Health Performance Index and Healthcare Expenditure in Assam: Are There any Structural Change?
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An increase in the state of health helps to achieve a maximum productive capacity of human capital and thereby increase the productivity of the market. So, sound health plays an important role for the economic growth and development of the country. But India is still lagging behind in achieving most of the health-related Millennium Development Goals. Within India, Assam is facing a lot of challenges to fulfill the goals of improving its health outcomes with an estimated GDP per capita Rs. 12,163 and the poverty head count ratio of 36.1% (2011), indicating Assam as one of the poorest states of India. However, some success has been achieved in the health outcomes of India by increasing the share of public expenditure on health with the implementation of National Rural Health Mission (NRHM). In this respect, the present study makes an attempt to examine the performance of health indicators in Assam over the years. In order to investigate whether there is any structural change in pre-launch and post-launch of NRHM, Bai and Perron test has been used for the period 1995–2013. The study also examines the relative influence of state public expenditure on the performance index of health indicators of Assam with the help of linear regression model. The study is based on secondary data collected from Ministry of Health and family Welfare department of India, Planning Commission of India and Reserve Bank of India’s State Finance-A study of the Budget. The study reveals that performance of health indicators of Assam has been showing a positive trend over time and there are three break points in the performance index namely 2002, 2005, and 2009. It has found that there is a positive and significant impact of public health expenditure on the performance index of health indicators of Assam. So, public intervention is necessary especially through the NRHM in making healthcare service affordable by all in order to improve health outcomes of Assam.
KeywordsHealth performance index Health expenditure Bai–Perron test Assam
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