The ways a country
funds its health care delivery system could be an indicator of how much
importance is placed on the commodity and its consumers. The aim of this paper
is to evaluate the efficacy or otherwise of healthcare financing in Nigeria. To
achieve the objective of the study, different questionnaires were designed and
administered to the patients and health practitioners of a public hospital in
Ogun State. The total number of questionnaire administered was 50 copies (25
copies for the patients; 25 copies for the health practitioners) and all the
questionnaires were returned. A multiple regression analysis was adopted to
justify the effectiveness of healthcare financing options on health services in
Nigeria. The findings revealed that tax –based healthcare financing is
effective inthe purchase of health services in Nigeria. Also, the result
indicated that out-of-pocket healthcare financing has significant effect on
health services in Nigeria. It is therefore recommended that while out
–of-pocket may be necessary as means of purchasing health services, the
government should intensify the use of tax-based healthcare financing to
facilitate the provision of sustainable healthcare service in Nigeria.
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