Determinants of healthcare seeking and out-of-pocket expenditures in a “free” healthcare system: evidence from rural Malawi

Meike Irene Nakovics (), Stephan Brenner (), Grace Bongololo (), Jobiba Chinkhumba (), Olivier Kalmus (), Gerald Leppert () and Manuela De Allegri ()
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Meike Irene Nakovics: University of Heidelberg
Stephan Brenner: University of Heidelberg
Grace Bongololo: Research for Equity and Community Health (REACH) Trust
Jobiba Chinkhumba: University of Malawi College of Medicine
Olivier Kalmus: University of Heidelberg
Gerald Leppert: German Institute for Development Evaluation (DEval)
Manuela De Allegri: University of Heidelberg

Health Economics Review, 2020, vol. 10, issue 1, 1-12

Abstract: Abstract Background Monitoring financial protection is a key component in achieving Universal Health Coverage, even for health systems that grant their citizens access to care free-of-charge. Our study investigated out-of-pocket expenditure (OOPE) on curative healthcare services and their determinants in rural Malawi, a country that has consistently aimed at providing free healthcare services. Methods Our study used data from two consecutive rounds of a household survey conducted in 2012 and 2013 among 1639 households in three districts in rural Malawi. Given our explicit focus on OOPE for curative healthcare services, we relied on a Heckman selection model to account for the fact that relevant OOPE could only be observed for those who had sought care in the first place. Results Our sample included a total of 2740 illness episodes. Among the 1884 (68.75%) that had made use of curative healthcare services, 494 (26.22%) had incurred a positive healthcare expenditure, whose mean amounted to 678.45 MWK (equivalent to 2.72 USD). Our analysis revealed a significant positive association between the magnitude of OOPE and age 15–39 years (p = 0.022), household head (p = 0.037), suffering from a chronic illness (p = 0.019), illness duration (p = 0.014), hospitalization (p = 0.002), number of accompanying persons (p = 0.019), wealth quartiles (p2 = 0.018; p3 = 0.001; p4 = 0.002), and urban residency (p = 0.001). Conclusion Our findings indicate that a formal policy commitment to providing free healthcare services is not sufficient to guarantee widespread financial protection and that additional measures are needed to protect particularly vulnerable population groups.

Keywords: Health care seeking behaviour; Health financing; Costs; Health care allocation; (country of expertise: Malawi) (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1186/s13561-020-00271-2

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