Who Benefits from Public Healthcare Subsidies in Egypt?

Direct subsidization of healthcare services has been widely used in many countries to improve health outcomes. It is commonly believed that the poor are the main beneficiaries from these subsidies. We test this hypothesis in Egypt by empirically analyzing the distribution of public healthcare subsid...

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Main Authors: Ahmed Shoukry Rashad, Mesbah Fathy Sharaf
Format: Article
Language:English
Published: MDPI AG 2015-11-01
Series:Social Sciences
Subjects:
Online Access:http://www.mdpi.com/2076-0760/4/4/1162
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author Ahmed Shoukry Rashad
Mesbah Fathy Sharaf
author_facet Ahmed Shoukry Rashad
Mesbah Fathy Sharaf
author_sort Ahmed Shoukry Rashad
collection DOAJ
description Direct subsidization of healthcare services has been widely used in many countries to improve health outcomes. It is commonly believed that the poor are the main beneficiaries from these subsidies. We test this hypothesis in Egypt by empirically analyzing the distribution of public healthcare subsidies using data from Egypt Demographic and Health Survey and Egypt National Health Accounts. To determine the distribution of public health care subsidies, we conducted a Benefit Incidence Analysis. As a robustness check, both concentration and Kakwani indices for outpatient, inpatient, and total healthcare were also calculated. Results show some degree of inequality in the benefits from public healthcare services, which varied by the type of healthcare provided. In particular, subsidies associated with University hospitals are pro-rich and have inequality increasing effect, while subsidies associated with outpatient and inpatient care provided by the Ministry of Health and Population have not been pro-poor but have inequality reducing effect (weakly progressive). Results were robust to the different analytical methods. While it is widely perceived that the poor benefit the most from health subsidies, the findings of this study refute this hypothesis in the case of Egypt. Poverty reduction measures and healthcare reforms in Egypt should not only focus on expanding the coverage of healthcare benefits, but also on improving the equity of its distribution.
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spelling doaj.art-755161e42f6747709e9350accd5298812022-12-21T18:45:32ZengMDPI AGSocial Sciences2076-07602015-11-01441162117610.3390/socsci4041162socsci4041162Who Benefits from Public Healthcare Subsidies in Egypt?Ahmed Shoukry Rashad0Mesbah Fathy Sharaf1Department of Economics, Philipps-Universität Marburg, Marburg 35037, GermanyDepartment of Economics, Faculty of Commerce, Damanhour University, Damanhour 22514, EgyptDirect subsidization of healthcare services has been widely used in many countries to improve health outcomes. It is commonly believed that the poor are the main beneficiaries from these subsidies. We test this hypothesis in Egypt by empirically analyzing the distribution of public healthcare subsidies using data from Egypt Demographic and Health Survey and Egypt National Health Accounts. To determine the distribution of public health care subsidies, we conducted a Benefit Incidence Analysis. As a robustness check, both concentration and Kakwani indices for outpatient, inpatient, and total healthcare were also calculated. Results show some degree of inequality in the benefits from public healthcare services, which varied by the type of healthcare provided. In particular, subsidies associated with University hospitals are pro-rich and have inequality increasing effect, while subsidies associated with outpatient and inpatient care provided by the Ministry of Health and Population have not been pro-poor but have inequality reducing effect (weakly progressive). Results were robust to the different analytical methods. While it is widely perceived that the poor benefit the most from health subsidies, the findings of this study refute this hypothesis in the case of Egypt. Poverty reduction measures and healthcare reforms in Egypt should not only focus on expanding the coverage of healthcare benefits, but also on improving the equity of its distribution.http://www.mdpi.com/2076-0760/4/4/1162benefit incidence analysishealthcare subsidiesinequalitypovertyEgypt
spellingShingle Ahmed Shoukry Rashad
Mesbah Fathy Sharaf
Who Benefits from Public Healthcare Subsidies in Egypt?
Social Sciences
benefit incidence analysis
healthcare subsidies
inequality
poverty
Egypt
title Who Benefits from Public Healthcare Subsidies in Egypt?
title_full Who Benefits from Public Healthcare Subsidies in Egypt?
title_fullStr Who Benefits from Public Healthcare Subsidies in Egypt?
title_full_unstemmed Who Benefits from Public Healthcare Subsidies in Egypt?
title_short Who Benefits from Public Healthcare Subsidies in Egypt?
title_sort who benefits from public healthcare subsidies in egypt
topic benefit incidence analysis
healthcare subsidies
inequality
poverty
Egypt
url http://www.mdpi.com/2076-0760/4/4/1162
work_keys_str_mv AT ahmedshoukryrashad whobenefitsfrompublichealthcaresubsidiesinegypt
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