Decentralization of Healthcare in Health System Development Perspective

Decentralization Initiations Decentralization has been accepted as one of the fundamental mechanisms in improving governance. However, not all functions of governance can be decentralized in reality. In 2009, decentralization of health care was chosen and dis-cussed at the World Health Organization  (WHO)  -  South  East  Asia  regional  meeting  on  Healthcare  Reform for the 21st Century. The regional seminar on decentralization of health-care services in the South-East  Asia  Region  intend-ed to discuss experiences among Member  countries  of  the  South  East Asia Region including Myanmar, which have varying degrees of decentralization in health care services.    The  editorial  perspectives in the daily newspaper Global New Light of Myanmar published on  11  September,  2019  indicated  that  the  Ministry  of  Health  and  Sports (MOHS) would decentralize  its  authority  by  giving  more  power  to  the  heads  of  regional  and  state  health  departments  and  medical  superintendents  to  make  healthcare  services  more  effective. Under the reforms, the health  leaders  in  regions  and  states  would  no  longer  need  to  wait  for  orders  or  permissions  from superiors and they would be able to make their own decisions on  their  operations.  At  the  same  time,  they  would  require  more  support  to  effectively  carry  out  their tasks, with the delegation of more  authority  concerning  their  administration, management, staff affairs, and finance but they would have to take responsibility and be accountable for their actions. 

 

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What is Decentralization?—The term “decentralization” em-braces a variety of concepts which must be carefully analyzed in any particular  country  before  determining  if  projects  or  programs  should  support  the  reorganization  of  financial,  administrative,  or  service  delivery  systems.  Decentralization—the  transfer  of  authority  and  responsibility  for  public functions from the central government  to  subordinate  or  quasi-independent  government  organizations  and/or  the  private  sector—is a complex multifaceted concept. Different types of decentralization should be distinguished because they have different char-acteristics, policy implications, and conditions for success.


Types of Decentralization —include  political,  administrative,  fiscal,  and  market  decentralization. 


Political Decentralization — aims to give citizens or their elect-ed representatives more power in public decision-making. 


Administrative  Decentralization— seeks  to  redistribute  authority, responsibility and financial resources for providing public services  among  different  levels  of  government.  It  is  the  transfer  of responsibility for the planning, financing  and  management  of  certain public functions from the central government and its agencies  to  field  units  of  government  agencies,  subordinate  units  or  levels of government, semi-autonomous public authorities or corporations, or area-wide, regional or functional  authorities.  The  three  major forms of administrative decentralization — deconcentration, delegation, and devolution — each have different characteristics.


Deconcentration— which is often considered to be the weak-est  form  of  decentralization  and  is used most frequently in unitary states—  redistributes  decision  making  authority  and  financial  and  management  responsibilities among different levels of the central government. 


Delegation—  is  a  more  wide-ranging  form  of  decentralization. Through delegation central governments  transfer  responsibility for decision-making and ad-ministration of public functions to semi-autonomous  organizations  not wholly controlled by the central  government,  but  ultimately  accountable  to  it.  Governments  delegate  responsibilities  when  they create public enterprises or corporations, housing authorities, transportation  authorities,  special service districts, semiautonomous  school  districts,  regional  development corporations, or special project implementation units. 


Devolution— A third type of administrative  decentralization  is devolution. When governments devolve  functions,  they  transfer  authority  for  decision-making,  finance,  and  management  to  quasi-autonomous  units  of  local  government  with  corporate  status. Devolution usually transfers responsibilities for services to municipalities  that  elect  their  own  mayors  and  councils,  raise  their  own revenues, and have independent authority to make investment decisions.  In  a  devolved  system,  local governments have clear and legally  recognized  geographical  boundaries  over  which  they  exercise authority and within which they perform public functions.


Fiscal Decentralization 


Financial  responsibility  is  a  core  component  of  decentralization. If local governments and private organizations are to carry out decentralized functions effectively, they must have an adequate level of revenues –either raised locally or  transferred  from  the  central  government–  as  well  as  the  authority  to  make  decisions  about  expenditures. 


Economic or Market Decentralization— The most complete forms  of  decentralization  from  a  government’s  perspective  are  privatization and deregulation be-cause they shift responsibility for functions  from  the  public  to  the  private sector. 


Privatization—  can range in scope from leaving the provision of  goods  and  services  entirely  to  the  free  operation  of  the  market  to  “public-private  partnerships”  in which government and the private  sector  cooperate  to  provide  services or infrastructure.


Deregulation— reduces the legal  constraints  on  private  participation  in  service  provision  or  allows competition among private suppliers for services that in the past had been provided by the government or by regulated monopolies. In recent years privatization and  deregulation  have  become  more  attractive  alternatives  to  governments in developing countries. Local governments are also privatizing by contracting out service provision or administration. 


Opportunities and Challenges in Decentralization 


For effective decentralization of  healthcare  services  in  Myanmar, improvement of management capacity and clear understanding of the decentralization concept at all administrative levels is essential. Civil society inclusion in policy formulation, implementation and monitoring is necessary to ensure transparency,  accountability  and  efficiency.  Decentralization  is  an  opportunity to improve public–private partnership as well as regulation  of  the  private  health  care  sector. There is also an opportunity to reduce the need for referral care by improving community health-care centers in the era of epidemiological transition and increasing double disease burden. Decentralization  processes  in  developing  countries are facing a number of challenges, among them skills and capacity  constraints,  particularly  for  remote  or  conflict  affected  areas.    Facing  those  challenges  necessitate gradualism of reform, but  also  use  of  new  approaches  suggested  by  international  practices. There are challenges to keep the  quality  of  health  information  including  data  from  the  private  sector.  Outcomes  of  decentralization,  also  in  terms  of  service  delivery, do not depend solely on the  intensity  of  decentralization  but rather on how it is done. There are no easy recipes to ensure quality service delivery.  Most possible recipes  are  not  exclusive  to  one  particular  level  but  apply  to  all  levels of health service provisions.


Suggestions in Myanmar Con-text 


Policies  for  decentralization  should  be  formulated  through  a    need-based approach with the active involvement of the community, civil society, and ethnic health organizations in planning, budgeting, implementation  and  monitoring.  These policies should provide decentralization  framework  ensuring adequate human and financial resources from central and local levels,  regulating  private  sector  involvement,  supporting  health  information  systems  (HIS)  at  national  and  sub-national  levels  to  collect,  analyze  and  use  data  for  health  care  quality  improvement. Upgrading in primary care services,  the  human  resource  development  and  policy  on  staff  deployment should be taken into consideration  for  retention  of  skilled staff and ensuring continuity of quality services distributed in equitable manner. 


Reference:


1.World Health Organization: Report of the Regional Seminar;   Decentralization  of  Health-Care  Services  in  the  South-East  Asia  Region;  Bandung,  Indonesia, 6-8 July 2010


2.Global  New  Light  of  Myanmar Perspectives:  Decentralization  of healthcare needs coordinated effort;  Date: September 11, 2019


3.Decentralization  in    healthcare;    European  Observatory  on Health Systems and Policies Series; Josep Figueras, Martin McKee,  Elias  Mossialos  and  Richard B. Saltman; 2007


4.Asian  Development  Bank:Decentralization  and  Public  Service Delivery in Asia; ADB Economics Working Paper Series; Giorgio Brosio; 2014


5.World  Bank  Institute:  Decentralization  Briefing  Notes  Edited  by  Jennie  Litvack  and  Jessica Seddon


By Dr Than Lwin Tun, Ministry of Health and Sports