INTERNATIONAL CONSORTIUM for MENTAL HEALTH POLICY and SERVICES
MENTAL HEALTH POLICY TEMPLATE

Financing

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POLICY TEMPLATE WITH EXPLANATIONS

RESOURCES

FINANCING
PUBLIC FINANCING OF SERVICE
PRIVATE FINANCING OF SERVICE
PERSONAL FINANCING OF SERVICE

The financing of health and mental health services is derived from a combination of sources within the public and private sector. Public financing is derived from taxation, from government owned insurance schemes and from profit and non-profit donors and grants. Private financing is derived from privately owned for- profit and non-profit health insurance schemes, private financiers and charity and donors. In addition, financing is derived, particularly in developing countries, from out-of-pocket spending by consumers and their families and carers. "Much of what is included in the financing function occurs outside what is usually considered to be the health system."(76) It is argued that the financial arrangements for mental health should be incorporated into the general health financing arrangements but that mental health resources should remain identifiable and be allocated through a mental health programme, regardless of where the services are located. (77)

Those developing mental health policy may look at how mental health is presently being financed in a country, how this impacts on the equity and efficiency of the existing mental health delivery system and on the distribution of the economic burden. Policy makers may wish to determine in what direction a country should proceed in relation to its financing of mental health services, in part, to meet the goals within the mental health policy.

"Health system financing is the process by which revenues are collected from primary and secondary sources, accumulated in fund pools and allocated to provider activities. For the purposes of analysis it is useful to divide health system financing into three sub functions: revenue collection, fund pooling and purchasing." (78) and to consider these sub-functions within public and private domains.