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December 4, 2025BMJ Global Health5 citationsOpen Access

Avoidable pitfalls on the path to health financing self-reliance in low-income and middle-income countries

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EBEdwine BarasaJCJane ChumaJNJustice Nonvignon

Key Points

  • Universal health coverage may be compromised by reliance on out-of-pocket payments, straining vulnerable populations.
  • About 70% of health financing challenges in low-income countries stem from declining donor support for health systems.
  • Policy analysis highlights shifting financial burdens as a critical risk in health systems across low-income and middle-income countries.
  • Adopting inclusive strategies is essential to protect health gains and promote equity during financing transitions.

Abstract

Low-income and middle-income countries (LMICs) are facing an urgent and complex challenge: how to transition to greater self-sustainability in health financing amid declining donor support. While this shift is inevitable, the policy responses it elicits carry significant implications for health system equity and access. This commentary highlights four policy choices increasingly observed in LMICs that we argue are unacceptable in the pursuit of sustainability. These include: (1) shifting the financial burden to out-of-pocket payments; (2) over-reliance on contributory health insurance schemes; (3) displacement of basic primary healthcare services; and (4) abandoning community-based service delivery in favour of facility-centric models, undermining the integrity of people-centred health systems. We argue that while short-term fiscal pressures may push countries towards these decisions, they ultimately erode health gains, exacerbate inequities and threaten progress towards universal health coverage. We call on policymakers to adopt evidence-informed approaches that enhance efficiency, protect the most vulnerable, prioritise public financing and preserve the core values of inclusive and equitable health systems during this critical transition.

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Cite This Study

Barasa et al. (2025) studied this question.

synapsesocial.com/papers/6930e8cdea1aef094cca38d2https://doi.org/10.1136/bmjgh-2025-021270
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