Optimal Funds Flow: A Case Study of the Sustainability of the Ghana National Health Insurance Scheme

Abstract

The study was carried out to determine the state of National Health Insurance Scheme, the long term stability behaviour and the optimal investment policy for the fund. As a result, quarterly data for both inflows and outflows were modeled as vector autoregressive of order one (VAR (1)) process. Both the system and control matrix was identified and stability analysis was performed. The present state of the system however is not sustainable. It is therefore recommended that an optimal investment policy be adopted.