In the vast majority of developing countries, the non-state sector already serves between 30% and 80% of poor women seeking healthcare. Non-state actors include private for-profit companies and a wider range of informal for-profit health case providers. Other non-state actors include non-profit organisations such as non-governmental organisations (NGOs), faith-based organisations and community-based organisations.
The private sector and other non-state actors represent an important source of health care for all socio-economic groups, including the poorest. However, poor people are more likely to use lower quality services and commodities. The lack of regulation of health services, medication, contraceptives and other health commodities is often a concern.
In some settings, the NGO sector is very active in providing not for profit services. This is often to fill a gap in service provision due to neglect of; a certain service (e.g. abortion/sexual and reproductive health); certain geographical locations (e.g. remote rural communities); or certain groups (e.g. adolescents or sex workers). In some fragile states NGOs work to bridge the gaps left by the breakdown of government-run services.
Civil society organisations play an important role in reaching the poorest and marginalised, promoting empowerment and social change, and in enhancing accountability in health.
Whether provided as budget support, bilateral support or multilateral grants, the vast majority of DFID funding for health is currently channelled to public sector health services. The case for the public sector role in health is clear: the nature of health care means it cannot be left entirely to the market; the state needs to be involved in order to protect the public, avoid excessive costs and reach the poor.
Internationally, there is consensus on the need for regulation of the private and non-state sector, but less agreement on how far private providers should be expected to contribute to health care for the poor in the medium term.