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Sources and Uses of Health System Financing in Colombia - P4H Network

Sources and Uses of Health System Financing in Colombia

The health system in Colombia is financed with contributions to the contributory system from workers and employers, and with revenues from fiscal sources that include the General System of Participations, contributions from the National Budget, resources from specific consumption taxes and resources of the territorial entities.

The study evaluates the financing mechanisms of the health system in Colombia, differentiating the resources of fiscal, parafiscal and other sources used to cover the costs of the contributory and subsidized health systems. It should be noted that between 2011 and 2022, the health sector faced financial and administrative problems that increased the requirement of fiscal resources for its financing.

The main sources of financing for the system come from the contributions of employers and employees belonging to the contributory system and the different resources of fiscal origin. The system also receives contributions from the family compensation funds and from the financial returns generated by the administration of cash surpluses. Overall, the sources of resources registered a growing trend between 2011 and 2020, increasing from 4.4% to 6.3% of GDP. Beginning in 2019, the system received additional resources to fund the End Point Agreement and the national medical residency system, and then beginning in 2020 to address the Covid-19 pandemic.

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