Insights 15: Out-of-pocket expenditure in healthcare in Nepal
According to the World Health Organization, out-of-pocket (OOP) expenditure in healthcare is defined by WHO as a share of current health expenditure funded by households out-of-pocket. These payments are made at the point of service and are not reimbursed by any third party, such as insurance or government programs. High out of pocket spending can lead to financial hardship, especially for low-income households, and is a key indicator of the need for stronger financial protection mechanisms in health systems.
HERD International used data from multiple sources to provide the latest snapshot of OOP expenditure in Nepal. During the analysis process, poverty was measured in NLSS IV using Cost of Basic Needs (CBN) method, which looks at how much money people need to afford basic things like food, shelter, and clothing.