Costs of diarrhoeal diseases and the savings from a control programme in Cebu, Philippines

Abstract

A control of diarrhoeal diseases programme was set up in Cebu Province, Philippines, in 1986. In order to compare the reduction in treatment costs before and after implementation of the programme, and the potential savings to be made from its continuation, we collected data for 1985 and 1989 in 10 health facilities in Cebu. Since the programme's introduction, household expenditures on drugs for diarrhoea cases have decreased by a total of 1.03 million Philippine pesos (P) (US$ 41,200). At the health centre level, the costs of treating diarrhoea cases were close to optimum, but in the district hospitals treatment of inpatients with diarrhoea changed little between 1985 and 1989. This arose because such hospitals were compensated by the central authorities for inpatients but not for outpatients. Potential savings of around US$ 60,000 could have been made, however, had the district hospitals adopted the practices used in the main referral hospital.

PIP: A program to diarrheal diseases was established jn 1986 in Cebu province, Philippines. The authors calculate the reduction in treatment costs over the course of program its continuation. Findings are based upon data collected for 1985 and 1989 in 10 health facilities in Cebu. It is concluded that households expenditures on drugs for diarrhea declined by 1.03 million. Philippine pesos since the program started. Close to optimum costs have been realized for treating diarrhea cases at the health center level, yet the treatment of inpatients with diarrhea in district hospitals changed little over the period. This latter outcome stems from a structure in which hospitals were compensated by central authorities for inpatients, but not for outpatients. Had district hospitals adopted the practices of the main referral hospital, nearly 1.3 million Philippine pesos could have been saved.