K32 trillion needed for health sector plan
Government has said it requires an estimated $31.2 billion (K32 trillion) to implement the Health Sector Strategic Plan III (HSSP III), which aims to build strong and holistic health systems from this year to 2030.
However, funding modalities put implementation of the plan at risk and eventual failure to achieve its objectives, as it shows that the country may only find $4.7 billion (about K5 billion) out of the total required amount by 2030.
For instance, the plan shows that for the 2023/24 fiscal year, although the need was $4 billion (about K5 billion) it was estimated from resource mapping round seven that only approximately $690 million (about K670 billion) would be available in total.
Out of the $690 million, the $537.1 million is fungible funding or assumed to be available for re-allocation by the budget holder to priorities in HSSP III, while $153 million is non-fungible government and donor funding.
It reads: “Therefore, the 2023/24 needs were prioritised down to fit within the $537.1 million envelope estimated. Assuming conservatively that this level of funding persists, the HSSP III will realistically be implemented at $4.7 billion, with an acceptable margin of error, over the eight years.”
There is clear indication in the plan for government to increase per capita spending on health, currently hovering around $39 (about K40 000), the lowest in Sub-Saharan Africa where it averages $240 (about K250 000).
“In addition to being stagnant for the past decade, this is far below the WHO recommended $86 [about K90 000] per capita expenditure on health for optimal implementation of Universal Health Coverage.
For Malawi to achieve the required funding, cost per capita in the first year must rise to $78.7 (about K80 000) and then move to $172.12 (about K175 000) on average over the eight years of HSSP III.
President for Physicians Assistants Union of Malawi (PAUM) Solomon Chomba urged government to finalise implementation of central hospitals’ autonomy.
He said this will spur economic growth and sustainability of the referral hospitals thereby reducing the cost burden on government and indirectly increasing health sector funding.
The goal of the HSSP III, is to move towards Universal Health Coverage by improving health status, financial risk protection and client satisfaction, but recognises that resources for health care delivery are inadequate.
