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Funding for Health Care Organizations - Essay Example

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The paper "Funding for Health Care Organizations" states that there are methodologies used for funding for health care organizations. General taxation is one of the methodologies used in funding. This refers to the direct and indirect tax which is collected by the government in order to healthcare…
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Funding for Health Care Organizations
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Social insurance is used where employees and employers make compulsory contributions in form of premiums to cater to non-employed individuals (Pauly, McGuire & Barros, 2011).

The financing structure, as well as, payer mix is different in these different funding modes. This is especially so in general taxation. General taxation is very efficient because of its containment aspect. Additionally, its financing strategy forces prioritization of cash-limited healthcare budgets set by the government allowing tradeoffs with other public health priorities like reduction of poverty and education. There is a low administrative cost in this mode of funding and can assist individuals during difficult times. This is because of the fact that it draws revenue from a wide base in minimizing distortions in economic sectors. One of the organizations that have really benefited from this funding methodology is the National Cancer Institute. Additionally, the national institute of health is another institution that is funded using the general tax.

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