Health finance systems and corruption

How and where corruption appears in the health sector depends partly on the health financing system (much of corruption found in the health sector is a reflection of general problems of governance and public sector accountability) . A health finance system that directly finances the supply of services will be more vulnerable to corruption in procurement and abuses that undermine the quality of services. A system that relies on billing an insurance institution is generally more vulnerable to diverting funds. The first system is known as an integrated system, while the other, with a separation between finance and provider, is called a “finance/provider system”.  Integrated health systems are the most common form of public health systems in developing countries.  Countries with social insurance systems can however be found in middle income countries of Latin America and Asia . In an essay contributed to Transparency International’s Global Corruption Report 2006, William Savedoff and Karen Hussmann explore how the type of national health financing system can affect the level of corruption (Part I: the causes of corruption in the health sector: a focus on health systems. Why are health systems prone to corruption?).”http://www.google.co.in/url?sa=t&source=web&cd=1&ved=0CBsQFjAA&url=http%3A%2F%2Fwww.u4.no%2Fthemes%2Fhealth%2Fcausesandconsequences.cfm&ei=nRtXTrS6DsfjrAeBuenMCg&usg=AFQjCNH7spqqrfQeC-cMFmD49btBaVZ_Xg&sig2=mKfrHOpxs9-pfQc_0bOASg