Resource Allocation Formula

Public funding for health care through the MOHFW (Ministry of Health and Family Welfare) to geographic areas is currently based on norms related to the size of facilities. Such allocations often do not reflect population need since health facilities and staffing patterns are often distributed in a way that fails to take account of changing demographic and epidemiological requirements.

Introducing a formula for allocation driven by the needs of the local population will affect the way planning and budgeting is carried out. Currently the MOHFW is mostly concerned with setting budgets for each economic code according to numbers and size of facilities. A formula would require MOHFW officials to focus instead on comparing the population needs of each area.

The work on needs based resource allocation has two phases. The first is the technical development of the formula based on measures of need based on recent work in Bangladesh and international experience. The second is adaptation of the formula for the health system of Bangladesh taking into account the realities of the budget process and need to develop a broad consensus amongst stakeholders. The work draws on a several other studies conducted by the Health Economics Unit, World Bank and University of Dhaka undertaken during the last ten years.



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