Top-down cost-allocation can help universal healthcare schemes in developing countries set better package rates

The advantage of a top-down cost allocation approach in developing markets

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By Kshama Saluja, Shailesh Maloo, Lalit Baveja, Richard A. Kipp, Dr. Sudhanshu Bansal | 12 June 2014
Governments looking to expand universal healthcare schemes need to ensure that appropriate rates are paid to providers. A top-down cost-allocation approach can evaluate the true expense of the procedures and help healthcare schemes offer more realistic rates that attract high-quality private hospitals and other providers. This, in turn, allows schemes to obtain reasonable and credible participation rates that are required for a system aiming to serve a larger population.