Economic evaluation of cost and outcomes of healthcare services: A guide for optimal healthcare decision-making

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study evaluated the cost and outcomes of healthcare services in some African countries with a particular focus on the sub-Saharan African (SSA) regions. It carried out analyses of fixed, random, and dynamic effect of lagged cost of healthcare on health outcomes. To achieve the study’s objective, cross-sectional data from eight (8) African countries were obtained from secondary sources. Panel regression econometric techniques and panel generalised moment/dynamic (PGMM/D) methods were used to determine the lagged effects among the study variables. This study identified the pooled, fixed, and random effects of healthcare costs on health outcomes. It was statistically significant at a 5 percent level. This study documented a positive relationship between health outcomes needs and healthcare costs. The behaviour exhibited by the variables was symmetrical, as revealed by the mean and the standard deviation of the descriptive analysis estimates. The findings of the regression analysis confirmed the peculiarity of the health outcomes and healthcare cost positions among the selected countries. The health outcomes estimate constituted strong drivers of healthcare costs. Therefore, in line with the findings of Healthcare Value Hub (2018), optimal interventions to address technological inadequacy and inefficient system performance to achieve quality health outcomes are recommended.

Keywords: Generalised Method Moment, Healthcare Cost, Health Outcomes, Panel Regression

Authors’ individual contribution: Conceptualization — A.I. and M.N.; Methodology — A.I.; Investigation — A.I., M.N., and S.S.U.; Resources — A.I., M.N., S.S.U., E.A.I., and K.T.M.; Writing — Original Draft — A.I. and M.N.; Supervision — A.I.; Funding Acquisition — M.N., S.S.U., E.A.I., and K.T.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: I1, B21, B23, C23, I11, I12

Received: 04.08.2022
Accepted: 17.04.2023
Published online: 20.04.2023

How to cite this paper: Idris, A., Nwoko, M., Umar, S. S., Iyoha, E. A., & Maduako, K. T. (2023). Economic evaluation of cost and outcomes of healthcare services: A guide for optimal healthcare decision-making [Special issue]. Corporate Governance and Organizational Behavior Review, 7(2), 225–235. https://doi.org/10.22495/cgobrv7i2sip2