Healthcare providers in Nigeria are calling for the creation of a national health bank to address funding gaps in the sector and improve access to advanced medical equipment.
Proposal Overview:
- Objective: The proposed health bank aims to serve as a dedicated financial institution to support the healthcare sector by providing low-interest loans and grants for infrastructure development, equipment purchases, and research.
- Model: Similar to the Bank of Industry, the health bank would be managed by an independent body, separate from the Federal Ministry of Health, to avoid bureaucratic delays and enhance efficiency.
Background and Justifications:
- Current Challenges: The Nigerian healthcare system faces chronic funding shortages, affecting the quality of care and accessibility. This has been compounded by economic challenges, such as the need for self-generated power and fuel, which add to operational costs.
- Advocacy: The Nigeria Medical Association (NMA) and other healthcare experts have long advocated for the establishment of a health bank. They argue that such an institution would help reduce medical tourism, enhance the quality of local healthcare facilities, and improve overall healthcare delivery.
Potential Benefits:
- Funding Support: The health bank would offer single-digit interest loans to private healthcare providers, facilitating the establishment of world-class facilities and supporting ongoing healthcare projects.
- Sustainability: By providing predictable and sustainable funding, the health bank would ensure that financial support is tied to specific health outcomes and national goals.
- Public-Private Partnerships: The bank could foster partnerships between public and private sectors, driving innovation and improving healthcare delivery in underserved regions.
Expert Opinions:
- Dr. Babatunde Rosiji: Medical Director at the State Specialist Hospital, Ikole, emphasized that a health bank would alleviate financial burdens on private healthcare providers and address gaps in the public healthcare system. He called for the health bank to be managed by a distinct, independent body to avoid bureaucratic delays.
- Dr. Lolu Ojo: Consultant Pharmacist and Managing Director of Merit Healthcare Limited, supported the idea, highlighting that a health bank could reduce healthcare costs and improve sector dynamics. He stressed the importance of professional management and diverse funding sources.
- Eze Onyekpere: Lead Director at the Centre for Social Justice, advocated for the establishment of the health bank during a workshop on innovative healthcare funding, supported by the USAID.
Funding and Management:
- Sources: Funding could come from a mix of government allocations, private investments, and philanthropic contributions. The health bank should adopt a basket funding approach to ensure sustainability.
- Management: An independent body, including representatives from professional associations and health financing experts, should oversee the bank to ensure it meets the sector’s needs effectively.
Conclusion:
The establishment of a national health bank is seen as a crucial step towards improving Nigeria’s healthcare system by providing necessary financial support and fostering a more robust and accessible healthcare infrastructure. The initiative aims to address long-standing funding issues and enhance the overall quality of healthcare services in the country.
