Medical, transportation and spiritual out-of-pocket health expenditure on outpatient and inpatient visits in Bhutan

Chantal Herberholz and Sonam Phuntsho

Social Science & Medicine, 2021, vol. 273, issue C

Abstract: Understanding the determinants of out-of-pocket health expenditure (OOP) is important for achieving and sustaining universal health coverage, as well as ensuring that no one is left behind. Focusing on major types of spending, including healthcare-related transportation and spiritual expenses, this study analyses OOP on outpatient and inpatient visits in Bhutan, using a two-part model and data from the nationally representative 2017 Bhutan Living Standards Survey. While OOP based on standard estimates is relatively low in Bhutan, the survey data show that expenses for healthcare-related transportation and spiritual ceremonies are substantive and by far exceed other components of OOP. Demographic, socio-economic, geographic and morbidity-related factors are found to affect the probability of incurring medical, transportation and spiritual OOP, as well as amounts spent. Disaggregating healthcare-related spending into its key components further reveals that living in rural areas increases the probability of incurring expenses for transportation and spiritual ceremonies, but decreases the odds of experiencing positive medical expenditure. Monthly equivalised household expenditure, functional disability, frequency of visits and length of stay are positively associated with total OOP, especially for transportation and spiritual expenses. Going to a public primary healthcare provider for the first outpatient visit, on the other hand, significantly decreases likelihood and amount of medical, transportation and spiritual OOP. These key results highlight the importance of understanding context-specific drivers of healthcare-related spending. In Bhutan, the financial burden particularly impacts respondents in rural areas and those with higher needs for healthcare services. A clear implication of the findings is that primary care and gatekeeping mechanisms need to be strengthened, especially considering that cost pressures have been growing which could lead to higher OOP in the future. Moreover, closer examination of the role of spiritual practices in the provision of health services is needed.

Keywords: Out-of-pocket expenditure; Transportation; Spiritual ceremonies; Rural; Functional disability; Bhutan (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.socscimed.2021.113780

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