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Private Sector Services

Limited budgets in many developing countries can mean the curtailment or abandonment of publicly subsidized health care. To relieve this pressure, USAID works to involve the private sector in health care delivery to expand access to those who most need health services. Using market segmentation, USAID works to ensure that poorer populations receive subsidized or free public sector health care while those who are financially able to pay for health care go to private clinics, pharmacies, and retail stores for their services. USAID's work in this area involves identifying existing or potential investment opportunities in health and family planning services and providing technical assistance to support the development of private sector interest and capacity to take advantage of these opportunities. Many options can be pursued to meet this end, including strengthening networks of employer-based clinics, developing a rural health care network among agricultural cooperatives, expanding health service availability for informal sector workers, and promoting the development of private provider networks that could serve as the foundations of managed care systems.

 

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