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Panama - P4H Network
Current Health Expenditure (CHE) as % Gross Domestic Product (GDP)8.5%CHE/GDP
Out-of-pocket (OOPS) spending as % of Current Health Expenditure (CHE)37.1%OOP/CHE
Domestic General Government Health Expenditure (GGHE-D) as % General Government Expenditure (GGE)22.2%GGHE-D/GGE
Gross Domestic Product (GDP), in constant (2020) US$ in millions (M), billions (B), or trillions (T)77BGDP (USD)
Population in thousands (K), millions (M) or billions (B)4.4MPopulation

The public, social security and private sectors combine to make up the health system in Panama. The public sector is financed through general and earmarked taxes. The Ministry of Health (MINSA) manages these resources and coordinates public health services. Social security, administered by the Social Security Fund (CSS), is financed by employer and employee contributions and provides comprehensive coverage to their insured population, including medical care, disability and pensions. The private sector includes insurers and health service providers that operate through direct payments or through voluntary private insurance.

Persistently high out-of-pocket health expenditure

Public health expenditure accounted for 5.86% of GDP in 2020, a figure that is very close to the 6% recommended by the Pan American Health Organization, and 21.7% of total public expenditure by 2021. Catastrophic health expenditure was estimated at 6.2% in 2017. [1]The UHC service coverage index for 2021 was 78.2.[2]

Health system fragmentation

Panama’s health policy and strategic guidelines 2016-2025 outlines the actions to be taken to tackle the challenges the health system faces. They include regional funding inequalities and fragmentation, and a lack of effective and sustainable coordination between MINSA and CSS that prevents the consolidation of an integrated and efficient system.

References

[1] World Health Organization, Global Health Expenditure Database, Indicators and Data (choose country)

[2] World Health Organization, Health Financing and Economics, WHO Health Financing Dashboard (choose country)