FRONTIERS Projects | Cost Analysis of Reproductive Health Services: The Case of a Maternity Ward and Maternal and Child Health/Family Planning Clinic

FRONTIERS PROJECT
Cost Analysis of Reproductive Health Services: The Case of a Maternity Ward and Maternal and Child Health/Family Planning Clinic

The faith-based Chogoria Hospital, once a major provider of general and reproductive health services in the area around Mount Kenya, now faces significant challenges to its sustainability, including declining donor support, low cost recovery, and increased poverty among clients. This study, developed during a workshop on financial sustainability, sought to determine the revenue structure, production costs, and cost recovery of selected reproductive health services (maternity care, maternal and child health, and voluntary counseling and testing for HIV).

Findings showed that while some reproductive health services (inpatient care and antenatal care) recover most or all of hospital costs, most outpatient services incur heavy losses (overall recovery 37%). The study suggested the following options: (1) increase fees for inpatient maternity care; or (2) slightly increase fees for outpatient services—although doing so will not offset the full cost of these services. Management can use evidence generated from this study to obtain government support for providers’ work and to negotiate for rebates in inpatient care costs. While recommendations included increasing fees for inpatient and outpatient services, the hospital must discuss ways of covering outpatient services that are presently operating at large losses.

Location

Kenya

Duration

September 2004–October 2005

Population Council researchers

Rick Homan, James Foreit

Non-Council collaborator

Presbyterian Church of East Africa (PCEA) Chogoria Hospital

Donor

US Agency for International Development

Publications/Resources
Council researchers' names appear in boldface type.

2006
Munguti, Nzoya, Moses Mokua, Rick Homan, and Harriet Birungi. "Cost analysis of reproductive heath services in PCEA Chogoria Hospital, Kenya," FRONTIERS Final Report. Washington, DC: Population Council. (PDF, 89 KB)