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Who Benefits from Public Healthcare Subsidies in Egypt?

Author

Listed:
  • Ahmed Shoukry Rashad

    (Department of Economics, Philipps-Universität Marburg, Marburg 35037, Germany
    Department of Economics, Faculty of Commerce, Damanhour University, Damanhour 22514, Egypt)

  • Mesbah Fathy Sharaf

    (Department of Economics, Faculty of Commerce, Damanhour University, Damanhour 22514, Egypt
    Department of Economics, Faculty of Arts, University of Alberta, Edmonton, AB T6G 2H4, Canada)

Abstract
Direct subsidization of healthcare services has been widely used in many countries to improve health outcomes. It is commonly believed that the poor are the main beneficiaries from these subsidies. We test this hypothesis in Egypt by empirically analyzing the distribution of public healthcare subsidies using data from Egypt Demographic and Health Survey and Egypt National Health Accounts. To determine the distribution of public health care subsidies, we conducted a Benefit Incidence Analysis. As a robustness check, both concentration and Kakwani indices for outpatient, inpatient, and total healthcare were also calculated. Results show some degree of inequality in the benefits from public healthcare services, which varied by the type of healthcare provided. In particular, subsidies associated with University hospitals are pro-rich and have inequality increasing effect, while subsidies associated with outpatient and inpatient care provided by the Ministry of Health and Population have not been pro-poor but have inequality reducing effect (weakly progressive). Results were robust to the different analytical methods. While it is widely perceived that the poor benefit the most from health subsidies, the findings of this study refute this hypothesis in the case of Egypt. Poverty reduction measures and healthcare reforms in Egypt should not only focus on expanding the coverage of healthcare benefits, but also on improving the equity of its distribution.

Suggested Citation

  • Ahmed Shoukry Rashad & Mesbah Fathy Sharaf, 2015. "Who Benefits from Public Healthcare Subsidies in Egypt?," Social Sciences, MDPI, vol. 4(4), pages 1-15, November.
    • Handle: RePEc:gam:jscscx:v:4:y:2015:i:4:p:1162-1176:d:59440
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    References listed on IDEAS

    as
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    Cited by:

    1. Maia Sieverding & Rania Roushdy & Rasha Hassan & Ahmed Ali, 2019. "Perceptions of Service Access in a Context of Marginalization: The Case of Young People in Informal Greater Cairo," Working Papers 1289, Economic Research Forum, revised 2019.
    2. Yasmin A. MOBASHER, 2022. "SWOT Analysis of the Health System in Egypt," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(3), pages 284-291, October.
    3. Badran, Mona Farid, 2017. "Electronic Health Records Prospects in Egypt: A Demand-Side Perspective," 28th European Regional ITS Conference, Passau 2017 169447, International Telecommunications Society (ITS).
    4. Jerry D. Marx, 2016. "Healthy Communities: What Have We Learned and Where do We Go from Here?," Social Sciences, MDPI, vol. 5(3), pages 1-4, August.
    5. Joana Silva & Victoria Levin & Matteo Morgandi, 2013. "Inclusion and Resilience : The Way Forward for Social Safety Nets in the Middle East and North Africa," World Bank Publications - Books, The World Bank Group, number 14064.

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