Economic Influences on Peru’s Healthcare System

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Table of Contents

Introduction
Financial Support of Peru’s Healthcare System
The Flaws in Marketplace for Healthcare in Peru
Conclusion
References

Introduction

The global healthcare market is highly dependent on individual nations protecting public health to the best of their capabilities. With the external support from leading countries that formulated the Agenda for Sustainable Development, many developing nations began to improve the effectiveness of their health systems (Gianella et al., 2020). The healthcare market in Peru is heavily dependent on the support described above, allowing the country to begin adopting universal healthcare (UHC) as a primary way of service provision. In order to overcome its current challenges, Peru must adjust its budgetary practices and streamline insurance coverage capacity across medical organizations. This paper will analyze how the marketplace for medical services shapes this nation’s healthcare system.

Financial Support of Peru’s Healthcare System

First of all, it is essential to understand the financing of Peru’s healthcare. The primary economic influence on the Peruvian healthcare system is the development initiative by the Organization for Economic Co-operation and Development (OECD) (Vammalle et al., 2018). Modern understanding of public health covers the global situation of preparedness for emergencies, such as COVID-19. Therefore, the creation of a solid framework through this financial stream must cause Peru to increase the quality and accessibility of healthcare services simultaneously.

The Flaws in Marketplace for Healthcare in Peru

Decentralized Healthcare Funding

While OECD’s impact is certainly positive, Peru continues to struggle to achieve its goals due to the core flaws in its system. Currently, the healthcare market in Peru is highly fragmented, and both public and private organizations in this sector do not support the UHC initiative to their fullest potential due to decentralization (Vammalle et al., 2018). This core flaw disallows proper resource allocation among communities in need and wealthy individuals who can access private services. Vammalle et al. (2018) argue that “a re-centralization trend is […] under way, both in terms of policy execution and in terms of funding” (p. 27). This critical change is supposed to bring the healthcare system under the control of a single governmental body and alleviate the disparity between different populations. As of now, the marketplace for medical services puts people from low-income households under pressure to accept a subpar quality of care.

Public-Private Partnership (PPP)

Nowadays, public and private institutions are struggling to cooperate with each other. The Peruvian government has developed the National Plan on Competitiveness and Productivity, which aims to correct the situation by expanding the influence of insurance policies on private institutions (Gianella et al., 2020). This move should improve the accessibility of treatment from private clinics and hospitals and push the country toward UHC. Although there are issues with corruption that undermine PPP, a focus on increasing revenue streams to the government and distributing them equally among healthcare organizations can stabilize the direction of all involved sides (Gianella et al., 2020). The promotion of a positive relationship between private and public institutions is the key to solving Peru’s inequalities that stem from differing economic and political influences.

Conclusion

In conclusion, the marketplace for healthcare in Peru is decentralized and does not support the OECD’s initiative for UHC in the country. The lack of communication between different governmental structures that can affect the performance of Peru’s healthcare system causes a detrimental effect on the country’s citizens. It is essential to ensure the flexibility of insurance coverage and higher accessibility to essential services in order to improve the situation in the healthcare market. PPP is a viable strategy that can assist the Peruvian government in aligning its strategy with OECD’s views on global well-being.

References

Gianella, C., Gideon, J., & Romero, M. J. (2020). What does COVID-19 tell us about the Peruvian health system?Canadian Journal of Development Studies, 42(1-2), 55-67. Web.

Vammalle, C., Ruiz Rivadeneira, A. M., James, C., Prieto, L., & Montañez, V. (2018). Financing and budgeting practices for health in Peru. OECD Journal on Budgeting, 17(2), 25-64. Web.

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