Indonesian Health Reform in a decentralized system Laksono Trisnantoro Center for Health Service Management Gadjah Mada University [email protected].
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Indonesian Health Reform in a decentralized system Laksono Trisnantoro Center for Health Service Management Gadjah Mada University [email protected] Preface This paper is concerned with critical questions: • Is there a reform in Indonesian health sector? • Whether decentralization policy supports health care reform? Content Definition of Reform in Health Care Observations: - 1. Health Care Reform at national level under decentralized policy ( 1999 – 2007) - 2. Health Care Reform in 7 Provinces (2006), Conclusion What next? Reform Definition • sustained, purposeful change to improve the efficiency, equity, and effectiveness of the health sector What Do We Mean by “Health System Reform”? (Bossert, 2007) Health system reform: • Not everything that changes, or causes change, is a health system reform • Purposeful efforts to change the system to improve its performance Using an interesting understanding of: • “little r” reforms; Small changes to one or a few features of the system • “Big R” reforms; Large changes to more than one feature of the system 5 What is the meaning of health system features? • Depends on the definition: • WHO: stewardship, provision, resources generation, etc • Kovner: the role of government in: regulation, provision of services, and financing the system • Harvard and WBI: use the “knobs” metaphora The “Control Knobs” from Harvard and WBI • • • • • Financing Payment Organization Regulation Persuasion and Behaviour Change 7 Terminology • reform • Reform • “little r” reforms; Small changes to one or a few features of the system • “Big R” reforms; Large changes to more than one feature of the system Will be used for analyzing Indonesian Health Sector through 2 observations: • National level • Provincial level Observation 1: National Level • Reform in Finance • Reform in Organizing and Paying Human Resources • Reform in Regulation • Reform in health Promotion • .... Critical Question: Is there any reform in • health finance? • Human Resources? Is there any effort for linking these features of health reform? Reform in Health Finance • Historical context of Indonesian Health Finance • Major milestones in the 2000s • What happened? Historical Perspective Before 1945 1945 - 1965 1965 - 1999 1999 - at present • Colonial Period • Independence and the “Old Order” • “New Order” • Decentralized era Colonial Period • The Dutch Indie was not administered as a welfare state • Health services were provided for government employees, military personnel, and big company employees. • Missionary hospitals and health services worked with limited coverage 1945 - 1965 • The period of market forces suppression • There was no clear national health financing policy. • There was an Act on poor family health services in early 1950s, but poorly implemented. • Health insurance and social security is limited for government employees, military personnel, and big company employees. 1965-1998 • The market economy was introduced • The private sector growth rapidly, incl, for profit hospitals. • There is a corporatization of medical services based on market forces • There was no clear regulation of health market • 1997: Economic crisis induced the Social Safety Net incl. Health. 1999 - current • Decentralization era since the stepdown of Suharto in 1998 • Direct Presidential and Governor/Major election • More populist policies at national,provincial, and district level • Poor family has free health and hospital services • Poor family scheme becomes political issue Historical Facts • Indonesia is not a welfare state since the colonial era • Indonesia has market based economy • Indonesian health system refers to American model using Safety Net, not the British one. • Hospitals operate within market ideology • Medical Doctors (esp. specialists) operates based on the fundamental demand and supply principles. Indonesian health finance situation in 2001 Study by Equitap Group 11/6/2015 18 11/6/2015 19 11/6/2015 20 11/6/2015 21 The market forces domination in Indonesia 11/6/2015 22 Health Finance “Reform” in 2004 Objective: to achieve Universal Health Coverage by National Social Security Law (UU SJSN) Indonesia’s Transition to Universal Coverage (National Social Security Law No.40/2004) PRESIDENT Organization and Management Nat Soc Sec Council Board Board Board Board Board SS Carrier SS Carrier SS Carrier SS Carrier T A S P E N A S A B R I I N F O R M A L PT. J A M S O S T E K PT. PT. T A S P E N A S A B R I SS Carrier PT. A S K E S J A M S O S T E K 5 years Branc Branch Branch Branch A S K E S nch Nat Soc Security Carriers Branch h Branch - Each single existing carrier follows its own regulation - For profit entities Source: MOH: Ida Bagus Indra Gotama, Donald Pardede - Nat Branch Branch Branch Branch Soc Security Council directs main policy - Nat Soc Security Carriers implement the program, not for profit 24 - Synchronization of multiple schemes The program in 2005 • Ministry of Health introduced Askeskin (Health Insurance for the Poor) • The budget was calculated based on 5 thousand rupiah per month per individu. (commercial health insurance: from 25.000 - 250.000, to US dollar for overseas scheme) • There was a poor registration system for poor people at the beginning of the program The Contract to PT Askes Indonesia(2005-2007) • Ministry of Health under the new Minister contracted PT Askes Indonesia for managing the Askeskin scheme for poor family. • This was a radical change from the previous policy, which channel the central budget directly to the hospitals and encourage local government health office to develop health insurance scheme. • There was no pilot study The Change in 2005 Subsidy to Providers (based on utilization) Contract to PT Askes Indonesia PT Askes I Hospital Hospital Commu nity Government as Payer Communit y Government as payer Health Insurance situation (2005-2007) Current Health Insurance Systems in Indonesia JAMSOSTEK Private Insurers TYPES: Social Security. Social HMO Commercial Health Insurance COVERAGE, Millions of People 3 5 ASKES, HMOs P.T. ASKES (14) ASKESKIN (76) HMOs & Comm. Financing (2) Military Health Services Free Health Services 92 106 Million (approximately 48% of population) targeted Source: Health PER, World Bank 2008 2 28 In 2008 2006-2007: Many disputes between Ministry of Health and PT Askes Indonesia • A new change in 2008: Askeskin program was renamed to Jamkesmas. • The coverage is not only the poor but also near poor (more coverage). • The budget is channelled directly to Hospital and Health Centers using managed care concept (incl. DRG) • Increasing budget. The national health security program increased government budget How Pay for Health Care 11/6/2015 30 Is this an indicator of success in reforming Indonesian health finance? Since 2001, - the health program for the poor had improved the utilization of public hospital by the poor - Kakwani Index is improving 0.2 0.1 Kakwani Index Hospital Inpatient Care 0 KI 2001 KI 2004 Hospital Outpatient Care -0.1 Non-hospital Inpatient Care -0.2 Non-hospital Outpatient Care All Public Health Care -0.3 -0.4 Tahun But, • There is still a geographical inequity Due to the access to • Medical specialists • Hospitals Across Indonesia Specialist distribution (KKI, 2008) • Jakarta: 24% of specialists, serves around 4% community in a relatively small area • Provinces in Java: 49% of specialists, serves around 53% community • Rest of Indonesia: 27% of specialists, serves around 43% community in a very large area Average Number of Public Hospital at a district Low economy in the community High economy in the community High Fiscal capacity in local government 2.5 2 Low fiscal capacity in local government 0.5 0.31 35 Average number of Private Hospital at a district Low economy in the community High economy in the community High Fiscal capacity in local government 1.05 2.11 Low fiscal capacity in local government 0.5 1.91 36 Hipothesis • Health Finance provided by Jamkesmas will be used more by poor and near poor people in and around big cities • Most in Java Island • Left the poor and near poor people in remote area or in the places where there is no medical service and specialists This hipothesis may explain why Indonesian Insurance Coverage Status in 2007 (based on social economy survey) looks not good. 1 2,4 2,9 6 Unisured JAMKESMAS ASKES JAMSOSTEK Other JPKM 14,4 73,3 Source: SUSENAS 2007 38 Therefore: • Health finance reform should be linked (at least) with Human Resources Reform • How is the condition of health care reform in human resources? Reform in Human Resources • This discussion focuses on specialist Indonesia is experiencing critical shortage of doctors, midwives and nurses Sumber: WHR 2006 41 How many are really needed? Perception of 32 districts* Need Availability GAP (%) Doctor 987 593 39,9 Specialist Doctor 64 30 53,1 Dentist 497 294 40,8 Midwife 4565 2951 35,4 Nurse 4492 3295 26,6 Pharmacist 89 47 47,2 Dietician 652 404 38,0 Public Health 415 312 24,8 Sanitarian 737 530 28,1 Public Health 182 82 54,9 Epidemiologist 21 0 100,0 13.793 9.216 33,2 Total *) Bappenas Study in 2005 42 Doctor Distribution in 2003-2004 43 As an illustration: Specialists Distribution (Pediatrics) Data: IDAI (Pediatrician Association, 2006) Obstetric and Gynecologist Jumlah Dokter Spesialis Obsetri dan Ginekologi DKI 240 287 163168 Jatim 153 154 Jateng 136141 Jabar 71 Sumut 101 48 46 Bali 42 40 39 46 Sulsel Sumsel 34 Sumbar 56 28 29 27 29 25 27 17 23 21 22 17 18 15 16 14 13 DIY Riau Banten Lampung Kaltim Kalsel Kepri Kalbar 13 11 13 Jambi NAD 20 12 11 7 11 10 12 9 8 68 Sulteng Kalteng Sulut NTB M aluku Sultra 8 5 78 7 NTT Papua 10 56 4 4 13 Bengkulu Babel Sulbar 3 3 24 1 4 Gorontalo Papua Barat M alut 0 50 100 150 200 2006 250 300 2008 Typical graphic description of medical specialist distribution 350 National Plan for “Reform” in Health Human Resource 46 RPJP (Long Term Plan) Reduce disparity on health status and health care Increase the number and improve distribution of health workers Improve access to health facility Reduce double burden of diseases Reduce misuse of narcotics and prohibited substances 47 RPJM (Medium Term Plan) 1. 2. 3. 4. Increase the number, network and quality of health centers; Increase the quality and the number of health personnel; Develop health insurance system especially for the poor; Increase dissemination of environmental health and healthy life style; 5. Increase health education to the community since early age; and 6. Distribute and increase the quality of primary health care. 48 RPJM (Medium Term Plan) Health Resource Program 2004-2009 Objectives : increase number, improve quality & distribution of health personnel, as well as improve health insurance for the poor Main Activities: 1. Setup Plans for health personnel need; 2. Improve skill and profesionalism through education and training 3. Deploy of health personnel especially for health centers (and their networks) and hospitals; 4. Carrier development 5. Improve sustainable health insurance for the poor. 49 RKP 2008 (Annual Plan) 1. Improvement of equity, accessibility, and quality of health services especially for the poor, through provision of free of charge access of the poor to health center and hospitals 2. Improving availability of medical and paramedical personnel, especially in remote and less developed areas 11/6/2015 50 The Facts in 2008 51 Specialist distribution (KKI, 2008) Province DKI Jakarta Jawa Timur Jawa Barat Jawa Tengah Sumatera Utara D.I.Jogjakarta Sulawesi Selatan Banten Bali Sumatera Selatan Kalimantan Timur Sulawesi Utara Sumatera Barat Propinsi Lainnya Number % Cumulative People served Ratio 2.890 23,92% 23,92% 8.814.000,00 1 : 3049 1.980 16,39% 40,30% 35.843.200,00 1 : 18102 1.881 15,57% 55,87% 40.445.400,00 1 : 21502 1.231 10,19% 66,06% 32.119.400,00 1 : 26092 617 5,11% 71,17% 12.760.700,00 1 : 20681 485 4,01% 75,18% 3.343.000,00 1 : 6892 434 3,59% 78,77% 8.698.800,00 1 : 20043 352 2,91% 81,69% 9.836.100,00 1 : 27943 350 2,90% 84,58% 3.466.800,00 1 : 9905 216 1,79% 86,37% 6.976.100,00 1 : 32296 203 1,68% 88,05% 2.960.800,00 1 : 14585 173 1,43% 89,48% 2.196.700,00 1 : 12697 167 1,38% 90,86% 4.453.700,00 1 : 26668 1.104 9,14% 100,00% 52.990.200,00 1 : 47998 12083 100,00% 224.904.900,00 1 : 18613 Number of private hospitals is increasing more than government ones. • Number of For-Profit Private-Hospital almost doubled in the last five years • Number of Non-For-Profit-Private Hospital almost remained the same 03 04 05 06 07 08 For Profit Corporation 49 52 55 60 71 85 Non-Profit (Foundation) 530 538 538 538 539 539 27 27 28 28 28 29 606 617 621 626 638 653 Owner Non-Profit (NGOs) Total The increase of for-profit private hospital: • Most happened in Java • Indicates the increasing role of private sector which can attract more medical specialists to Java • Some owned by medical specialists • Doctor culture is more influenced by private health service organization • Without good payment and better work conidtion is more difficult for out of Java hospitals to attract doctors Medical Specialis Culture Facts in 2008 (done by various cultural studies in medical specialists) • There is not any significant change in medical specialist behavior. • Market influence in specialist is increasing. • Jamkesmas (health insurance) program is difficult to compete with fee for service system for doctor and medical specialists • No managed care culture Current Medical Practices: Specialists prefer to provide services in the middle and upper class using feefor-service Try to set own fees No standard income Link between Health Finance “Reform” and Human Resources • Health finance “reform” does not consider medical doctor and specialist condition • No attention in reforming the doctor payment. The fee for medical doctor from Jamkesmas is too low or not clear. • Human resources “reform” is not clear and weak in practice. Does not meet the criteria of Health System Reform Does not meet the criteria of Health System Reform What Do We Mean by “Health System Reform”? (Bossert, 2007) • Not everything that changes, or causes change, is a health system reform • Purposeful efforts to change the system to improve its performance • “little r” reforms; Small changes to one or a few features of the system • “Big R” reforms; Large changes to more than one feature of the system 58 Note: the National Reform in Health Finance • Health finance reform is • The current not will designed and implementation of SJSN executed Law is more political rhetoric, not technical. • The SJSN Law is not yet effective due to the lack of Government Regulation for implementation • Until 2009 there is no GR Observation 2 • Reform at Provincial Level Based on DHS1 Project at 7 Provinces • • • • • • • Riau Riau Island Bengkulu Bali North Sulawesi South East Sulawesi Central Sulawesi The Question: • Is there any reform with big R at provincial level? • A close observation into 54 DHS1 projects which are called as reform activties in 7 provinces Reform Topics Riau Health Finance Health service provision 9 Riau Island Beng kulu Bali 1 1 2 2 3 7 Nort h Slws S East Slws 1 4 2 Stewardship/regulation Human Resources 1 Community Empowerment 2 Health System development 1 Total 12 5 6 33 1 1 2 2 3 Cent ral Slws 2 1 7 10 3 1 2 1 8 5 7 5 9 54 Analysis • All reformed-program was not designed as a big “R” reform • Each reformed-program is independent each other • The most popular topic: Health service Provision • No reform in public and private partnership Why there was no big “R” of health reform at provincial level? There was no clear definition of health care reform • Provincial Government followed the change of national program and it is called reform. • Technical change in the program is also called reform. • No clear design of health care reform from the central government Decentralization policy is not effective to initiate reform •Conclusion 1. Health Reform is not well prepared at national and provincial level. • Reform is associated with political issue during the Suharto (ex president) stepdown period (1999). • Ministry of Health did not have intention to reform the health sector after decentralization policy (2000 – 2007) • There is no formal health reform document 2. Health reform with small “r”only: not interrelated as prescribed by experts. At national health finance reform was designed without any intention to link to the reform in: • Paying medical specialists • Improving the organization of health service (developing health service network across country) • Changing the behavior of people (e.g smoking prevalence increases among the poor people) 3. Decentralization policy has little effect on the reform at provincial and district level Why? • The Government Regulation No. 25/2000 (based on Act 22/99) on government function at different level was unclear in its concepts and implementation until replaced by PP 38/2007 (based on Act 32/04). • The period of 2000 – 2007 is still in the transition of decentralization policy • It is not the right time for making reform (as it is still in a transitional phase). Notes: in the Decentralization Policy: The pendulum is swinging Act 22/99 Act 32/04 centralization De-centralization 2000-2007: The era of confusion and “strange” situation • Change without significant change • Change in the Laws and Regulation but not significant change in the process and the improvement of health status indicators. Indonesian health sector is a decentralized sector but experiencing: • a more “centralized” financing system (06-07). • Not coordinated change. Will be discussed in Nossal Institute, University of Melbourne, Thursday 20th of May 2009 After the stipulation of GR no 38 in 2007 (following Acts no 32/04): • the legal basis for designing and implementing health reform gets new momentum Act 22/99 Act 32/04 centralization De-centralization Closing remark: What next? Is there any future of Indonesian Health Reform • at National Level? • at Provincial? • at District? Moving Forward • 2007 • Pesimistic? No health reform • Optimistic? There will be health reform at national, provincial and district level • Current activities in Indonesian Health Reform Activities at central level • Ministry of Health established a small group on how to initiate health reform (started 2008) • But, this small group is not fully supported by top officers in the MoH Activities at provincial and district level (small scale) • Gadjah Mada University in collaboration with MoH, local governments, supported by: • The • the World Bank Institute, experiment is • Harvard School of Public Health, and implemented • Ausaid, in 5 Provinces develops the capacity of planning and and 5 executing health care reform through the districts/cities Flagship Program in Health Care Reform and Sustainable Financing (started in 2008) The Flagship Program combined training and consultation PreparationFGD at each Prov/ District - Acquiring data set InIn-campus campus training training (II) Off (I) Off campus campus I: II: work work assignme assignme nt and nt and consultati consultati on on Post-Course Consultation and Workshop Health Sector Reform Cycle EThics Politics Evaluation Problem identification Implementation Diagnostic Political Decision Program Schedule PreparationFGD at each Prov/ District - Acquiring data set Policy Development Incampus training (I) In-campus training (II) Off campus I: work assignme nt Off campus II: work assignme nt Post-Course Consultation and Workshop 78 Whether the activities will be effective to initiate and implement health reform? The Supports • There are sufficient experiences during the transition period of decentralization (2000-2007) • The legal basis is available • The support of Ministry of Home Affair for health reform based in decentralization policy is big. • The knowledge of health reform is supported by international experts But, • The success depends on the leadership of Ministry of Health and Provincial/District/ City Health Leaders. Thank-you