Dr. Kwame Asiedu Sarpong, a renowned Pharmacist and Democracy and Development Fellow in Public Health at CDD-Ghana, has outlined five key expectations that, if met, could redefine Ghana’s health sector.
His proposals—ranging from uncapping NHIS funds to strengthening public-private partnerships—are not mere wishful thinking but pragmatic interventions to build a resilient healthcare system.
However, these come at a cost: increasing health expenditure from the current 6.9% of total government spending to at least inch closer to the Abuja Declaration target of 15%.
A key expectation from Dr. Sarpong is the complete removal of caps on National Health Insurance Scheme (NHIS) funds and the full allocation of the National Health Insurance Levy (NHIL) revenue.
The NHIS, designed to provide accessible and affordable healthcare, has been starved of resources due to government-imposed caps, which redirect portions of the NHIL into other budgetary areas. This has led to frequent delays in payments to healthcare providers and a dwindling trust in the system.
Dr Asiedu Sarpong emphasized that if the government is serious about improving healthcare delivery, it must ensure that all funds earmarked for the NHIS are fully allocated, adding that partial disbursements and diversions only weaken an already fragile system.
Sustainable Domestic Health Financing to Offset USAID Withdrawal
Ghana’s health sector has long relied on donor funding, with USAID playing a significant role in financing critical programs.
However, as USAID scales down its financial commitments, there is a looming funding gap that could cripple essential health interventions.
Dr. Sarpong insisted that the government must develop a sustainable domestic financing model to ensure continuity.
The reality is simple: Ghana cannot continue depending on external donors to fund its health priorities.
Sustainable domestic financing would mean innovative taxation, effective revenue mobilization, and prudent financial management.
Dedicated Funding for Free Primary Healthcare
The government’s proposal for Free Primary Healthcare is commendable, but without a dedicated funding stream, it risks becoming another unfulfilled promise.
Dr. Sarpong emphasized that the policy must not rely on the NHIS alone but should have a clearly defined financial backbone to guarantee its sustainability.
According to him, Ghana’s health financing strategy must go beyond rhetoric, asserting that it requires a detailed implementation plan backed by a reliable revenue stream, whether through an earmarked health tax, improved efficiency in health spending, or leveraging external partnerships.
He emphasized that if the Finance Minister is truly committed to universal health coverage, this budget must spell out how Free Primary Healthcare will be sustainably financed.
Ghana has a history of abandoned and delayed hospital projects due to budgetary constraints and poor financial planning. Dr. Sarpong advocated for a Public-Private Partnership (PPP) model that allows for the completion of health projects without adding pressure on government expenditure or increasing Ghana’s debt stock.
This is a model that has worked in other countries. Leveraging private sector expertise and funding in exchange for long-term partnerships could be the solution to the country’s infrastructure deficit in the health sector.
Pharmaceutical Manufacturing as a Pillar for Economic Transformation
One of the most strategic ways to boost both healthcare delivery and economic growth is to expand Ghana’s pharmaceutical manufacturing sector.
Dr. Sarpong insisted that the government must provide clear policy direction with financial backing to accelerate the sector’s expansion.
This would not only reduce Ghana’s dependence on imported medicines but also position the country as a pharmaceutical hub in the West African subregion.
Currently, Ghana’s pharmaceutical sector struggles with access to financing, regulatory bottlenecks, and competition from cheaper imports.
For Dr Asiedu Sarpong, if the government is serious about industrialization and self-reliance, it must provide incentives, tax breaks, and research support to local pharmaceutical companies.
“All these come at a cost of increasing health expenditure as a proportion of government expenditure from the current 6.9% closer to the Abuja Declaration target of 15%. Can he be that bold and give meaning to the notion that ‘a healthy nation is a wealthy nation?”
Dr Kwame Asiedu Sarpong, a renowned Pharmacist and D&D Fellow in Public Health at the CDD-Ghana
According to Dr Asiedu Sarpong, investing in health is not just a social necessity; it is an economic imperative, asserting that a well-funded health sector leads to a productive workforce, reduces disease burden, and improves life expectancy.
He emphasized that if the government is to give real meaning to the phrase “a healthy nation is a wealthy nation,” then this budget must reflect an unwavering commitment to prioritizing health spending.
Ghana is at a crossroads—either it commits to a sustainable health financing model or continues the cycle of underfunding and inefficiency.
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