In Kenya, cost recovery through user fees and insurance reimbursement mechanisms has been in place for almost a decade. The cost recovery program has become a victim of its own success, and treasury allocations to the health sector have declined as cost recovery rates have increased and as the economy has also declined. However, the cost recovery program is acknowledged to have kept public health facilities open when without it many would have been forced to close their doors.
Despite the bleak short-term economic outlook, there are still measures that can be taken to greatly improve the efficiency of cash collections in public health facilities. For example, the introduction of modified retail-store, point-of-sale systems to Kenya's second largest hospital, together with improved patient registration systems, has succeeded in doubling revenues at a rapid rate. Similar systems have been introduced in three other large hospitals.
Increasing revenues through improved collection efficiency is desirable but needs to be accompanied by management improvements that ensure revenues are targeted towards improved patient care and the issuance of waivers and exemptions to the poor and needy.
This paper presents the results of an analysis of the effects of collection systems upon revenues, expenditures, and the quality of care available in these hospitals, and also discusses their effects upon access and equity.
Learning Objectives: At the conclusion of the session, the participant (learner) in this session will: 1) Understand how the Kenyan cost recovery program has affected the operation of public health facilities over the past decade. 2) Have a better understanding of the effects of collections systems on the finances and quality of care in large hospitals in Kenya
Keywords: Financing, Developing Countries
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: MSH, MOH Kenya
I have a significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.
Relationship: Employment with MSH