Papua New Guinea s (PNG) health systemis characterized by low health inputs per capita, low healthservice contact rates and significant inequities in healthcare use. Health spending relative to GNI per capital and asa revenue share of GDP is low. Government spending as ashare of total health expenditure is, however, high and thefinancing system is dependent on a number of complexinteractions between a number of agencies, both at thenational and subnational level. Anecdotal evidence suggeststhat out-of-pocket (OOP) spending is minimal. The currentsystem of health financing has not delivered improved healthoutcomes; in fact health outcomes in PNG have been stagnantin recent decades. PNG is not on track to meet any of thehealth-related Millennium Development Goals (MDGs).Significant investment in the heath sector is needed toaddress the decline, meet current demographic trends andaddress inefficiencies and inequities. These additionalresource requirements will have to be met while maintainingthe high levels of financial risk protection and relativelyequitable access to health care. The additional resourcerequirements will have to be financed in a sustainablemanner. This report examines three broad health financingoptions in PNG: (i) increasing the level of general revenuespending; (ii) introducing contributory, insurance-basedhealth financing arrangements; and (iii) mobilizingadditional resources through efficiency savings in thesector. The three options are not mutually exclusive.
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