Top-down cost-allocation can help universal healthcare schemes in developing countries set better package rates

Governments looking to expand universal healthcare schemes need to ensure that appropriate rates are paid to providers. A top-down cost-allocation approach can evaluate the true expense of the procedures and help healthcare schemes offer more realistic rates that attract high-quality private hospitals and other providers. This, in turn, allows schemes to obtain reasonable and credible participation rates that are required for a system aiming to serve a larger population.