Over the past decade the health sector has maintained a budget share of over 8which has accounted for 87.8of total health care financing in Papua New Guinea. Recently, disappointing economic performance, and an annual population growth rate of 2.3has led to a decline in the level of government funding available for health. As a result, the government is examining alternatives for providing the finances needed to maintain the existing level of health services. This paper quantifies the expected financial shortfall for funding the recurrent costs of the hearth system. It then discusses the primary alternatives for filling the resource gap: taxes, user fees, insurance and mission hearth services. Three criteria, feasibility, acceptability and coverage, are used to evaluate each of the alternatives given the country's political and economic situation.
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