Abstract

Healthcare financing remains a persistent challenge in both developed and developing economies, particularly under conditions of inflationary pressure. Rising healthcare costs, currency fluctuations, and reduced purchasing power undermine the sustainability of traditional financing models, exposing vulnerabilities in the accessibility, equity, and quality of care. This paper proposes a comprehensive framework for inflation-resilient healthcare financing that integrates value-based care principles with targeted subsidy mechanisms. The framework is designed to mitigate the adverse effects of inflation while enhancing efficiency, accountability, and patient outcomes. Value-based care shifts the emphasis from volume-driven reimbursement to performance metrics, incentivizing providers to deliver cost-effective, high-quality care. By aligning payment structures with measurable health outcomes, the model ensures that resources are utilized efficiently, reducing unnecessary expenditures that inflation often exacerbates. Complementing this, subsidy mechanisms are strategically deployed to protect vulnerable populations from catastrophic health spending. These subsidies are indexed to inflationary trends and supported by transparent fiscal policies, ensuring that affordability is maintained even during economic shocks. The framework also incorporates adaptive financing tools such as dynamic pricing, public-private partnerships, and outcome-linked insurance schemes to strengthen system resilience. A multi-level governance approach emphasizes accountability, stakeholder participation, and data-driven monitoring to balance cost containment with equity objectives. Through comparative analysis, the framework demonstrates applicability in diverse healthcare contexts, particularly in low- and middle-income countries facing heightened inflationary volatility. Ultimately, the integration of value-based care and subsidy mechanisms within an inflation-responsive financing structure provides a sustainable pathway to safeguard health systems, protect household incomes, and promote long-term financial stability. This paper contributes to the broader discourse on healthcare financing reform by offering a practical, adaptable, and evidence-driven model that aligns with global health priorities, including universal health coverage and sustainable development goals.