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Strategic purchasing Strategic purchasing is also known as “active purchasing”, an iterative
process in which funding and legal entitlements to health services are
guided by the score and quality of services and the performance of
providers, based on the health needs of the population at large. The
strategic purchasing process entails five core decisions to be made for
implementation, including “what services to buy”, “who to buy the
targeted services”, “for whom to buy services”, “from whom to purchase
services,” and “how to purchase”.
(WHO, 2000)
Strengthening Strengthening government stewardship and capacity is one of the five
government elements of strategic purchasing based on a synthesised framework.
stewardship and Governance entails the clear delineation of roles as purchaser, provider,
capacity and beneficiaries. It is recommended that governments incorporate health
policies into purchasing decisions, invest in an integrated and centralised
framework that builds upon explicit contractual terms, and ensures
enough government credibility to enact and enforce change.
(Klasa et al., 2018; WHO, 2017b)
System of Health The System of Health Accounts (SHA) is the result of a joint international
Accounts (SHA) effort to propose a framework for the systematic description of financial
flows related to healthcare. Its core accounting framework emphasises
the tri-axial relationship between the classifications by the functions of
healthcare (types of healthcare goods and services to be consumed), by
healthcare provision (types of healthcare providers who deliver these
goods and services), and by financing schemes (how are these goods and
services paid for).
(OECD et al., 2017)
Universal health UHC is defined by the WHO as “all people [having] access to the health
coverage (UHC) services they need, when and where they need them, without financial
hardship.” To attain UHC, a health coverage mechanism must cover more
people (population axis), offer more comprehensive services (services
axis), and extend coverage to more people (financial protection).
(WHO, n.d.)
Voluntary Health The Voluntary Health Insurance Scheme (VHIS) is a policy initiative
Insurance Scheme launched in April 2019 by the Food and Health Bureau to regulate
(VHIS) indemnity hospital insurance plans offered to individuals in an effort to
shift demand from the public healthcare sector to the private sector.
Insurance companies and consumers participate in the scheme
voluntarily.
(FHB, 2021d)
Willingness-to-pay Willingness-to-pay (WTP) refers to individuals’ willingness to spend money
(WTP) out-of-pocket for a programme or intervention.
(Culyer, 2014)

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