Cost analysis of a primary health centre in northern India
Anand, K.; Kapoor, S.K.; Pandav, C.S.
National Medical Journal of India 6(4): 160-163
1993
ISSN/ISBN: 0970-258X PMID: 8401192 Document Number: 419257
Cost data are useful in health planning, budgeting and for assessing the efficiency of services. However, such data are not easily available from developing countries. The study estimated the costs of providing health care for the 1991/92 period through an existing primary health centre which is integrated within the Comprehensive Rural Health Services Project in Ballabgarh, Haryana, India. The total costs investigated included the capital costs for land, building, furniture, vehicles and equipment, as well as the recurrent costs for salaries, drugs and vaccines, diesel and maintenance. Except for land, where the opportunity cost was calculated, the current market rates were considered for all other factors. A discount rate of 10% was used in the study. The results showed that a total of Rs 777 015 was incurred on the primary health centre in the study year, 80% being recurrent costs. Salaries constituted 62% of the total costs. A sum of Rs 30 per caput per year on primary health care was being incurred. It is concluded that salaries constitute the bulk of the costs incurred on health, and that around Rs 28 of the Rs 69 spent per caput per year on health services by the Indian government is incurred on providing primary health care services. ..[The authors] estimated the cost incurred for the year 1991-92 on a primary health centre in northern India, which is affiliated to an academic institution. The total costs incurred included the capital costs for land, building, furniture, vehicles and equipment as well as the recurrent costs for salaries, drugs and vaccines, diesel and maintenance. Except for land, where the 'opportunity cost' was calculated, the current market rates were considered for all other factors. A discount rate of 10% was used in the study. A total of Rs 777 015 (US$24 282) was incurred on the primary health centre in the study year, 80% being recurrent costs. [The authors conclude that] salaries constituted 62% of the total costs. A sum of Rs 30 (US$ 0.94) per head per year on primary health care was being incurred. Salaries constituted the bulk of the cost incurred on health. Approximately Rs 28 (40%) of the Rs 69 spent per head per year on health services by the government of India is incurred on providing primary health care services.AS.