Discussing in brief bout the latest statistics of Health Financing in UK, with emphasis on National Health Services (NHS) model and the key challenges being faced by the UK health system financing.

1. United Kingdom Health Financing
System
By
Dr Aditya Sood
Post Graduate Diploma In Health Management at Institute of
Health Management Research, Jaipur , India
Email id- aditya.adi108@gmail.com

2. HEALTHCARE EXPENDITURE
According to World bank Data, Health (2011), UK is spending
9.6% of its GDP on health.
10 9.8
9.6
9.5
PERCENTAGE
8.9
9
8.4
8.5
8
7.5
2007 2008 2009 2010
YEAR

3. Categories of UK healthcare expenditure
Category 1
Publicly funded healthcare expenditure scheme-National Health
Service(NHS).
Health expenditure, public (% of total health
expenditure),UK, 2007-2010 , World Bank Data, Health
(2011)
86
PERCENTAGE
84 84.1 83.9
82 82.4
81.3
80
78
2007 2008 2009 2010
YEAR

4. Category 2
Private Health Expenditure.
• It is 16% of the total Health Expenditure.
• Out of Pocket expenditure as percentage of private
expenditure on health is 62%
OUT OF POCKET EXPENDITURE OF THE TOTAL HEALTH
EXPENDITURE (World Bank Data, Health 2011)
62.06
PERCENTAGE
62.04 62.04
62.02
62
62 62
62
61.98
2007 2008 2009 2010
YEAR

5. Category 3
Private Health Insurance
• Accounts for 2 % of the total Health Expenditure.
• Around 12 % of UKs citizens are covered by private health
insurance
PER CAPITA HEALTH EXPENDITURE ON HEALTH IN US
$, 2007-2010,World Bank Data, Health 2011
4000 3881
PER CAPITA HEALTH
EXPENDITURE US$
3801
3800
3600 3503
3440
3400
3200
2007 2008 2009 2010
YEAR

6. NATIONAL HEALTH SERVICE
Launched in 1948
NHS Aims:
• To provide medical care free at point of use
• To rich and poor alike
• in accordance with medical need
2 beliefs:
• Those who need care will come forward
• Those who provide care know what is required and how to
provide it

7. FUNDED BY :-
General taxation 76%
National Insurance contributions 19%
User charges 5%
(UK department of Health, 2010)
** Apart from these, NHS earns from prescription of drugs &
dental treatments to general population.

8. COVERAGE
It is universal, all those who are resident or citizens of the UK are
entitled to health care.
SERVICES OFFERED
• Preventive
• Inpatient & Outpatient
• Hospital care
• Physician
• Inpatient & Outpatient drugs
• Dental care, mental health care
• Disabilities & rehabilitation

9. COST SHARING
• 88% of prescriptions are exempt from charges.
• Dental services subject to copayment of upto US $ 400/ year.
• Discount through pre payment certificates-people using large
amount of prescription drugs.
• Transport costs to and fro from provider sites-low income group
people.
• People exempted from prescription drug co-payments:-
 < 16 years of age.
 > 60 years of age
 Low income
 Pregnant women
 Those in fulltime education aged 16, 17, or 18.
 Those who had a baby in the last 12 months

10. STRUCTURE
Secretary of State
Department of Health
NHSE
Regional Offices
Strategic Health
NHS trusts
Authorities
Local authorities
Primary care groups

11. TYPES OF
HEALTH
PRIMARY CARE SERVICES SECONDARY CARE
IN UK
TYPES OF TRUSTS
Primary care NHS Foundation
Opticians Acute
GPs
NHS direct Care
Dentist
NHS walk in Mental Health
Pharmacist
centres Ambulance

12. PRIVATE
HEALTHCARE
Private Health Private Out of Pocket
Insurance Hospitals Expenditure

13. REGULATORY BODIES
• National Institute of Clinical Excellence
 publishes guidelines for healthcare professionals
 Private hospitals do not have to follow these
• Healthcare Commission
 Monitoring Healthcare standards and efficiency
 Responsible for publishing NHS performance ratings and
indicators

14. KEY CHALLENGES
• Rising rate of Diabetes
• Rising alcohol related hospital admissions and alcohol related
deaths
• Prevalence of adult obesity in UK is highest in the EU
• Rising demand and treatment cost
• Long waiting periods for elective surgeries
• Variations in quality of care across UK
• Lack of accountability of trusts and Primary Care centres.
• Economic downturn
• Lack of control by central regulatory bodies over private healthcare.