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12/4/2010




                                                            Brazil: A Country of
                                                                Inequalities
                                                                                100
                                                                                                1188
                                                                                                 467
                                                      Among the highest          90
                                                                                                283



                Brazil:                               in income
                                                                                 80

                                                                                                126
                                                                                 70
                                                      concentration              60

A System for Universal Access to                         Gini = 60.7             50
                                                                                                 58


          Health Care                                 Important                  40


                                                      differences across         30

                                                                                                 29
                                                      economic levels in         20

                Compiled by Abhay Shukla                                         10
               <abhayshukla1@gmail.com>                  health                                  13
                                                                                  0
          based on various articles and documents        education
                                                                             Centiles of income distribution in Brazil.
                                                         employment                    Values in US dollars.




   Earlier Model – Three Sub
            Systems                                 Social Security
  Until the 1960s, health care services               Social security - the state began to
                                                      participate in the financing of public and
  in Brazil were organized according to               private companies’ social security benefits, to
  three subsystems,                                   provide health care to workers and their
                                                      dependants.
  Social security                                     Social security institutions were organized
                                                      according to professional categories and
  The Ministry of Health and                          according to a classic insurance model:
                                                      benefits depended on the ability of the
  The private sector                                  category of employee to pay.
                                                       Social security became the dominant system
                                                      for providing health care services in the
                                                      country




Ministry of Health                                  Private Sector
The Ministry of Health, organized in a              The private sector, was independent of
   parallel structure, was responsible for            the main subsystems and limited to
   preventive care. (vaccination                      services provided by autonomous
   campaigns, sanitation, and so forth)               physicians through direct payment
In terms of medical care, the Ministry
   was responsible only for the creation
   and maintenance of chronic care
   facilities




                                                                                                                          1
12/4/2010




Pre-reform Situation                              Growing Privatisation
Contributed to the creation of a specific model       Relationship between the public and private
  of health care in the 1970s, with basic             sectors was restricted almost exclusively to
  characteristics that would become the               contracting, based on fee-for-service payment,
                                                      with no control over the kind of medical care
  principal targets of health reform.                 provided.
  • high level of centralization                      Thus, medical care was characterized by high-
  • dichotomy of institutions within the health       cost, specialized, curative, and hospital-based
    care system                                       treatment.
  • growth in coverage through private                The absence of policies based on the actual
    provision of health care                          epidemiological profile and health needs of the
                                                      population meant that services concentrated in
  • incomplete coverage                               the more profitable regions, causing an imbalance
  • regressive financing                              in supply




Social Security Supporting Privatisation          An Inequitable Health System
  The National Institute of Medical Care and         Health System was highly privatized, already
  Social Security contracted more and more           established as a medico-industrial complex,
  often with third parties to care for the           Preeminently curative, concentrated in urban
  increasing clientele.                              nuclei and only in high-income neighborhoods.
  This gave the private sector a progressively       Access was unequal, as were the services
  more important role in service provision.          offered.
  As a result, the publicly owned network            Services were not available in all regions nor
  shrank and deteriorated. By 1976, for              were they prioritized.
  example, only 27% of all hospital beds             Main feature of health care management was
  were public, while 73% belonged to the             the non-existence of any public control over
  private sector                                     health policy.




   Social Security Crisis In
            1980s                                 The Health Movement
  Proliferation of expensive medical care         The Health Movement strategically associated the
  without a corresponding change in the              demand for health care services with the demand for
  method of financing;                               a democratic regime.
  A method of paying the private sector that
  stimulated an increase in expensive             The main principles of the Health Movement were that
  specialized procedures, as well as fraud;          health is a right of all citizens, to be provided by the
                                                     state through a universal health system based on
  Difficulty in controlling finances because of      integrity and equity in health care
  the disorganized structure of the system;
  Deterioration in the quality of services;       The effectiveness of the Movement required the
  A national economic crisis allied to a             construction of a political strategy that encouraged
  broader crisis of international scope.             civil-society organizations to demand the universal
                                                     right to health as an obligation of the state




                                                                                                                  2
12/4/2010




                                                                Mobilisation on Two Fronts
Mobilisation on Two Fronts
Mobilisation proceeded along two broad fronts.                 Second front consisted of the mobilization of
                                                               those organized sections of society for the
First front was the production of knowledge,                   democratization of health care.
   dedicated to promoting the political
   struggle, to the elaboration of case studies                This proceeded along various lines of action, ranging
                                                               from those professional areas linked to health care and
   about the inequities of access to health                    education, to unions, religious social groups, social
   care in Brazilian society and the inequities                movements, and popular organizations
   of the country’s health system.
                                                               Led essentially, by two political forces –
A Marxist perspective in health studies; the
   importance of Latin American Social                         The clandestine PCB (Brazilian Communist Party)
   Medicine                                                    The recently formed PT (Workers´ Party) - a mass left
                                                               political party




Some Demands for Reform                                     8th National Health Conference
  restructuring financing mechanisms to                     In 1986 at the 8th National health
  broaden the support base beyond the                          conference the reform became a policy
  payroll;
  reversing the process of privatization and                This brought together not only broad sectors
  establishing ways for the public sector to                   of civil society and representatives of the
  control the private sector;                                  most important institutions in the sector,
  giving greater decision-making and                           but also professional groups and political
  financing autonomy to the states and                         parties.
  municipalities; and
  introducing the participation of social                   The conference differed from previous ones in
  organizations in formulating and                             its participatory nature
  implementing health policies.




Guiding Principles of the                                   Guiding Principles of the Health
Health Care Reform                                          Care Reform
  Health as a right of citizenship. All Brazilian             Integrated and hierarchical health care organized to
  citizens acquired the right to health care provided by      provide integrated care; activities had to be based on the
                                                              epidemiological profile of the population. Provision of
  the state, thereby characterizing health as an activity     services had to be arranged with respect to the health care
  of public relevance.                                        hierarchy and had to provide people with universal access
  Equal access. All citizens should have equal access         to all levels of care.
  to health services, with no discrimination of any kind.     Social control and social participation. The system had
                                                              to be governed according to democratic criteria, and the
  Health as a component of social welfare. The                participation of civil society in its decisions was of
  health sector had to be integrated with the social          paramount importance.
  welfare system,                                             Decentralization and regionalism led to a redistribution
                                                              of the responsibilities between levels of government.
  A single administration for the public system.              Provision of health services had to become the
  creation of a single system to aggregate all health         responsibility of municipal governments, aided financially by
  services provided by federal, state, and municipal          the federal government and the states
  public institutions




                                                                                                                              3
12/4/2010




  The Brazilian “Unified Health                                    Three Health Care Delivery
  System” (SUS)                                                            Systems
                                                                Presently, three main care health delivery systems
      Created by the 1988 Constitution                             coexist in the country:
      Universal system                                             the SUS, which provides free care to all residents in
                                                                   the country (covers 75% of population)
         covering everyone independent of                          the Supplementary Health System (SHS) run by
         contribution                                              private healthcare insurance companies or health
                                                                   cooperatives (covering 35 million paying members)
         offering preventive and curative care,                    the Private Health System (PHS), totally private, used
         dealing with simple and complex                           only by the highest-income population
         problems
         decentralized at municipal level                       Health care funding in Brazil is drawn from various
                                                                   sources; two thirds are public and one third private




  Funding for SUS                                                          Sources of Funds
      Funding for the SUS is guaranteed by                         Federal Government still provides
      a Constitutional Amendment,                                  over 70 per cent of funding for the
      approved in 2000, according to which                         health sector, with States providing
      Federal funds should increase at a                           20 per cent and municipalities 10 per
      rate of 5% a year and States and                             cent or less.
      municipalities are obliged to spend                          Funds are collected through taxation.
      12% and 15% of their respective                              A tax levied on money transfers into
      revenues on health                                           bank accounts was introduced to
      Total national health expenditure is                         benefit the health sector.
      estimated at US$250 per capita.




             Social and Health Expenditure - Brazil             Private Sector has Higher
                               1980-81   1982-89      1990-95
                                                                Costs
Education
                                                                In 2007, the budget of the Ministry of Health
% GNP                             2.9        3.5        4.6
                                                                    was R$40 billion. This financed a system
Per capita                        33.5      57.7       100.5        that potentially covered about 143 million
Health                                                              beneficiaries of public health care
                                                                Around 40 million Brazilians have some type
% GNP                             3.2        3.5        4.6
                                                                    of private health insurance, R$60 billion
Per capita                        36.3      58.5       100.5        were spent by those affiliated to the private
Social security                                                     health care system.
% GNP                             6.4        6.6        8.5     It is therefore a myth that privatization
                                                                    reduces costs
Per capita                        73.3     108.8       185.6




                                                                                                                            4
12/4/2010




Distribution of Care                           Family health program - PSF
  Seventy-five per cent of the population is
                                                   Health facility with clear geographic
  covered by the SUS services.
                                                   coverage
  Public institutions provide 75 per cent of
                                                   Team formed by
  SUS out-patient care.
                                                      full-time general practitioner
  Between 70 and 80 per cent of SUS in-
                                                      registered nurse
  patient care is provided by contracted
                                                      nurse
  private services.
                                                      4 community health workers
  University hospitals are mainly public and
                                                   Looks after 1000 families (~3000 people)
  provide half of public hospital care.
                                                   Competitive salary levels




                                                      Large Scale People’s
PSF implementation                                        Participation
                                               A landmark of SUS is community participation,
    Initially deployed in                         guaranteed by a network of over 5,000
      areas not covered by a health center        Municipal Health Councils, 27 State Health
      poorest areas                               Councils, and the National Health Council,
    Next, existing health centers turned          involving some 100,000 individuals in this
    into PSF units                                voluntary work.
    Eventually, all primary health care        Most of the decisions on healthcare such as
    to be based on PSF                            budget, construction of health facilities,
                                                  implementation of health programs, etc.,
    Ministry of Health estimate:
                                                  must be approved by health councils
      ~35% population covered




           Health Councils                     Twelfth National Health Conference

All social sectors are represented in            The participatory process reaches its peak
                                                 during the National Health Conferences: the
   these councils:                               latest, held in December 2003, involved
   clientele or community                        approximately 300,000 people at three
   representatives (50%)                         levels: municipal, State, and national
                                                 The Twelfth National Health Conference
   health providers plus health                  was held in 2003 on the theme
   managers / officials (25%)                    "Health is a Right for All and the Duty of
   healthcare workers (25%)                      the State – the Health We Have and the
                                                 SUS We Want"was attended by nearly
                                                 5,000 people




                                                                                                  5
12/4/2010




       Trends in the Health
                                                              Mechanisms for Transferring
            Movement                                                    Funds
Disagreements over the manner in which public              Mechanisms for transferring funds from the
   participation is being institutionalized and
   bureaucratized have led to divisions in the people's       federal to state and municipal levels –
   movement for health.
An MOP faction has defended creation of a People's
                                                           Previously such transfers were based on
   Health Council as an autonomous forum to replace           calculation – either of existing
   the State Health Council.                                  infrastructure or service capacity and
The dilemma of the people's movements in playing the
   role of State's opponent while interacting with the        provision.
   State; when the councils were created, some             Starting in 1998 the transferring of funds
   movements, upon being called, refused to have
   institutionalized participation                            became automatic and based on a fixed
In 1992, at the Ninth National Health Conference,             per capita value for basic health services
   social movement members decided to create and
   maintain autonomous forums in order to preserve            — either individual or collective.
   their independence and avoid the possibility of the
   forums being treated as instruments.




                                                                      Distribution of Health Care Facilities
                                                                          Public                 Private
Two Types of Transfers
With the creation of the PSF (Family Health               Classes         n           %          n               %
  Care Program) two components,                           Basic units         6 038       98.0             131         2.0
  a fixed one (based on a set per capita
  calculation),                                           Health          14 129          98.5             189         1.5
  a variable component which allowed the                  centres
  transfer of federal funds to priority
                                                          Polyclinics         2 126       25.5          6 170        74.5
  programs. These include the PSF, the
Pharmaceutical Assistance Program and the
  Program for Controlling Nutritional                     Emergencies          188        65.5              98       34.5
  Deficiencies.
                                                          Hospitals           1377        21.0          5 155        79.0
                                                          Total           23 858          67%        11 843          33%




                                                                        Human Resources - Brazil
Shift from Private to Public
                                                                        1976                     1992
In 1995 the relation of public hospital
   beds per thousand people was 0.71
   while that of private hospital beds                                  Public        Private    Public          Private
   was 2.29/1,0000
In 2005 these proportions had changed                      Physician 54 201           62 259     65 205          106 356
   to 0.84 and 1.19 – trend of increase                    s
   in public beds compared to private

                                                           Nurses       30 833        40 200     46 785          48 242




                                                                                                                             6
12/4/2010




Organogram




                    7

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Brazil M F C 2011h

  • 1. 12/4/2010 Brazil: A Country of Inequalities 100 1188 467 Among the highest 90 283 Brazil: in income 80 126 70 concentration 60 A System for Universal Access to Gini = 60.7 50 58 Health Care Important 40 differences across 30 29 economic levels in 20 Compiled by Abhay Shukla 10 <abhayshukla1@gmail.com> health 13 0 based on various articles and documents education Centiles of income distribution in Brazil. employment Values in US dollars. Earlier Model – Three Sub Systems Social Security Until the 1960s, health care services Social security - the state began to participate in the financing of public and in Brazil were organized according to private companies’ social security benefits, to three subsystems, provide health care to workers and their dependants. Social security Social security institutions were organized according to professional categories and The Ministry of Health and according to a classic insurance model: benefits depended on the ability of the The private sector category of employee to pay. Social security became the dominant system for providing health care services in the country Ministry of Health Private Sector The Ministry of Health, organized in a The private sector, was independent of parallel structure, was responsible for the main subsystems and limited to preventive care. (vaccination services provided by autonomous campaigns, sanitation, and so forth) physicians through direct payment In terms of medical care, the Ministry was responsible only for the creation and maintenance of chronic care facilities 1
  • 2. 12/4/2010 Pre-reform Situation Growing Privatisation Contributed to the creation of a specific model Relationship between the public and private of health care in the 1970s, with basic sectors was restricted almost exclusively to characteristics that would become the contracting, based on fee-for-service payment, with no control over the kind of medical care principal targets of health reform. provided. • high level of centralization Thus, medical care was characterized by high- • dichotomy of institutions within the health cost, specialized, curative, and hospital-based care system treatment. • growth in coverage through private The absence of policies based on the actual provision of health care epidemiological profile and health needs of the population meant that services concentrated in • incomplete coverage the more profitable regions, causing an imbalance • regressive financing in supply Social Security Supporting Privatisation An Inequitable Health System The National Institute of Medical Care and Health System was highly privatized, already Social Security contracted more and more established as a medico-industrial complex, often with third parties to care for the Preeminently curative, concentrated in urban increasing clientele. nuclei and only in high-income neighborhoods. This gave the private sector a progressively Access was unequal, as were the services more important role in service provision. offered. As a result, the publicly owned network Services were not available in all regions nor shrank and deteriorated. By 1976, for were they prioritized. example, only 27% of all hospital beds Main feature of health care management was were public, while 73% belonged to the the non-existence of any public control over private sector health policy. Social Security Crisis In 1980s The Health Movement Proliferation of expensive medical care The Health Movement strategically associated the without a corresponding change in the demand for health care services with the demand for method of financing; a democratic regime. A method of paying the private sector that stimulated an increase in expensive The main principles of the Health Movement were that specialized procedures, as well as fraud; health is a right of all citizens, to be provided by the state through a universal health system based on Difficulty in controlling finances because of integrity and equity in health care the disorganized structure of the system; Deterioration in the quality of services; The effectiveness of the Movement required the A national economic crisis allied to a construction of a political strategy that encouraged broader crisis of international scope. civil-society organizations to demand the universal right to health as an obligation of the state 2
  • 3. 12/4/2010 Mobilisation on Two Fronts Mobilisation on Two Fronts Mobilisation proceeded along two broad fronts. Second front consisted of the mobilization of those organized sections of society for the First front was the production of knowledge, democratization of health care. dedicated to promoting the political struggle, to the elaboration of case studies This proceeded along various lines of action, ranging from those professional areas linked to health care and about the inequities of access to health education, to unions, religious social groups, social care in Brazilian society and the inequities movements, and popular organizations of the country’s health system. Led essentially, by two political forces – A Marxist perspective in health studies; the importance of Latin American Social The clandestine PCB (Brazilian Communist Party) Medicine The recently formed PT (Workers´ Party) - a mass left political party Some Demands for Reform 8th National Health Conference restructuring financing mechanisms to In 1986 at the 8th National health broaden the support base beyond the conference the reform became a policy payroll; reversing the process of privatization and This brought together not only broad sectors establishing ways for the public sector to of civil society and representatives of the control the private sector; most important institutions in the sector, giving greater decision-making and but also professional groups and political financing autonomy to the states and parties. municipalities; and introducing the participation of social The conference differed from previous ones in organizations in formulating and its participatory nature implementing health policies. Guiding Principles of the Guiding Principles of the Health Health Care Reform Care Reform Health as a right of citizenship. All Brazilian Integrated and hierarchical health care organized to citizens acquired the right to health care provided by provide integrated care; activities had to be based on the epidemiological profile of the population. Provision of the state, thereby characterizing health as an activity services had to be arranged with respect to the health care of public relevance. hierarchy and had to provide people with universal access Equal access. All citizens should have equal access to all levels of care. to health services, with no discrimination of any kind. Social control and social participation. The system had to be governed according to democratic criteria, and the Health as a component of social welfare. The participation of civil society in its decisions was of health sector had to be integrated with the social paramount importance. welfare system, Decentralization and regionalism led to a redistribution of the responsibilities between levels of government. A single administration for the public system. Provision of health services had to become the creation of a single system to aggregate all health responsibility of municipal governments, aided financially by services provided by federal, state, and municipal the federal government and the states public institutions 3
  • 4. 12/4/2010 The Brazilian “Unified Health Three Health Care Delivery System” (SUS) Systems Presently, three main care health delivery systems Created by the 1988 Constitution coexist in the country: Universal system the SUS, which provides free care to all residents in the country (covers 75% of population) covering everyone independent of the Supplementary Health System (SHS) run by contribution private healthcare insurance companies or health cooperatives (covering 35 million paying members) offering preventive and curative care, the Private Health System (PHS), totally private, used dealing with simple and complex only by the highest-income population problems decentralized at municipal level Health care funding in Brazil is drawn from various sources; two thirds are public and one third private Funding for SUS Sources of Funds Funding for the SUS is guaranteed by Federal Government still provides a Constitutional Amendment, over 70 per cent of funding for the approved in 2000, according to which health sector, with States providing Federal funds should increase at a 20 per cent and municipalities 10 per rate of 5% a year and States and cent or less. municipalities are obliged to spend Funds are collected through taxation. 12% and 15% of their respective A tax levied on money transfers into revenues on health bank accounts was introduced to Total national health expenditure is benefit the health sector. estimated at US$250 per capita. Social and Health Expenditure - Brazil Private Sector has Higher 1980-81 1982-89 1990-95 Costs Education In 2007, the budget of the Ministry of Health % GNP 2.9 3.5 4.6 was R$40 billion. This financed a system Per capita 33.5 57.7 100.5 that potentially covered about 143 million Health beneficiaries of public health care Around 40 million Brazilians have some type % GNP 3.2 3.5 4.6 of private health insurance, R$60 billion Per capita 36.3 58.5 100.5 were spent by those affiliated to the private Social security health care system. % GNP 6.4 6.6 8.5 It is therefore a myth that privatization reduces costs Per capita 73.3 108.8 185.6 4
  • 5. 12/4/2010 Distribution of Care Family health program - PSF Seventy-five per cent of the population is Health facility with clear geographic covered by the SUS services. coverage Public institutions provide 75 per cent of Team formed by SUS out-patient care. full-time general practitioner Between 70 and 80 per cent of SUS in- registered nurse patient care is provided by contracted nurse private services. 4 community health workers University hospitals are mainly public and Looks after 1000 families (~3000 people) provide half of public hospital care. Competitive salary levels Large Scale People’s PSF implementation Participation A landmark of SUS is community participation, Initially deployed in guaranteed by a network of over 5,000 areas not covered by a health center Municipal Health Councils, 27 State Health poorest areas Councils, and the National Health Council, Next, existing health centers turned involving some 100,000 individuals in this into PSF units voluntary work. Eventually, all primary health care Most of the decisions on healthcare such as to be based on PSF budget, construction of health facilities, implementation of health programs, etc., Ministry of Health estimate: must be approved by health councils ~35% population covered Health Councils Twelfth National Health Conference All social sectors are represented in The participatory process reaches its peak during the National Health Conferences: the these councils: latest, held in December 2003, involved clientele or community approximately 300,000 people at three representatives (50%) levels: municipal, State, and national The Twelfth National Health Conference health providers plus health was held in 2003 on the theme managers / officials (25%) "Health is a Right for All and the Duty of healthcare workers (25%) the State – the Health We Have and the SUS We Want"was attended by nearly 5,000 people 5
  • 6. 12/4/2010 Trends in the Health Mechanisms for Transferring Movement Funds Disagreements over the manner in which public Mechanisms for transferring funds from the participation is being institutionalized and bureaucratized have led to divisions in the people's federal to state and municipal levels – movement for health. An MOP faction has defended creation of a People's Previously such transfers were based on Health Council as an autonomous forum to replace calculation – either of existing the State Health Council. infrastructure or service capacity and The dilemma of the people's movements in playing the role of State's opponent while interacting with the provision. State; when the councils were created, some Starting in 1998 the transferring of funds movements, upon being called, refused to have institutionalized participation became automatic and based on a fixed In 1992, at the Ninth National Health Conference, per capita value for basic health services social movement members decided to create and maintain autonomous forums in order to preserve — either individual or collective. their independence and avoid the possibility of the forums being treated as instruments. Distribution of Health Care Facilities Public Private Two Types of Transfers With the creation of the PSF (Family Health Classes n % n % Care Program) two components, Basic units 6 038 98.0 131 2.0 a fixed one (based on a set per capita calculation), Health 14 129 98.5 189 1.5 a variable component which allowed the centres transfer of federal funds to priority Polyclinics 2 126 25.5 6 170 74.5 programs. These include the PSF, the Pharmaceutical Assistance Program and the Program for Controlling Nutritional Emergencies 188 65.5 98 34.5 Deficiencies. Hospitals 1377 21.0 5 155 79.0 Total 23 858 67% 11 843 33% Human Resources - Brazil Shift from Private to Public 1976 1992 In 1995 the relation of public hospital beds per thousand people was 0.71 while that of private hospital beds Public Private Public Private was 2.29/1,0000 In 2005 these proportions had changed Physician 54 201 62 259 65 205 106 356 to 0.84 and 1.19 – trend of increase s in public beds compared to private Nurses 30 833 40 200 46 785 48 242 6