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7/30/2019 Factors Affecting out of Pocket Health Care Expenditure among Sudanese Households
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การประชมว ชาการบั ณฑ ตศ กษาระดั บชาต ครั งท 2 วั นศกร ท 17 พฤษภาคม พ.ศ.2556 ณ โรงแรมร ชมอนด จั งหวั ดนนทบร
[236]
Factors Affecting out of Pocket Health Care Expenditure
among Sudanese Households
Aamer Basheir Mohammed Ghaleb*
Abstract
Health is a human right yet out of pocket Health expenditure seems to be a factor that
impoverishes people in Sudan. OBJECTIVE: This study was conducted to identify factors affecting
individual OOP health expenditure for different types of health care and total health care expenditure.
This study using Secondary data from Sudan Household health utilizations and expenditure survey 2010.a
total of 15000 households and 75184 individuals were included in two types of regressions. OLS, seeming
uncorrelated regression and Tobit were used for all related type of care (non-chronic care, chronic care,
preventive care, dental care, and health expenditure abroad). Variables that usually positively impact
OOP spending include age groups, education level, widowed, land capacity, hospital rate, bed rate.
Variables that usually negatively impact OOP spending include divorce, type of medical personnel as well
as some of state dummies. Recall that the OOP variables come from the summation of treatment cost,
cost of food, and accommodation for the co patient and transportation cost. Transportation costs seem
to be very high for all type of care. This suggests that the distribution of medical personnel and medical
facilities is unequal.
Key Word: Sudan, Out of Pocket, Health Expenditure, Factors, Household
Introduction
Sudan as one of the low income countries tries achieving its Millennium Development Goals
(MDGs) in reducing poverty by controlling the factors that lead to it. the poor need to divide their low
income among basic necessities, including food, shelter and health care and it is possible that health care
could lead to catastrophic expenditure for the household (Mustafa; & Alsiddiq;, 2007). The financing of
health care is a complex issue for policy makers. The Millennium Development Goals (MDGs) may be
difficult to attain. This is an issue of serious concern and highlights the need for this kind of study. Many
scholars, decision makers and politicians have started to doubt whether they can reach the level that
covers the needs of their citizen or not.
* Master’s student, Master of Science in Health Economics and Health Care Management Program, Chulalongkorn University;
E-mail: [email protected]
7/30/2019 Factors Affecting out of Pocket Health Care Expenditure among Sudanese Households
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In 2012, the poor people about 44.8% of the population of Sudan North. The unemployment
rate stood at 17% for the overall population, and it was 25.4%. For age group (15-24), the nutrition
situation in Sudan is also poor, characterized by a high number of underweight children and children with
chronic malnutrition, as well as persistently increasing levels of acute malnutrition. Nationally, one third
(32.2%) of children under five years old in Sudan was severely underweight (WHO, 2012).
The out-of-pocket health expenditure (OOPHE) made by individuals had been increased as
percentage from total health expenditure in the past 25 years (You and Kobayashi 2011). Many factors
affect Out of Pocket health care expenditure (OOPHE) of individuals and households. Whether people are
healthy or not is determined by their environment. To a large extent, factors such as where we live, age,
gender, the status of our environment, genetics, income, education level, and relationships with friends
and family all have considerable impact on health, as well as in OOPHE whereas the more commonly
considered factors such as access and use of health care services often have less of an impact (Mustafa; &
Alsiddiq; 2007).
Life expectancy rate was 56.6 years old at birth; it was very low. The crude death rate was 11.5
per 1000 people, which was not high at all. Total fertility rate was 5.6 per woman. So there was decrease
in the life expectancy. Also for children under five years old mortality rate was 112 per 1000 population,
which was very high (WHO 2008; WHO 2009)
Out Of Pocket health expenditure made up a very high percentage of private health care
expenditure in Sudan (around 96%). However, the income share held by the richest 20% of the
population was 42%. This suggests that the richest 20% had almost half of the nation’s wealth. The Gini
coefficient was 35.29, which seems to indicate a relatively equal society. The Gini coefficient was
relatively low not because there was equality but because most of the population in Sudan was poor;
according to the national poverty line, 44.8% of the population was poor (in 2009). For rural residents it
was about 50%, and, it was over 26% for urban residents. The high level of OOPHE (96.17%) lead us to
say that for those who live under the poverty line in urban and rural areas are likely to suffer from high
OOPE (World Data Bank, 2012).
. Table 1: Sudan health expenditure as a percentage of GDP in 1995 – 2009
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Source: World Health Organization National Health Account database 2013
Table 1 shows that public health expenditures increased when compared with Total Health
Expenditures (THE) during the period 1999-2008 but decreased in the same period when compared with
Government Expenditures (GE).It possible that no additional resource was allocated to the health sector
during this period. The contribution of public sector was also less than the private sector as percentage of
GDP; consistent with the fact that out of pocket health expenditure (OOPHE) was the main source of
health expenditure. And according to the Millennium Development Goals (MDGs) health was one of the
human rights and the government should prevent its citizen from the effects of the health status that
caused poverty.
Objective and Scope
Objective
The overall objective for this study is to
1. Determine the socioeconomic factors that affect Out of Pocket health expenditure of
individuals in Sudan.
2. And it’s a specific objective is to identify factors that affect Out Of Pocket health
expenditure for various types of health care at the individual level
Scope
This study will be based on the Sudan household Health Utilization and Expenditure Survey
(SHHUES). This survey was conducted as part of Knowledge Attitude and Practice (KAP) in 2010 and took
place in 15 states. The sample taken from each state was equal to 1000 households, and the total
number of individuals in this survey was equal to 75184 persons. The unit of analysis is the individual.
7/30/2019 Factors Affecting out of Pocket Health Care Expenditure among Sudanese Households
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การประชมว ชาการบั ณฑ ตศ กษาระดั บชาต ครั งท 2 วั นศกร ท 17 พฤษภาคม พ.ศ.2556 ณ โรงแรมร ชมอนด จั งหวั ดนนทบร
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Conceptual Framework
This study includes urban and rural residents and tries to assess factors that affect health
expenditure according to different types of diseases and services as well as other related expenditure like
transportation, the expense for the co-patient (the care taker) and other indirect health expenditure.
First of all a regression of OLS well be used to determine factors that affect OOP spending at individual
health factors level, community health factors level and as well as socio-economics factors level. The
OLS model is very common used in determine the effect of independent variable in the dependent
variable to conduct the parameters and its sign to show the direction of the effect. The Tobit model also,
will be used to see if there was any difference in the results if we mentioned the data as pay or not.
I use secondary data from Sudan Household Health Utilizations and Expenditures Survey 2010.
The Household survey was conducted in three rounds to see the effect of seasonality on the impact of
disease and how people utilize the health facilities in the same year. Note that because the data were
collected in the same year and information of the same person does not vary too much, no panel data
analysis will be conducted in this study.
The survey has been conducted as part of Knowledge Attitude and Practice (KAP) to assess the
situation of expenditure on health care. Survey tools are based on the models and standards developed
by the global MICS project, to collect information on the situation of utilizing and spending in different
type of care in 15 states.
The survey contains healthcare expenditure data for various categories of treatment like
hospitalization care, outpatient care, birth delivery and chronic illness etc. The reference period however
is different for each of the cases, i.e., the recall period of a year is for both hospitalization care and
childbirth; three months for outpatient care and a period of one-month for chronic illness. All information
is based on the last episode of illnesses (reported morbidity). Household health care expenditure is
defined as the out-of-pocket expenditures on drug and medicines, consultation fees, hospital bed
charges, transport charges to the treatment site and daily leaving cost, including food and lodging for the
escorts of the ailing household member.
Variables used in the analysis:
The dependent variables are out of pocket health expenditures (OOPHE) on different type of
care. Different regressions will be run on 1) total OOP expenditure, 2) inpatient care OOP expenditure
(hospitalization), 3) chronic care OOP expenditure, 4) non-chronic care OOP expenditure, 5) preventive
care OOP expenditure and 6) dental care OOP expenditure
. And independent variable as the table below
Table 2: independent variable
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Literature Review
The literature review contains two parts first one in health expenditure and the second is health
care subsidies. The health expenditure was studied in many articles at different levels (national versus
state versus individuals). The main conclusion from this part is Hypertension and diabetes were the
highest type’s chronic diseases among population in the high wealth quintile, and malnutrition was high
among the lowest quintiles. Age, gender, education, and residence are the main social factors that have
impact on OOP health expenditure.
I reviewed many studies for the subsidies for health sector. I find almost all the subsidies
concentrate only for the public sector. Sometimes the government gives subsidy to individuals according
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to their health situation. According to the literature main effects of health subsidies are increasing health
expenditure.
Health expenditure is sensitive to change in income; the poor uninsured people had to pay more
out of pocket than richest and insured people (Parker and Wong 1997)
The current food consumption, and children’s education, chronic illness, hospitalizations, and
institutional birth deliveries were main factors leading to catastrophic expenditure (Swadhin Monda, Barun
Kanjila et al. June 2010).
Access to health facilities was identified as a factor affecting health expenditure due to increase
in cost of transportation. (Ke Xu, Chris James et al. 2006)
In another study from Botswana, gender and education status of household head were found to
influence the probability of facing catastrophic health expenditure. (Akinkugbe, Chama-Chiliba. et al. 2012)
Studies on the impact of new drug discount card and prescription benefits on health care expenditures
over low income individuals in Northern Virginia found a decrease in medication expenditures for those
enrolled in all programs for all income categories more than those without pharmaceutical assistance.
(Havrda, Omundsen et al. 2005).
Yardim, M. S Cilingiroglu, N. Yardim, N (2010), in their study identified household factors that led
to catastrophic health expenditure. They illustrated that the socioeconomic factors that were related with
high health expenditures were the head’s insurance status, rural residence, having preschool children,
and those elderly people and disabled all increasing the risky catastrophic expenditure (Yardim,
Cilingiroglu et al. 2010)
Research Methods
Econometric models
Two models will be used in analyzing the data. The first regression is OLS, the second one is
Tobit. The same set of independent variable will be used in the two models
Ordinary Least Squares (OLS) model: The first model is Ordinary Least Squares (OLS) model. This
model has classical assumptions. In this model we assume that the error term is distributed randomly
and the standard error is not a function of the observed variables. The error term has mean 0 and
variance σ2. The dependent and independent variable should have the property of linearity in the
parameters (Gujarati 2003). The specification as follows:
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Where HOOPHEij is a continuous measure of household out of pocket health expenditure, where
i indicate the individual and j indicates the type of healthcare 1) non-chronic care, 2) chronic, 3) hospital
care, 4) preventive care, 5) health care abroad. Independent variables as in table (2) and u is the error
term
Tobit model: According to Gujarati (2004) Tobit takes the following form
Y*i = β1 + β2Xi + ui if Y*i > 0
= 0 otherwise
Where Y is household out of pocket health expenditure, where i indicate the individual and j
indicates the type of healthcare 1) non-chronic care, 2) chronic care 3) hospital care, 4) prevention care,
5) health care abroad. Independent variables as in table (2) and δ is the error term. Here the
independent variable is non-negative and the specification is:-
Where HOOPHE is household health expenditure and the independent variables as in table (2) and u is
the error term.
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Research Results
According to the research methodology, 75184 persons were interviewed. Data were collected
about their health expenditure for different types of care in 2010. This chapter answers the research
question “What are household and individual characteristics that affect individual out -of-pocket health
care expenditure?” Two different types of regression were to find out each factor that affects out of
pocket health care expenditures. The first one is OLS model and the second is Tobit model. In both of
them, log values of the dependent variables are used to capture the relationship between the
dependent and the independent variables. The results between the two models are quite similar.
The Ordinary lest squire OLS results: For OLS I also run a seemingly uncorrelated analysis between
different types of OOP to see if the error terms of different types of OOP are correlated. But I found that
there is no change in the results, so I can say there is no correlation between the error terms. Individuals
seem to choose to spend OOP on different types of care independently.
Table 3: The Ordinary lest squire OLS results
variable TOOP ACOOP CROOP PROOP HSOOP DNOOP
Age group
(05-15)
0.28***
(0.04)
0.05***
(0.02)
0.04***
(0.02)
-0.07***
(0.01)
0.02
(0.03)
0.05***
(0.02)
Age group
(16-39)
0.84***
(0.05)
0.26***
(0.03)
0.20***
(0.03)
-0.04***
(0.02)
0.22***
(0.03)
0.26***
(0.03)
Age group
(40-59)
0.72***
(0.06)
0.33***
(0.03)
0.61***
(0.03)
-0.44***
(0.02)
0.07
(0.04)
0.33***
(0.03)
Age group (60+)0.81***
(0.07)
0.12***
(0.03)
0.88***
(0.04)
-0.43***
(0.02)
0.17***
(0.04)
0.12***
(0.03)
Sex0.06***
(0.02)
0.05
(0.01)
-0.01
(0.01)
0.12***
(0.01)
-0.01
(0.02)
0.05***
(0.01)
Primary education0.28***
(0.03)
0.13***
(0.02)
0.06***
(0.02)
0.04***
(0.01)
0.00
(0.02)
0.13***
(0.02)
Secondary education0.34***
(0.05)
0.28
(0.03)
0.03
(0.03)
0.07***
(0.02)
-0.02
(0.03)
0.28***
(0.03)
University education0.35***
(0.07)
0.45*
(0.04)
-0.01
(0.04)
0.16***
(0.02)
-0.05
(0.05)
0.45***
(0.04)
Urban/rural area0.10***
(0.03)
0.02***
(0.01)
0.03***
(0.01)
0.01
(0.01)
-0.02
(0.02)
0.02
(0.01)
Married0.36***
(0.04)
0.11
(0.02)
0.00
(0.02)
0.43***
(0.02)
0.05*
(0.03)
0.11***
(0.02)
Divorced 0.00 0.06 -0.02 0.21*** -0.11 0.06
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(0.12) (0.06) (0.06) (0.04) (0.08) (0.06)
Widowed0.27***
(0.08)
0.09
(0.04)
0.00
(0.04)
0.34***
(0.03)
0.00
(0.05)
0.09***
(0.04)
Land capacity0.00***
(0.00)
0.00***
(0.00)
0.00
(0.00)
0.00***
(0.00)
0.00***
(0.00)
0.00***
(0.00)
Hospital rate0.46***
(0.05)
0.07***
(0.03)
-0.02
(0.03)
0.13***
(0.02)
0.14***
(0.03)
0.07***
(0.03)
Bed rate0.00***
(0.00)
0.00
(0.00)
0.00***
(0.00)
0.00***
(0.00)
0.00***
(0.00)
0.00
(0.00)
Consult doctor1.50***
(0.05)
-0.08***
(0.03)
-0.19***
(0.03)
-0.04***
(0.02)
-0.13***
(0.03)
-0.08***
(0.03)
Consult medical
assistant
1.44***
(0.09)
-0.09***
(0.05)
-0.10***
(0.05)
-0.06**
(0.03)
-0.14***
(0.06)
-0.09***
(0.05)
Consult other person2.39***
(0.12)
-0.10***
(0.06)
-0.24***
(0.07)
-0.12***
(0.04)
-0.07
(0.08)
-0.10
(0.06)
Live in River Nile state-0.02
(0.07)
-0.09***
(0.03)
0.16***
(0.04)
-0.06***
(0.02)
-0.01
(0.04)
-0.09***
(0.03)
live in Red Sea state-0.10
(0.06)
-0.03
(0.03)
-0.10***
(0.03)
0.05***
(0.02)
0.01
(0.04)
-0.03
(0.03)
Live in Kassala state0.26***
(0.06)
0.02***
(0.03)
0.06*
(0.03)
0.05***
(0.02)
0.07
(0.04)
0.02
(0.03)
Live in Gadareif state-0.35***
(0.07)
-0.03
(0.03)
-0.19***
(0.04)
-0.09***
(0.02)
-0.06
(0.04)
-0.03
(0.03)
Live in White Nile state0.33***
(0.07)
0.09***
(0.04)
-0.06
(0.04)
-0.02
(0.03)
0.05
(0.05)
0.09***
(0.04)
Live in Sinnar state0.10
(0.06)
-0.05***
(0.03)
-0.16***
(0.03)
0.09***
(0.02)
0.14***
(0.04)
-0.05
(0.03)
Live in Blue Nile state-0.43***
(0.06)
-0.08***
(0.03)
-0.17***
(0.03)
-0.09***
(0.02)
-0.03
(0.04)
-0.08***
(0.03)
Live in North Kordofan
state
0.11
(0.06)
-0.05***
(0.03)
-0.07***
(0.03)
0.07***
(0.02)
0.06
(0.04)
-0.05
(0.03)
Live in South Kordofan
state
-0.23***
(0.06)
0.01
(0.03)
-0.10***
(0.03)
-0.08***
(0.02)
-0.04
(0.04)
0.01
(0.03)
Live in North Darfor 0.20*** 0.06*** 0.07* -0.04 0.01 0.06*
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state (0.07) (0.03) (0.04) (0.02) (0.04) (0.03)
Live in South Darfor
state
0.10
(0.07)
0.08
(0.04)
0.04
(0.04)
-0.04
(0.03)
0.02
(0.05)
0.08***
(0.04)
Constant -.0119234 .0589287 -.0845668 -.0702697 .1342322 -.1262843
Number of observation 27078 27078 27078 27078 27078 27078
R-squared 0.1562 0.1797 0.0936 0.0940 0.0116 0.0669
Adj R-squared 0.1553 0.1789 0.0927 0.0930 0.0105 0.0659
The coefficients, standard errors and the significance related to the independent variables from
OLS run on the log value of the dependent variables. The dependent variable include total OOP health
expenditure, non-chronic care OOP expenditure, chronic care OOP expenditure, hospitalization care OOP
expenditure, preventive care OOP expenditure, OOP health expenditure abroad, and dental care OOP
expenditure.
The equations were run only on those reported to sick. Therefore, there were 27078 observations
(out of 75184 observations) i.e. 36% of the sample. This means one in three people sought care for one
or more type of diseases during the identified period in the survey. This could imply that there was a very
bad health situation overall in the country. If we connect this with situation in Sudan where OOP reached
64.3% from THE, and poverty was high at 44.8% with per capita health expenditure of US$111, the results
suggest that there were be catastrophic health expenditure among Sudanese households especially in
rural areas which represent 69% of the population in Sudan, of who 57.6 % were poor.
The age groups in general have significant effect on different types of care. OOP health
expenditure increase when age increases. Only in preventive care is the relationship negative. This means
the preventive care will decrease when age increases. This is consistent with the real situation that
immunization is for children less than five years old. Gender seems to not have any with chronic and
non-chronic care OOP but it has a high correlation with total health OOP expenditure and dental care
OOP expenditure. Education level increases health expenditure in total. But it does not have a significant
impact on chronic or non-chronic care. For preventive care there is a positive relationship. In urban areas
there is a high OOP for every type of health care. There is a high OOP spending on preventive care, dental
care and total OOP health expenditure for married and widowed persons. Divorced people seem to have
a high OOP spending on preventive care only. Land capacity has an effect on all types of diseases except
chronic care but the effect is very small. The number of hospitals in the area has a high positive and
significant effect on all kinds of care except chronic care. This means hospitals play a very good role to
provide care for the population around their areas, especially chronic care. If individuals consulted a
medical doctor, OOP expenditure would increase. Living in any state far away from Khartoum state seems
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to decrease total OOP expenditure and increase the burden of acute and chronic care.
The result of the Tobit model:
variable TOOP ACOOP CROOP PROOP HSOOP DNOOP
Age group (05-15)1.09***
(0.10)
1.04***
(0.13)
3.72***
(0.44)
-5.49***
(0.59)
0.49
(0.46)
6.32***
(0.54)
Age group (16-39)2.39***
(0.12)
1.03***
(0.17)
6.55***
(0.46)
-2.33***
(0.45)
3.26***
(0.54)
9.07***
(0.55)
Age group (40-59)2.10***
(0.14)
0.66***
(0.20)
10.08***
(0.51)
-7.88***
(0.55)
1.04
(0.63)
9.49***
(0.58)
Age group (60+)2.23***
(0.16)
0.30
(0.23)
11.44***
(0.52)
-8.65***
(0.66)
2.30***
(0.68)
7.74***
(0.60)
Sex0.17
(0.06)
-0.10
(0.08)
-0.11
(0.18)
2.74***
(0.22)
-0.04
(0.27)
0.58***
(0.16)
Primary education0.70***
(0.08)
0.47***
(0.11)
0.47***
(0.20)
0.70***
(0.23)
-0.17
(0.33)
1.31***
(0.18)
Secondary education0.71***
(0.12)
0.24
(0.17)
0.16
(0.30)
0.57***
(0.33)
-0.58
(0.51)
2.09***
(0.26)
University education0.65***
(0.16)
-0.34
(0.24)
-0.29
(0.42)
1.47***
(0.43)
-1.13
(0.74)
2.71***
(0.34)
Urban/rural area0.45***
(0.06)
0.53***
(0.09)
0.71***
(0.18)
0.38***
(0.19)
-0.13
(0.28)
0.43***
(0.16)
Married0.78***
(0.10)
-0.28
(0.14)
-0.02
(0.28)
6.96***
(0.41)
0.87
(0.44)
0.90***
(0.22)
Divorced-0.01
(0.28)
-0.62
(0.40)
-0.01
(0.66)
2.43***
(1.06)
-1.44
(1.33)
0.48
(0.60)
Widowed0.62***
(0.19)
-0.09
(0.27)
-0.03
(0.43)
5.37***
(0.73)
0.32
(0.82)
0.84***
(0.42)
Land capacity0.01***
(0.00)
0.01***
(0.00)
0.00
(0.00)
0.02***
(0.00)
0.02***
(0.00)
0.01***
(0.00)
Hospital rate1.18***
(0.12)
0.77***
(0.17)
-0.25
(0.33)
2.90***
(0.36)
2.09***
(0.54)
0.88***
(0.30)
Bed rate0.00*
(0.00)
0.00***
(0.00)
0.02***
(0.01)
-0.02***
(0.01)
-0.02
(0.01)
0.00
(0.01)
Consult doctor 3.93*** 6.86*** -4.72*** -0.92*** -2.49*** -1.00***
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(0.12) (0.15) (0.67) (0.44) (0.68) (0.39)
Consult medical
assistant
4.30***
(0.19)
7.09***
(0.23)
-3.30***
(1.06)
-2.51***
(1.02)
-3.94***
(1.30)
-1.55***
(0.74)
Consult other person4.39***
(0.26)
7.97***
(0.30)
-3.06***
(0.99)
-3.18***
(1.22)
-1.35
(1.37)
-1.34
(0.76)
Live in River Nile state0.18
(0.16)
-0.21***
(0.22)
1.69***
(0.36)
-0.96
(0.54)
-0.14
(0.72)
-0.41
(0.39)
live in Red Sea state0.00
(0.16)
0.11
(0.23)
-1.41***
(0.48)
2.28***
(0.60)
0.89
(0.74)
0.03
(0.44)
Live in Kassala state1.01***
(0.15)
1.47***
(0.20)
0.79***
(0.40)
2.72***
(0.53)
2.15***
(0.65)
1.01***
(0.38)
Live in Gadareif state-0.51***
(0.16)
0.37
(0.22)
-2.99***
(0.56)
-0.28
(0.50)
-0.32
(0.72)
0.18
(0.42)
Live in White Nile state1.03***
(0.17)
1.48***
(0.23)
-0.82
(0.50)
1.35***
(0.53)
1.33
(0.75)
1.42***
(0.43)
Live in Sinnar state0.65***
(0.13)
1.06***
(0.18)
-1.61***
(0.40)
3.11***
(0.41)
2.72***
(0.57)
0.06***
(0.35)
Live in Blue Nile state-0.59***
(0.14)
-0.07
(0.19)
-2.17***
(0.44)
-0.39
(0.48)
0.69
(0.61)
-0.08
(0.37)
Live in North Kordofan
state
0.40
(0.17)
0.67
(0.23)
-1.20***
(0.49)
3.65***
(0.59)
1.64***
(0.74)
-0.89
(0.50)
Live in South Kordofan
state
-0.37***
(0.15)
-0.15
(0.21)
-1.52***
(0.44)
0.00
(0.55)
-0.07
(0.68)
0.52
(0.38)
Live in North Darfor
state
0.66***
(0.17)
0.40
(0.24)
0.58
(0.47)
0.92
(0.68)
0.98
(0.79)
1.25***
(0.46)
Live in South Darfor
state
0.29
(0.19)
0.02
(0.27)
0.11
(0.53)
1.41***
(0.70)
1.19
(0.85)
1.33***
(0.49)
Constant -5.3265 -7.1945 -17.712 -17.070 -20.476 -20.080
Number of observation 27078 27078 27078 27078 27078 27078
R-squared 0.0629 0.0873 0.1184 0.1630 0.0146 0.0951
From the result of the Tobit model of the log value of dependent variables on the explanatory
variables I find that: Age groups are significant and it has an impact on different types of health care with
a positive sign. The gender effect is not significant. The level of education statistically increases total OOP
health expenditure and hospitalization care OOP spending. For non-chronic care, almost all independent
variables have high effect. Marital status has no significance on chronic care OOP expenditure. The type of
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medical personnel, state dummies and urban residency play a main role in determining chronic care OOP
expenditure.
Conclusion
In the regressions, there are some statistically significant explanatory variables. Variables that
usually positively impact OOP spending include age groups, education level, widowed, land capacity,
hospital rate, bed rate. Variables that usually negatively impact OOP spending include divorce, type of
medical personnel as well as some of state dummies. Recall that the OOP variables come from the
summation of treatment cost, cost of food, and accommodation for the co patient and transportation
cost. Transportation costs seem to be very high for all type of care. This suggests that the distribution of
medical personnel and medical facilities is unequal.
Recommendation :
Health is a right for all people and to prevent people from having catastrophic health expenditure and to
be impoverished the Government should make plans to reform the health sector in general and the
public sector of health in particularly. I suggest many points for the government to reform health sector:
1) To increase the number of medical doctors.2) To increase the salary of medical staff to stop the
migration to outside the country.3) To open up the country for investment in health sector 4) To upgrade
the young medical assistants to became a general practitioner, a dentist or a pharmacist within their
specialties. 5) To create new medical facilities. And 6) to work with health care providers and consumers
and find ways to control the rising health care prices.
Limitation of the study
The OLS, seeming unrelated regression and Tobit models produce similar results. This study is
not without limitation. First, I do not have information about health of individuals in the study. Second,
Sudan is very big country with different cultures which could affect care seeking behavior. However, I do
not have the statistics or data that represent each culture for each individual.
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