP visits/year (Wibulpolprasert 2002).



the additional demand for doctors for foreign patients                   total demand. The figures for 2015 increase to 23–34%
during 2013–2015 may vary from 15–77% of the                             and 9–12%, respectively. With a constant high growth
additional demand in the private sector arising from the                 rate, the figures for 2015 may be 56–77% of the additional
increasing demand of Thais. This variation depends on                    demand in the private sector and 19–24% of the
how successful the trade in services will be.                            additional total demand of the country, respectively.
                                                                         Therefore, international trade in health services is not the
                                                                         major contributing factor to the current internal brain
Internal brain drain as a result                                         drain. The increased demand from Thai patients in
of the competing demands                                                 the private sector is more influential. Nevertheless, the
                                                                         number of foreign patients is predicted to increase at a
Both increasing demand and more financial incentives in                  faster rate than the number of Thai patients. Thus, foreign
the private sector have resulted in the outflow of human                 patients will form an increasing proportion of the
resources, particularly physicians, from rural public                    additional demand for doctors in the future.
facilities under the Ministry of Public Health to urban
private hospitals. According to Pannarunothai et al.
(1998), the income gap between private and public
health personnel is highest among doctors (a difference                  Responses from the Thai Government
of up to 6–11-fold in 1997), hence the highest outflow. The              In the past, the Thai government has implemented several
flow fluctuates with the economic situation. It improved                 measures, on both the supply and the demand sides, to
during the period of economic recession (1980–88) but                    solve the problems of internal brain drain and inequitable
worsened during the economic boom (1988–97) due to                       distribution of human resources. Additional responses
rapid expansion of large urban private hospitals. After the              have been implemented in the past few years.
economic crisis in 1997 the situation improved again.
Since 2001, because of the improving economy and the
influx of foreign patients, the human resources distribu-                Supply-side interventions
tion has worsened (Wibulpolprasert and Pengpaiboon                       Increase supply through increasing production, hiring
2003). The fluctuation in the flow of doctors is illustrated             of retired doctors and import of foreign doctors
by the figures for doctors employed by the Ministry of
Public Health, as shown in Figure 1 (Ministry of Public                  In response to rapidly increasing demand in the mid-
Health 2004).                                                            1990s, the production of physicians was increased by
                                                                         600 per year during 1993–95. Furthermore, the recent
However, the calculated additional demand for physicians                 increasing demand prompted the government, in mid-
by foreign patients in 2003 (as shown in Table 4) is only                2004, to approve a project to accept an additional 10 678
around 11% of the additional demand (domestic and                        medical students during 2005–14 (The Secretariat of the
foreign) in the private sector, and 4% of the additional                 Cabinet 2004). Figure 2 shows the increasing and
Dual track policies on health services in Thailand                                                                                       315


                                                                                          Percentage of Doctor Loss
                             80
                                                                                                                                                                                        76.1
                             70

                             60                                                  60.6                                              Economic recovery                          61.3
                                                                                                54.7                               & influx of foreign
                             50                                                                                                    patients
                   Percent

                                                                  45.1
                             40
                                                                                                              33.6
                             30
                                                                                                                                                           23.1
                             20
                                                                                                                             17.8
                                                                                 Economic                                                   12.1
                             10                 8                                  crisis
                                             Economic
                              0
                                               boom
                                        1994   1995   1996                               1997          1998          1999           2000            2001              2002            2003
                                                                                                              Year

Figure 1. Percentage net loss of medical doctors employed by the Ministry of Public Health compared with new recruits, 1994–2003
Source: Bureau of Central Administration, Ministry of Public Health (2004).




                             2500


                             2000


                             1500
                   Number




                             1000


                              500


                                  0
                                      1937
                                             1941
                                                    1945
                                                           1949
                                                                   1953
                                                                          1957
                                                                                  1961
                                                                                         1965
                                                                                                1969
                                                                                                       1973
                                                                                                              1977
                                                                                                                     1981
                                                                                                                            1985
                                                                                                                                   1989
                                                                                                                                          1993
                                                                                                                                                 1997
                                                                                                                                                        2001
                                                                                                                                                               2005
                                                                                                                                                                       2009
                                                                                                                                                                               2013
                                                                                                                                                                                       2017




Figure 2. Output of medical doctors in Thailand
Sources: Thai Medical Council; Collaborative Project to Increase Production of Rural Doctors; Bureau of Tertiary Education Policy
and Planning, Office of Tertiary Education Commission.




projected output of medical graduates. However, the first                                                     educated in a local university and local hospitals, and
batch of these new medical students will graduate in 2011,                                                    retained to work in their districts.
which will not be in time to solve the immediate demand.
In the longer term, the output of new medical graduates                                                       Due to the lag time in the production of new medical
seems to be sufficient to respond to the projected                                                            graduates, a measure used by some hospitals, particularly
requirements. In order to ensure equity of education,                                                         urban public hospitals, to help to address the immediate
longer rural retention and local acquaintance, the addi-                                                      shortage of medical doctors is to hire retired physicians to
tional new medical students will be recruited from the                                                        work part-time.
rural provinces/districts and trained in provincial hospi-
tals. For example, in mid-2004 the cabinet approved the                                                       In response to the increasing demand in the private sector,
‘One District, One Doctor Project’. Medical students will                                                     there was a proposal from the Private Hospitals
be recruited from high-school graduates in rural districts,                                                   Association to import foreign doctors to serve foreign
316                                       C Pachanee and S Wibulpolprasert

patients, a proposal not well received by the medical         staff. This effort has been so successful that the propor-
community. However, since 1986, the Thai medical              tion of patients visiting health centres increased from
licensing examination has been carried out in the Thai        13.9% in 2001 to 17.7% in 2003 (Table 2).
language instead of English. According to the Medical
Council of Thailand (cited in Wibulpolprasert et al. 2004),
since then less than 10 additional foreign medical            Discussion and conclusion
graduates have been licensed to practice in Thailand.
                                                              Two-thirds of Thailand’s gross domestic product (GDP)
Compulsory public service and provision of financial          comes from the export of goods and services. Tourism,
incentives                                                    including health tourism, accounted for almost 8% of
                                                              GDP in 2000 (Wibulpolprasert 2002). With the high
In 1967, the government decided to enforce a 3-year           potential and competitive advantages of the Thai health
compulsory public service for new medical graduates,          care system, the export of health services is being strongly
in response to the rapid external brain drain. More than      promoted to gain more foreign currency and boost
two-thirds of the new doctors were placed to work in rural    economic growth. Accordingly, the trend of rising
areas (Wibulpolprasert and Pengpaiboon 2003).                 demand for the health care services and human resources
                                                              in the private sector arising from this policy will play an
Since 1975, the government has started many financial         increasing role in the near future. Increasing international
incentives for rural doctors, including hardship allow-       trade in health services, particularly the movement of
ances, no-private-practice allowances, overtime payments      patients or Mode 2 service trade, occurs beyond the
and non-official-hours special service allowances. These      existing multilateral and bilateral trade agreements
financial incentives have been allowed to increase by up to   (Wibulpolprasert et al. 2004). Nevertheless, the internal
20% after the implementation of the universal coverage        economic recovery and trend of further economic growth
scheme. In response to the severe internal brain drain, the   have major roles in the current increasing demand on the
government approved additional financial incentives in        private health sector. Although demand from foreign
2004 and 2005. A new medical graduate working in the          patients to the private health sector is increasing at a rate
most remote rural district can now earn up to US$1500         higher than that from the domestic population, the latter
per month, approximately equal to the salary of a senior      still have the greater share.
doctor in a central department who has 25 years of
working experience.                                           The universal coverage policy is one of the most popular
                                                              policies of the government. Every public poll between
Non-financial incentives                                      2002–04 conducted by National Health Security Office
                                                              and ABAC-KSC Internet Poll Research Bureau (2004)
Some non-financial incentives have also been imple-           shows more than 70% public satisfaction. Thus, the policy
mented. For example, the physicians in a rural district       will continue with more and more benefits added. This
hospital may have career status equivalent to the             will definitely increase the demand for health care, in
Deputy Director-General of a Central Department,              addition to the aging population, the improving economy,
i.e. PC (position classification) level 9.1 More opportu-     more urbanization and better education. Consequently,
nities for continuing education for rural health personnel    the demand for health care and associated human
are also provided. Social recognition such as an annual       resources by the Thai people will continue to increase,
award for the outstanding rural health personnel is           although at a lower rate than that by foreign patients.
another important strategy implemented.
                                                              Thus, the competition for limited human resources for
Demand-side interventions                                     health between the trade in health services and the
                                                              universal coverage policy will continue in the future, as
Health promotion campaigns                                    will the trend of internal brain drain.
Intensive health promotion campaigns and strategies have
been promoted together with the implementation of             It is evident that since the Thai government started
universal coverage. The main targets include increased        promoting the private health sector in the 1980s, there
physical activity, tobacco control, control of alcoholic      have been relatively inadequate regulations and strategies
beverages, diet, and rest and relaxation. A national          to reduce any harmful effects, particularly on health
‘Healthy Thailand’ project was approved in 2004,              service inequity. There is thus an urgent need to revisit
aiming at a healthier population with subsequently less       these policies and to establish effective strategies and
use of medical care services.                                 measures to ensure equitable access to quality health
                                                              services. Such measures may include supporting innova-
                                                              tive models to involve the private sector in the provision of
Promotion of primary care
                                                              essential health services to the urban poor and rural
One of the main targets of universal coverage is to           population; to allow tax incentives only to those private
strengthen near-home primary care services. Primary care      providers who also provide public health services; and
units (mainly non-physician manned health centres)            greater regulation of price and quality of private health
have been upgraded and manned with more nursing               services.
Dual track policies on health services in Thailand                                              317

Table 5. Top five factors contributing to the resignation of doctors in the Ministry of Public Health, in 2003

Rank                General practitioners                                                    Specialists

                    Factor                                               %                   Factor                                   %

1                   Opportunity for continuing education                 31.84               Administration of system                 17.97
2                   Workload                                             14.04               Income                                   16.99
3                   Distance from home                                   11.98               Workload                                 13.40
4                   Income                                                9.36               Hospital administration                  12.75
5                   Hospital administration                               6.55               Quality of life                           9.48

Source: Thamarangsi (2003).



Although the competing demand for limited human                        References
resources between the universal coverage scheme and
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                                                                       Department of Trade Negotiation, Ministry of Commerce. 2004.
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in 2001 which proved to be very successful. However,                       Nonthaburi, Thailand: Ministry of Commerce.
due to the desire to centralize the power structure,                   Division of Service Business. 2003. Hospital service business.
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more non-financial incentives need to be advocated,                        Ministry of Commerce.
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       1
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rising to PC level 11. PC level 9 is the level for Deputy Director         at:       [http://www.nso.go.th/nso/data/data23/stat_23/toc_1/
General of a Central Department or the deputy governor.                    1.1.3.4-1.xls].
318                                               C Pachanee and S Wibulpolprasert

Pannarunothai S, Tharathep C, Thamthataree J et al. 1998.                Biographies
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    business opportunities for the autonomous hospitals. Nonthaburi,     Cha-aim Pachanee has been working at the International Health
    Thailand: Health Systems Research Institute.                         Office, Bureau of Policy and Strategy, Ministry of Public Health,
Stock Exchange of Thailand. 2004. Investment information [online].       Thailand, for 5 years after receiving her undergraduate degree in
    Bangkok: Stock Exchange of Thailand. Accessed August 2004            Public Health (Environmental Health) and Master of International
    at: [http://www.set.or.th/static/market/market_u7.html].             Health. Before joining the Ministry of Public Health, she was
Thamarangsi T. 2003. The study on resignation of medical doctors         a research assistant at the Thailand Environment Institute from
    in Thailand. A Research Report. Nonthaburi, Thailand:                1997–98. Her main interests are in international health, international
    International Health Policy Programme.                               trade in health services, human resources for health, health systems
Thamarangsi T. 2004. Analysis of information an human                    and health policies. Ms Pachanee is currently studying for a PhD
    resources for health from 1990 and 2000 census. A research           in Epidemiology and Population Health at the National Centre for
    report. Nonthaburi, Thailand: International Health Policy            Epidemiology and Population Health, the Australian National
    Programme.                                                           University, Canberra, Australia.
The Secretariat of the Cabinet. 2004. Cabinet meetings and results
    [online]. Accessed August 2004 at: [http://www.cabinet.thaigov.      Suwit Wibulpolprasert, MD, is a general practitioner as well as a
    go.th/cc_main21.htm].                                                public health man. His main focus is on health policy and planning
Vasavid C, Tangcharoensathien V, Tisayaticom K et al. 2004.              and international health. He has been actively involved in research
    Health and welfare of Thai population after universal health         and development in the area of human resources for health, health
    care coverage (UC) – Part 1: Illness, utilisation compliance of      economics and health care financing, international trade and health,
    health care services of UC members. Journal of Health Science        health promotion, and control of food and drugs. Currently, he is a
    13: 428–39.                                                          board member of the Health Systems Research Institute, and the
Whelan AM, Arkles RS, Dewdney J et al. 2004. International               evaluation board member of the Thailand Research Fund. During
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    challenges for developed nations. Harvard Health Policy              Health responsible for international health and health policy.
    Review 5: 2.                                                         From mid-2001 to March 2004, he represented Thailand and the
Wibulpolprasert S (ed). 2002. Thailand health profile 1999–2000.         South-east Asia region as the member of the governing board of the
    Bangkok: Express Transportation Organization Printing                Global Fund to Fight AIDS, Tuberculosis, and Malaria (GF).
    House.                                                               From November 2003 to 2006, Dr Suwit served as the President
Wibulpolprasert S, Pengpaiboon P. 2003. Integrated strategies            of the Intergovernmental Forum on Chemical Safety, while he is
    to tackle inequitable distribution of doctors in Thailand:           now the Senior Advisor on Health Economics, Ministry of Public
    four decades of experience. International Journal of Human           Health, Thailand. [Address: 5th floor, 1st building, Office of
    Resources for Health 1: 12.                                          Permanent Secretary, Ministry of Public Health, Tiwanond Road,
Wibulpolprasert S, Pachanee C, Pitayarangsarit S et al. 2004.            Muang District, Nonthaburi 11000, Thailand. Tel: 66–2–5901122;
    International service trade and its implications on human            fax: 66–2–5918513; E-mail: suwit@health.moph.go.th]
    resources for health: a case study of Thailand. Human
    Resources for Health 2: 10.                                          Correspondence: Ms Cha-aim Pachanee, International Health Office,
Woodward D, Drager N, Beaglehole R et al. 2002. Globalization,           Bureau of Policy and strategy, Office of Permanent Secretary,
    global public goods, and health. In: Drager N, Vieira C (eds).       Ministry of Public Health, Tiwanond Road, Nonthaburi 11000,
    Trade in health services: global regional and country perspective.   Thailand. Tel: þ61 2 6125 5611; Fax: þ61 2 6125 0740; E-mail:
    Washington, DC: Pan American Health Organization, pp. 3–11.          chaaim@health.moph.go.th and Chaaim.pachanee@anu.edu.au.

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Incoherent policies pachanee and wibulpolprasert

  • 1. ß The Author 2006, Published by Oxford University Press in association with The London School of Hygiene and Tropical Medicine. All rights reserved. doi:10.1093/heapol/czl017 Advance Access publication 25 May 2006 Incoherent policies on universal coverage of health insurance and promotion of international trade in health services in Thailand CHA-AIM PACHANEE AND SUWIT WIBULPOLPRASERT Ministry of Public Health, Nonthaburi, Thailand The Thai government has implemented universal coverage of health insurance since October 2001. Universal access to antiretroviral (ARV) drugs has also been included since October 2003. These two policies have greatly increased the demand for health services and human resources for health, particularly among public health care providers. After the 1997 economic crisis, private health care providers, with the support of the government, embarked on new marketing strategies targeted at attracting foreign patients. Consequently, increasing numbers of foreign patients are visiting Thailand to seek medical care. In addition, the economic recovery since 2001 has greatly increased the demand for private health services among the Thai population. The increasing demand and much higher financial incentives from urban private providers have attracted health personnel, particularly medical doctors, from rural public health care facilities. Responding to this increasing demand and internal brain drain, in mid-2004 the Thai government approved the increased production of medical doctors by 10 678 in the following 15 years. Many additional financial incentives have also been applied. However, the immediate shortage of human resources needs to be addressed competently and urgently. Equity in health care access under this situation of competing demands from dual track policies is a challenge to policy makers and analysts. This paper summarizes the situation and trends as well as the responses by the Thai government. Both supply and demand side responses are described, and some solutions to restore equity in health care access are proposed. Key words: universal access, health insurance, private health providers, trade in health services, human resources for health, brain drain, health care equity Introduction respectively. Public institutes produce more than 95% of The Thai health care system is pluralistic and dominated human resources, under a heavily publicly subsidized by the public sector, particularly in rural areas where more system. than two-thirds of the population lives. In 2003, there were 9765 rural health centres covering all sub-districts; One of the main problems of human resources for health 725 community hospitals (10–120 beds) covering 91.2% of in Thailand is the imbalanced distribution in terms of both all districts; 74 general hospitals; 25 regional hospitals; 57 geographical areas and specialization. In 2001, the doctor military hospitals; 60 specialized hospitals; and 10 medical density in the capital, Bangkok, was 10 times the density school hospitals. In total, these public facilities provided of the poorest Northeastern region. In terms of specialty, 99 590 beds. In the private sector, there were 346 private more than 72.5% of medical doctors were classified within hospitals providing 34 863 beds, which accounted for one of the 45 medical specialties (Wibulpolprasert 2002). 25.9% of the total beds in the country. In addition, Several strategies, on both the supply and the demand there are 14 935 private clinics, mainly in the cities sides, have been used to improve the distribution of (Wibulpolprasert 2002). human resources for health, with some degree of success. According to the 2000 census (Thamarangsi 2004), the Health equity has long been a global and national health country has 22 435 medical doctors, 119 651 nurses, 6966 target since the era of Health for All and primary health dentists, 10 354 pharmacists and 31 931 rural health care in the late 1970s. In 2001, the new government workers. The proportion of doctors, nurses, dentists and embarked on a new policy of universal coverage of pharmacists in the public sector is 71, 87, 59 and 56%, health insurance. Through this, 30% of the population
  • 2. Dual track policies on health services in Thailand 311 (an additional 18 million people) now have access to drain is a serious constraint for national health system essential care without financial barriers. This policy has development (Whelan et al. 2004). greatly increased the demand for health care. This paper attempts to review the situation and project the The recent economic recovery after the 1997 economic trend of possible implications of the dual track policies crisis has also stimulated demand for health care. And, on health services. It also proposes possible additional at more or less the same time, the private health sector, actions to protect health equity. It was prepared through supported by the government, started intensive marketing review of relevant documents on health services utilization to attract more foreign patients—in order to promote behaviours from the National Health and Welfare the international trade in health services as a means Surveys, surveys of foreign patients from the Ministry of of stimulating economic growth. The initial success Commerce and other relevant local and international of this policy increased the demand for health care by documents. Through the existing information, relevant foreign patients. assumptions are employed to project future trends and implications. In the year 2000, the size of the global health services sector was estimated to be US$300 billion. The estimated figure for 2005 is US$400 billion (Chanda The policy of universal coverage of health 2001). Most of this is for domestic markets. The value of global health services exports in 2000 was estimated at insurance US$14 billion, less than 5% of the global market. Since 1965, the Thai government has tried to gradually However, this may grow rapidly as information and increase the coverage of health insurance, aiming at more communication technology make it easier—for example, health care equity and the reduction of catastrophic through e-health—and as health systems are liberalized illnesses. Health insurance coverage gradually increased and entry barriers are lowered (Woodward et al. 2002). from 33.4% in early 1991 to 71.0% in 2001 (Table 1). In Thailand, more than 60% of the Thai GDP in 2003 Yet there were still around 20 million people without came from exports (Wibulpolprasert et al. 2004). Thus, any kind of health insurance. The Thai Rak Thai party every government supports the export of goods and proposed, in its political campaign in late 2000, to embark services to stimulate economic growth. The health sector on the universal coverage of health insurance if it was has been targeted recently as one of the potential export elected to government. This campaign played an impor- services. The Thai government is therefore aggressively tant role in its success in the 2001 election. In April 2001 supporting more international trade in health services the policy was initiated in six provinces, then expanded to through improving quality standards, road shows, invest- 21 provinces in July 2001, and has covered every province ment incentives and negotiation with trade partners. since October 2001. However, there may be several possible implications of the Three main health insurance schemes now cover the entire international trade in health services, particularly related population (Table 1): the Civil Servant Medical Benefit to social equity (Chanda 2001). First, consumption of Scheme (CSMBS); the Social Security Scheme (SSS); and health services by foreigners can result in a dual market the universal coverage scheme (30 Baht scheme). structure, which can divert scarce health resources from the poor. Secondly, although foreign commercial presence The Civil Servant Medical Benefit Scheme (CSMBS) can reduce pressure on public resources, it can also lead to a tiered health care system, with a flow of providers from The CSMBS covers civil servants, public employees and the rural public to the urban private health sector. Finally, their dependants. The scheme is paid totally from the although movement of health personnel from developing general tax revenue based on a fee-for-services retro- to developed countries may create opportunities for spective reimbursement system. Public facilities are the remittances to developing countries, the resultant brain main providers under this scheme. Table 1. Coverage of health insurance (%), 1991–2003 Health insurance scheme 1991 1996 2001 2003 Universal coverage – – – 74.7 Social welfare 12.7 12.6 32.4 – Civil servants (CSMBS) 15.3 10.2 8.5 8.9 Social security – 5.6 7.2 9.6 Voluntary health card 1.4 15.3 20.8 – Private health insurance 4.0 1.8 2.1 1.7 Total insured 33.4 45.5 71.0 94.9 Uninsured 66.6 54.5 29.0 5.1 Source: Reports of Health and Welfare Surveys 1991, 1996, 2001 and 2003 (National Statistical Office 1991, 1996, 2001, 2003).
  • 3. 312 C Pachanee and S Wibulpolprasert The Social Security Scheme (SSS) hospitality have contributed to a rapid influx of foreign patients. The SSS is a tripartite system contributed to by employers, employees and the government on an equal share basis. Realizing the potential, in early 2003 the government It covers private employees and temporary public employ- approved the policy titled ‘Thailand: Centre of Excellent ees. Public and private facilities have approximately equal Health Care of Asia’, targeted to achieve 850 000 foreign share of the insurees. This scheme pays the providers by patients in 2004. An income of US$500 million was the contract capitation system. expected for 2004, rising to US$1 billion in 2008 (Bureau of Policy and Strategy, Ministry of Public Health 2004). Universal coverage scheme (30 Baht scheme) The Ministry of Public Health together with the Ministry of Commerce, in collaboration with the Private Hospitals The scheme of universal coverage of health insurance was implemented fully in October 2001, by combining the Association, are the main implementers of this policy. previous social welfare health services and the voluntary Many road shows have been carried out in targeted health card scheme, and further expands the coverage to countries to publicise it. The Board of Investment (BOI) 18 million more people. This scheme covers 74.7% of the provides tax incentives to local and foreign investors for population. It is financed solely from the general tax investment in new health facilities aimed at servicing revenue. Public hospitals are the main providers; they foreign patients. The Ministry of Public Health has cover more than 95% of the insurees. About 80 private published and disseminated a list of private hospitals hospitals also joined the system and register around 4% of that have the capacity to cater for foreign patients. the beneficiaries. Regional trade agreements, for example, the ASEAN Framework Agreement on Services (AFAS), also agree on Since October 2003, the government has embarked on the facilitation of movement of patients and providers universal access to antiretroviral drugs (ARVs). Up until (Chalamwong and Tansaewee 2005). May 2005, more than 50 000 patients have been registered into the system. Further, the economic recovery since 2001 has resulted in increasing domestic demand within the private sector, These two policies have rapidly increased the demand for and resulted in the rapid revitalization of private health health services in the public sector. The overall number facilities. of outpatients in public hospitals in 2003 increased by 40–50%. Increasing demands and competition for limited human resources Policy on promotion of trade in health services Demand from the Thai population Since the late 1980s, the government has promoted trade During the period of economic crisis between 1996 and in health services through tax incentives for investment in 2001, outpatient visits to health care facilities decreased private hospitals. This policy, coupled with the economic from 2.87 to 2.84 visits/capita/year (Vasavid et al. 2004). boom during 1989–96, has resulted in the mushrooming There was also a shift from using private facilities to of urban private hospitals. Between 1987 and 1997, 190 public facilities. The proportion of people using public hospitals were established using this tax incentive facilities increased from 25.4% to 48.45%. The proportion (Board of Investment of Thailand 2004). Twelve private using private hospitals and clinics decreased from hospitals are now listed in the Stock Exchange 26.9% to 17.7% (National Statistical Office 1996, 2001) of Thailand (2004). After the 1997 economic crisis, (Table 2). investment in private hospitals reduced dramatically (Buddhasri et al. 2003). Some private hospitals started The Health and Welfare Survey of 2003, 2 years after new marketing strategies based on packaged services implementing the universal coverage policy and a time and targeted more towards foreign patients. The relatively of rapid economic recovery, found outpatient visits had competitive price, high quality services and excellent increased to 3.62 visits/capita/year (National Statistical Table 2. Health-care-seeking behaviours (%), 1991–2003 Health-care-seeking behaviour 1991 1996 2001 2003 Not seeking health care 16.75 7.10 5.10 5.70 Traditional healing 5.25 3.40 2.35 2.75 Self-medication 37.75 37.20 25.75 22.50 Health centre (public) 9.85 14.05 13.90 17.70 Public hospital 12.95 11.35 34.55 32.30 Private clinic/hospital 17.45 26.90 17.70 22.45 Sources: Reports of Health and Welfare Surveys 1991, 1996, 2001 and 2003 (National Statistical Office 1991, 1996, 2001, 2003).
  • 4. Dual track policies on health services in Thailand 313 Table 3. Projected demand for medical doctors by Thai patients, by moving average method Year Visits/capita/year Population Total visits (OP equiv.) No. of additional doctors required (million) requiring a doctor OP IP (million) Total In private sector 1996 2.87a 0.066a – – – – 2001 2.84a 0.076a 62.0 198.65–208.07 – – 2003 3.62a 0.086a 63.3 247.50–258.39 2443–2795 1002–1146 2005 3.87b 0.092b 64.5 270.18–282.07 1134–1315 465–539 2007 4.29b 0.099b 65.7 302.10–315.15 1596–1838 654–753 2009 4.77b 0.106b 67.0 338.40–352.65 1815–2083 744–854 2011 5.16b 0.113b 68.2 371.17–386.66 1639–1889 672–775 2013 5.59b 0.120b 69.4 407.78–424.55 1830–2105 750–863 2015 6.03b 0.127b 70.7 445.59–463.70 1891–2175 775–892 a Data from Health and Welfare Survey by the National Statistical Office. b Projecting rate of future increase in outpatient (OP) and inpatient (IP) visits by using average rate in the previous three biennial periods, giving equal weight to each period Conditions for projection: (1) Population growth rate ¼ 1%/year (National Statistical Office 2004); (2) 70% of OP and 100% IP require medical doctor services (Wibulpolprasert 2002); (3) One IP visit is equivalent to the workload of 16–18 OP visits (Wibulpolprasert 2002); (4) One medical doctor services 18 000–20 000 OP equivalent visits/year (Wibulpolprasert 2002); (5) 41% of patients visit private hospitals/clinics (Table 2). Office 2003). The use of public facilities had increased to hospitals which were known to cater to foreign patients. 50.0%. One factor contributing to this increase is the Only seven hospitals responded, but it was deduced from universal coverage of health insurance, where most people these that there were 470 000 foreign patients in 2001, are registered with the public facilities. Vasavid et al. a 38% increase from 2000 (Department of Export (2004) point out that one objective of the universal Promotion, Ministry of Commerce 2002). The figure coverage scheme is utilizing health services at the primary increased to 630 000 in 2002, a 34% expansion from 2001 level at public facilities close to home. This objective is (Division of Service Business 2003). In 2003, there were thus accomplished due to the increase in visits to public 973 532 foreign patients utilizing health care services in health care facilities. However, this increased demand for Thailand, a 54.5% increase from the previous year. health services resulted in greater requirements for human These patients brought in revenue of US$660 million. resources for health. Table 3 shows the increase in total Thailand has replaced Singapore as the Asian country demand for doctors projected by the moving average with the highest number of foreign patients (Department method. Another scenario applying average growth of Trade Negotiation, Ministry of Commerce 2004). between 1996 and 2001, of 0.11 visit/capita/year, results Patients come mainly from Japan, USA, Taiwan, UK in a less marked increase in demand. For example, using and Australia, respectively. There is also a rapidly the former method, the additional demand for doctors increasing trend of patients coming from the Middle between 2013–15 is 1891–2175 (Table 3) compared with East and other Asian countries. Empirical evidence from 1252–1457 using the latter methodology. About 60% of the Department of Export Promotion found that 60% of this demand is in the public sector. these patients are expatriates in Thailand or neighbouring countries, 10% are tourists who happened to be ill, and the remaining 30% came specifically for the health Demand for private providers from trade in health services care services. (1) Demand from Thai patients The increasing demand for health care services and the The economic recovery since 2001 and further rapid demand for doctors by foreign patients can be projected, growth have resulted in increasing demand on private as shown in Table 4. It is calculated using the regressive providers among the Thai people. Table 2 shows that the increasing rates of foreign patients. With these increasing proportion of visits to private providers increased from rates, the number of additional medical doctors needed 17.7% in 2001 to 22.4% in 2003. The demand for doctors for foreign patients in 2015 will be around 176–303, in the private sector to provide health services to Thai accounting for 9–12% of additional medical doctors patients is shown in Table 3, and accounts for about 41% required within the health system and 23–34% of those of the total demand. required by the private health sector to service the increasing demand from Thais. (2) Demand from foreign patients Another three scenarios with different constant growth In 2001, the Department of Export Promotion in the rates, of 10–12%, 14–16% and 18–20%, were also Ministry of Commerce carried out a survey of 20 private projected (figures not shown here). Using these rates,
  • 5. 314 C Pachanee and S Wibulpolprasert Table 4. Demand for medical doctors by foreign patients Year Foreign patient visits Total visits (OP equiv.) Additional doctors required by foreign patients (million) requiring a doctor (million) OP IP Total % of those required % of those required in private sector by whole system 2001 0.61a 0.030 1.22 – – – 2002 0.82a 0.041 1.64 – – – 2003 1.26a 0.063 2.53 109–131 11 4 2005 1.76–1.82b 0.088–0.091 3.52–3.64 83–111 18–21 7 2007 2.45–2.62b 0.122–0.131 4.90–5.25 115–160 18–21 7–8 2009 3.18–3.53c 0.159–0.176 6.37–7.06 123–181 17–21 6–8 2011 4.14–4.75c 0.207–0.237 8.89–9.50 159–244 24–31 9–11 2013 5.01–5.96d 0.250–0.298 10.03–11.92 145–242 19–28 7–10 2015 6.06–7.48d 0.303–0.373 12.13–14.95 176–303 23–34 9–12 OP ¼ outpatient; IP ¼ inpatient. a Figure from survey by the Ministry of Commerce plus 30% of the under-surveyed. b Estimation with the assumption of increase at the rate of 18–20% per year. c Estimation with the assumption of increase at the rate of 14–16% per year. d Estimation with the assumption of increase at the rate of 10–12% per year Conditions for projection: (1) An IP visit is equal to 5% of an OP visit and 20 times the OP workload; (2) Every patient requires a medical doctor; (3) One medical doctor provides services to 10 000–12 000 OP visits/year (Wibulpolprasert 2002). the additional demand for doctors for foreign patients total demand. The figures for 2015 increase to 23–34% during 2013–2015 may vary from 15–77% of the and 9–12%, respectively. With a constant high growth additional demand in the private sector arising from the rate, the figures for 2015 may be 56–77% of the additional increasing demand of Thais. This variation depends on demand in the private sector and 19–24% of the how successful the trade in services will be. additional total demand of the country, respectively. Therefore, international trade in health services is not the major contributing factor to the current internal brain Internal brain drain as a result drain. The increased demand from Thai patients in of the competing demands the private sector is more influential. Nevertheless, the number of foreign patients is predicted to increase at a Both increasing demand and more financial incentives in faster rate than the number of Thai patients. Thus, foreign the private sector have resulted in the outflow of human patients will form an increasing proportion of the resources, particularly physicians, from rural public additional demand for doctors in the future. facilities under the Ministry of Public Health to urban private hospitals. According to Pannarunothai et al. (1998), the income gap between private and public health personnel is highest among doctors (a difference Responses from the Thai Government of up to 6–11-fold in 1997), hence the highest outflow. The In the past, the Thai government has implemented several flow fluctuates with the economic situation. It improved measures, on both the supply and the demand sides, to during the period of economic recession (1980–88) but solve the problems of internal brain drain and inequitable worsened during the economic boom (1988–97) due to distribution of human resources. Additional responses rapid expansion of large urban private hospitals. After the have been implemented in the past few years. economic crisis in 1997 the situation improved again. Since 2001, because of the improving economy and the influx of foreign patients, the human resources distribu- Supply-side interventions tion has worsened (Wibulpolprasert and Pengpaiboon Increase supply through increasing production, hiring 2003). The fluctuation in the flow of doctors is illustrated of retired doctors and import of foreign doctors by the figures for doctors employed by the Ministry of Public Health, as shown in Figure 1 (Ministry of Public In response to rapidly increasing demand in the mid- Health 2004). 1990s, the production of physicians was increased by 600 per year during 1993–95. Furthermore, the recent However, the calculated additional demand for physicians increasing demand prompted the government, in mid- by foreign patients in 2003 (as shown in Table 4) is only 2004, to approve a project to accept an additional 10 678 around 11% of the additional demand (domestic and medical students during 2005–14 (The Secretariat of the foreign) in the private sector, and 4% of the additional Cabinet 2004). Figure 2 shows the increasing and
  • 6. Dual track policies on health services in Thailand 315 Percentage of Doctor Loss 80 76.1 70 60 60.6 Economic recovery 61.3 54.7 & influx of foreign 50 patients Percent 45.1 40 33.6 30 23.1 20 17.8 Economic 12.1 10 8 crisis Economic 0 boom 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year Figure 1. Percentage net loss of medical doctors employed by the Ministry of Public Health compared with new recruits, 1994–2003 Source: Bureau of Central Administration, Ministry of Public Health (2004). 2500 2000 1500 Number 1000 500 0 1937 1941 1945 1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017 Figure 2. Output of medical doctors in Thailand Sources: Thai Medical Council; Collaborative Project to Increase Production of Rural Doctors; Bureau of Tertiary Education Policy and Planning, Office of Tertiary Education Commission. projected output of medical graduates. However, the first educated in a local university and local hospitals, and batch of these new medical students will graduate in 2011, retained to work in their districts. which will not be in time to solve the immediate demand. In the longer term, the output of new medical graduates Due to the lag time in the production of new medical seems to be sufficient to respond to the projected graduates, a measure used by some hospitals, particularly requirements. In order to ensure equity of education, urban public hospitals, to help to address the immediate longer rural retention and local acquaintance, the addi- shortage of medical doctors is to hire retired physicians to tional new medical students will be recruited from the work part-time. rural provinces/districts and trained in provincial hospi- tals. For example, in mid-2004 the cabinet approved the In response to the increasing demand in the private sector, ‘One District, One Doctor Project’. Medical students will there was a proposal from the Private Hospitals be recruited from high-school graduates in rural districts, Association to import foreign doctors to serve foreign
  • 7. 316 C Pachanee and S Wibulpolprasert patients, a proposal not well received by the medical staff. This effort has been so successful that the propor- community. However, since 1986, the Thai medical tion of patients visiting health centres increased from licensing examination has been carried out in the Thai 13.9% in 2001 to 17.7% in 2003 (Table 2). language instead of English. According to the Medical Council of Thailand (cited in Wibulpolprasert et al. 2004), since then less than 10 additional foreign medical Discussion and conclusion graduates have been licensed to practice in Thailand. Two-thirds of Thailand’s gross domestic product (GDP) Compulsory public service and provision of financial comes from the export of goods and services. Tourism, incentives including health tourism, accounted for almost 8% of GDP in 2000 (Wibulpolprasert 2002). With the high In 1967, the government decided to enforce a 3-year potential and competitive advantages of the Thai health compulsory public service for new medical graduates, care system, the export of health services is being strongly in response to the rapid external brain drain. More than promoted to gain more foreign currency and boost two-thirds of the new doctors were placed to work in rural economic growth. Accordingly, the trend of rising areas (Wibulpolprasert and Pengpaiboon 2003). demand for the health care services and human resources in the private sector arising from this policy will play an Since 1975, the government has started many financial increasing role in the near future. Increasing international incentives for rural doctors, including hardship allow- trade in health services, particularly the movement of ances, no-private-practice allowances, overtime payments patients or Mode 2 service trade, occurs beyond the and non-official-hours special service allowances. These existing multilateral and bilateral trade agreements financial incentives have been allowed to increase by up to (Wibulpolprasert et al. 2004). Nevertheless, the internal 20% after the implementation of the universal coverage economic recovery and trend of further economic growth scheme. In response to the severe internal brain drain, the have major roles in the current increasing demand on the government approved additional financial incentives in private health sector. Although demand from foreign 2004 and 2005. A new medical graduate working in the patients to the private health sector is increasing at a rate most remote rural district can now earn up to US$1500 higher than that from the domestic population, the latter per month, approximately equal to the salary of a senior still have the greater share. doctor in a central department who has 25 years of working experience. The universal coverage policy is one of the most popular policies of the government. Every public poll between Non-financial incentives 2002–04 conducted by National Health Security Office and ABAC-KSC Internet Poll Research Bureau (2004) Some non-financial incentives have also been imple- shows more than 70% public satisfaction. Thus, the policy mented. For example, the physicians in a rural district will continue with more and more benefits added. This hospital may have career status equivalent to the will definitely increase the demand for health care, in Deputy Director-General of a Central Department, addition to the aging population, the improving economy, i.e. PC (position classification) level 9.1 More opportu- more urbanization and better education. Consequently, nities for continuing education for rural health personnel the demand for health care and associated human are also provided. Social recognition such as an annual resources by the Thai people will continue to increase, award for the outstanding rural health personnel is although at a lower rate than that by foreign patients. another important strategy implemented. Thus, the competition for limited human resources for Demand-side interventions health between the trade in health services and the universal coverage policy will continue in the future, as Health promotion campaigns will the trend of internal brain drain. Intensive health promotion campaigns and strategies have been promoted together with the implementation of It is evident that since the Thai government started universal coverage. The main targets include increased promoting the private health sector in the 1980s, there physical activity, tobacco control, control of alcoholic have been relatively inadequate regulations and strategies beverages, diet, and rest and relaxation. A national to reduce any harmful effects, particularly on health ‘Healthy Thailand’ project was approved in 2004, service inequity. There is thus an urgent need to revisit aiming at a healthier population with subsequently less these policies and to establish effective strategies and use of medical care services. measures to ensure equitable access to quality health services. Such measures may include supporting innova- tive models to involve the private sector in the provision of Promotion of primary care essential health services to the urban poor and rural One of the main targets of universal coverage is to population; to allow tax incentives only to those private strengthen near-home primary care services. Primary care providers who also provide public health services; and units (mainly non-physician manned health centres) greater regulation of price and quality of private health have been upgraded and manned with more nursing services.
  • 8. Dual track policies on health services in Thailand 317 Table 5. Top five factors contributing to the resignation of doctors in the Ministry of Public Health, in 2003 Rank General practitioners Specialists Factor % Factor % 1 Opportunity for continuing education 31.84 Administration of system 17.97 2 Workload 14.04 Income 16.99 3 Distance from home 11.98 Workload 13.40 4 Income 9.36 Hospital administration 12.75 5 Hospital administration 6.55 Quality of life 9.48 Source: Thamarangsi (2003). Although the competing demand for limited human References resources between the universal coverage scheme and Board of Investment of Thailand. 2004. Investment data [online]. the promotion of trade in health services may Bangkok: Board of Investment. Accessed August 2004 at: contribute to the internal brain drain, there are other [http://www.boi.or.th]. contributing factors. A study by Thamarangsi (2003) Buddhasri W, Saithanu S, Tangcharoensathien V. 2003. Private found that the top five factors contributing to the hospital industry in Thailand after the economic crisis, resignation of general practitioners were opportunity 1996–2001. A research report. Nonthaburi, Thailand: for continuing education, workload, distance from International Health Policy Programme. home, income and hospital administration, respectively Bureau of Policy and Strategy, Ministry of Public Health. 2004. (Table 5). The most important factor for newly graduated ‘‘Thailand: Centre of Excellent Health Care of Asia’’ Strategies. general practitioners was the opportunity for continuing Nonthaburi, Thailand: Ministry of Public Health (mimeograph). education. The main factors for trained specialists Chalamwong Y, Tansaewee P. 2005. Movement of health care and were equally attributed to non-conducive administration information technology professionals in Thailand: impact systems, income and workload. The non-conducive implications of AFAS. TDRI Quarterly Review June 2005. administrative systems included the vertical nature of Bangkok: Thailand Development Research Institute. the structure, inadequate freedom of practice, the difficult Chanda R. 2001. Trade in Health Services. Commission on bureaucratic system, and the centralization of the Macroeconomics and Health, WHO, Working Paper administration. No. WG4: 5 June 2001. Accessed August 2005 at: [http:// www.cmhealth.org/docs/wg4_paper5.pdf ]. Thus, in addition to strengthening the existing measures, Department of Export Promotion, Ministry of Commerce. 2002. other additional measures need to be implemented. Questionnaire survey of foreign patients. Nonthaburi, Thailand: Ministry of Commerce (mimeograph). First, the reform of the administrative systems at the Department of Trade Negotiation, Ministry of Commerce. 2004. local and central level is a priority issue. The Ministry Document for Public Hearing Session on Trade in Services of Public Health established one ‘autonomous’ hospital under Trade Liberalisation Agreement. 21 September 2004, in 2001 which proved to be very successful. However, Nonthaburi, Thailand: Ministry of Commerce. due to the desire to centralize the power structure, Division of Service Business. 2003. Hospital service business. this movement has not progressed so far. Secondly, Nonthaburi, Thailand: Department of Export Promotion, more non-financial incentives need to be advocated, Ministry of Commerce. targeted at more social recognition and greater Ministry of Public Health. 2004. Record of the loss of fulfilment among rural public health personnel. Finally, government officials. Personnel Division, Bureau of Central the implications of broader social inequity should not be Administration. Nonthaburi, Thailand: Ministry of Public Health (mimeograph). overlooked. National Health Security Office and ABAC-KSC Internet Poll Research Bureau. 2004. Results of satisfaction survey of the UC There is a definite demand for further research into the in 2003, 2004. Nonthaburi, Thailand: National Health Security need for more coherence between the two dual track Office. policies, particularly on the growth of foreign patient National Statistical Office. 1991. Report of the health and welfare numbers, the trend of health seeking behaviour among the survey 1991. Bangkok: Statistical Forecasting Bureau. Thai, the workload of health personnel and the evaluation National Statistical Office. 1996. Report of the health and welfare of all incentive schemes. survey 1996. Bangkok: Statistical Forecasting Bureau. National Statistical Office. 2001. Report of 2001 health and welfare survey. Bangkok: Statistical Forecasting Bureau. National Statistical Office. 2003. Report of 2003 health and welfare Endnotes survey. Bangkok: Statistical Forecasting Bureau. National Statistical Office. 2004. Population growth rate [online]. 1 The career for Thai civil servants starts from PC level 1 Bangkok: National Statistical Office. Accessed October 2004 rising to PC level 11. PC level 9 is the level for Deputy Director at: [http://www.nso.go.th/nso/data/data23/stat_23/toc_1/ General of a Central Department or the deputy governor. 1.1.3.4-1.xls].
  • 9. 318 C Pachanee and S Wibulpolprasert Pannarunothai S, Tharathep C, Thamthataree J et al. 1998. Biographies Management of public and private hospitals: a financial and business opportunities for the autonomous hospitals. Nonthaburi, Cha-aim Pachanee has been working at the International Health Thailand: Health Systems Research Institute. Office, Bureau of Policy and Strategy, Ministry of Public Health, Stock Exchange of Thailand. 2004. Investment information [online]. Thailand, for 5 years after receiving her undergraduate degree in Bangkok: Stock Exchange of Thailand. Accessed August 2004 Public Health (Environmental Health) and Master of International at: [http://www.set.or.th/static/market/market_u7.html]. Health. Before joining the Ministry of Public Health, she was Thamarangsi T. 2003. The study on resignation of medical doctors a research assistant at the Thailand Environment Institute from in Thailand. A Research Report. Nonthaburi, Thailand: 1997–98. Her main interests are in international health, international International Health Policy Programme. trade in health services, human resources for health, health systems Thamarangsi T. 2004. Analysis of information an human and health policies. Ms Pachanee is currently studying for a PhD resources for health from 1990 and 2000 census. A research in Epidemiology and Population Health at the National Centre for report. Nonthaburi, Thailand: International Health Policy Epidemiology and Population Health, the Australian National Programme. University, Canberra, Australia. The Secretariat of the Cabinet. 2004. Cabinet meetings and results [online]. Accessed August 2004 at: [http://www.cabinet.thaigov. Suwit Wibulpolprasert, MD, is a general practitioner as well as a go.th/cc_main21.htm]. public health man. His main focus is on health policy and planning Vasavid C, Tangcharoensathien V, Tisayaticom K et al. 2004. and international health. He has been actively involved in research Health and welfare of Thai population after universal health and development in the area of human resources for health, health care coverage (UC) – Part 1: Illness, utilisation compliance of economics and health care financing, international trade and health, health care services of UC members. Journal of Health Science health promotion, and control of food and drugs. Currently, he is a 13: 428–39. board member of the Health Systems Research Institute, and the Whelan AM, Arkles RS, Dewdney J et al. 2004. International evaluation board member of the Thailand Research Fund. During movement of skilled health professionals: ethical policy 2000–03, he served as the Deputy Permanent Secretary for Public challenges for developed nations. Harvard Health Policy Health responsible for international health and health policy. Review 5: 2. From mid-2001 to March 2004, he represented Thailand and the Wibulpolprasert S (ed). 2002. Thailand health profile 1999–2000. South-east Asia region as the member of the governing board of the Bangkok: Express Transportation Organization Printing Global Fund to Fight AIDS, Tuberculosis, and Malaria (GF). House. From November 2003 to 2006, Dr Suwit served as the President Wibulpolprasert S, Pengpaiboon P. 2003. Integrated strategies of the Intergovernmental Forum on Chemical Safety, while he is to tackle inequitable distribution of doctors in Thailand: now the Senior Advisor on Health Economics, Ministry of Public four decades of experience. International Journal of Human Health, Thailand. [Address: 5th floor, 1st building, Office of Resources for Health 1: 12. Permanent Secretary, Ministry of Public Health, Tiwanond Road, Wibulpolprasert S, Pachanee C, Pitayarangsarit S et al. 2004. Muang District, Nonthaburi 11000, Thailand. Tel: 66–2–5901122; International service trade and its implications on human fax: 66–2–5918513; E-mail: suwit@health.moph.go.th] resources for health: a case study of Thailand. Human Resources for Health 2: 10. Correspondence: Ms Cha-aim Pachanee, International Health Office, Woodward D, Drager N, Beaglehole R et al. 2002. Globalization, Bureau of Policy and strategy, Office of Permanent Secretary, global public goods, and health. In: Drager N, Vieira C (eds). Ministry of Public Health, Tiwanond Road, Nonthaburi 11000, Trade in health services: global regional and country perspective. Thailand. Tel: þ61 2 6125 5611; Fax: þ61 2 6125 0740; E-mail: Washington, DC: Pan American Health Organization, pp. 3–11. chaaim@health.moph.go.th and Chaaim.pachanee@anu.edu.au.