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Increasing reliance on user fees as a response to public health financing crises: A case study of El Salvador

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  • Fiedler, John L.

Abstract

Since the early 1980s, the Ministries of Health of most Developing Countries have been plagued by significant and persistent resource shortages. One response of many Third World countries to this health financing crisis has been to turn to user fees. This article presents a case study of the evolution of public health care system fees in El Salvador in the decade of the 1980s. Since 1980 falling levels of real funding of the Ministry of Health of El Salvador have resulted in falling supplies of drugs, materials and equipment throughout the public health system, and have contributed to declining utilization levels of public health facilities. Local public health providers and their community health boards (patronatos) have responded to this crisis by creatively institutionalizing decentralized, revolving accounts based on 'voluntary' user fees for ambulatory care, collected and retained at individual facilities. This article describes the legal foundations, organization, functioning, incentive structures, financial performance, and the institutional development of El Salvador's local user fee systems.

Suggested Citation

  • Fiedler, John L., 1993. "Increasing reliance on user fees as a response to public health financing crises: A case study of El Salvador," Social Science & Medicine, Elsevier, vol. 36(6), pages 735-747, March.
    • Handle: RePEc:eee:socmed:v:36:y:1993:i:6:p:735-747
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    Cited by:

    1. Fiedler, John L., 1999. "Demand, Market Structure and the Formalizing of Ministry of Health Fees: A Nicaraguan Case Study," World Development, Elsevier, vol. 27(7), pages 1173-1189, July.
    2. Maryam Yaghoubi & Masoud Vahedi Idehlo & Parisa mehdizadeh & Mohammad Meskarpour Amiri, 2023. "Providing a model for financing the treatment costs during biological crises using the fiscal space development approach," Health Economics Review, Springer, vol. 13(1), pages 1-12, December.
    3. Gertler, Paul J. & Hammer, Jeffrey S., 1997. "Strategies for pricing publicly provided health services," Policy Research Working Paper Series 1762, The World Bank.

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