A Regression Analysis On The Impact Of Per Capita Income On The Health Care Cost (A Case Study Of University Of Uyo Teaching Hospital)

A Regression Analysis On The Impact Of Per Capita Income On The Health Care Cost (A Case Study Of University Of Uyo Teaching Hospital)

Abstract

Health challenge has been identified as one of the major challenge of man after Food and security. People want to live healthy because it is the foundation for effective and efficient growth. Several governments and administration has in one way or the other given premium to health but it is yet to meet the numerous demands as the health of individuals keep failing due to so many factors. The health of individuals can be improved if the health care is affordable. The health care facilities and attention are not affordable for a considerable few as many are poor and incapacitated to afford the health necessities. Suffice it to say that the income per ordinary individual in Nigeria cannot afford him/her good food, accommodation and health needs. This study is therefore undertaken to examine the relationship that exists between per capital income of individual and the health expensive. The regression method was adopted as the University of Uyo Teaching Hospital (UUTH) served as a case study having provided the data used for this study. The study found out that there exists a positive relationship between the income of individuals and their ability to afford good health care treatment.

Chapter One

Introduction

1.1. Background of the Study

Per capita income in Nigeria as we all know has a lot to do with the day to day live of Nigerians as it determines the quality of services rendered with the health care sector having a lot to do with per capita income of Nigeria.It is important for policymakers to know the relationship between health care expenditure and income, knowing this relationship helps them to make wise judgments, plan health reforms, and allocate resources efficiently. In Nigeria, health care cost is a direct consequence of per capita income as the amount of money earned determines the quality of health care rendered. Okoro (2011: 46). Per capita income is simply means the mean money income received in the past 12 months computed for every man, woman, and child in a geographic area. It is derived by dividing the total income of all people 15 years old and over in a geographic area by the total population in that area (Wikipedia). Per capita income for a geographical area or country like Nigeria has a lot to do with economic development amongst health care cost. Health is a delicate sector in Nigeria; a healthy nation is a nation that achieves great economic development and progress. Per capita income determines in some sort the health care cost. Nigeria being a developing country needs to know the unique relationship between the per capita income and health care cost. Understanding this would help in programming holistic health care laws that would assist and protect the poor who do not have access to quality health care. Nigeria is a country blessed with several health care outlets ranging from teaching hospitals to clinics and health research institutes just to mention but a few. The availability of these centers isn’t enough in confronting health care challenges in Nigeria. The holistic improvement of health care gores beyond just building of hospitals. This hospitals need to be affordable to the poor masses a vast majority which live on less than a dollar daily.

1.2. Aim and Objective of the Study

It is important for policymakers to know the relationship between health care expenditure and per capita income, knowing this relationship helps them to make wise judgments, plan health reforms, and allocate resources efficiently and at the same time help in accommodating the poor in quality health care delivery bearing in mind the health care cost.

1.3. Statement of the General Problem

Quality health care delivery and its cost has been a major problem in Nigeria, a vast majority of Nigerians are being denied quality health care delivery as a result of its cost. This sole problem has led us into this research work inother to know the relationship between health care cost and per capita income in other to advice policy makers in ways of making holistic plans that would have a positive far reaching effect on Nigerians, especially the poor in the society.

1.4. Significance of the Study

A cardinal significance of this study seeks to advice policy makers on the best way to make robust plans on quality health care cost in relation to per capita income. This would help policy makers in effective distribution of resources. This study seeks to recommend ways of making health sector accessible by all and sundry which would help the poor gain access to quality health care delivery.

1.5. Scope of the Study

The scope of this study is on the impact of per capita income on the health care cost (a case study of university of uyo teaching hospital)

1.6. Limitation of the Study

A major limitation of this study is lack of sufficient data to carry out the study. There were presence of missing data but this missing data wasn’t significant enough to affect the potency of the study and its analysis.

1.7. Research Hypothesis

• H0: There is no significant impact of per capita income on health care cost.
• H1: There is a significant impact of per capita income on health care cost.

1.8. Definition of Terms

Per Capita Income:

This is the mean money income received in the past 12months computed for every man, woman, and child in a geographical area.

Health:

The condition of a person’s body or mind.

Health Care:

The organized provision of medical care to individuals or communities.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to restate that the objective of this study was to examine the impact of Per Capital Income (PCI) on the Health Care Cost (HCC).

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, conclusion will be drawn and possibly recommendation made in light of the subject matter.

5.2 Summary

This study was undertaken to assess the impact of Per Capital Income (PCI) on the Health Care Cost (HCC). The study opened with chapter one where the statement of the problem was clearly defined. The study objectives and research hypothesis was defined and formulated. The study reviewed related and relevant literatures. The chapter two gave the conceptual framework, empirical and theoretical studies. The third chapter described the methodology employed by the researcher in collecting both the primary and the secondary data. The research method employed here is the descriptive survey method. The study analyzed and presented the data collected in tables and employed the correlation and regression tool from the SPSS V.20 while the fifth chapter gives the study summary and conclusion.

5.3 Conclusions and Recommendations

This study has revealed that there is a cointegrating relationship among per capital income (PCI), and Health Care Cost (HCC). The role and importance of per capital income (PCI) in Health Care Cost (HCC)cannot be overemphasized as a mechanism for effective allocation of fund to the health sector and ensure sustainable health status. Thus, this study investigated the long-run economic relationship between Health Care Cost (HCC) and per capital income (PCI) in Nigeria.

The saying, ‘health is wealth’ is one that many Nigerians, rich and poor, find difficult to understand. They do not easily differentiate the pangs of everyday living in Nigeria from the pangs of ill health but when sickness calls, the import of the saying becomes very obvious. In our usual way of seeking own solutions to social and medical problems, most of us can afford to go to local hospitals or travel to cities where there are better equipped hospitals for treatment, leaving the lower class, market traders, commercial service providers etc in our midst at the mercy of unprescribed local herbs or no medical attention whatsoever. If there is any country who needs to take this agenda 2030 seriously, it is Nigeria, given our poor health statistics. According to the 2018 CIA World Factbook, Nigeria ranks fourth and eighth highest in the maternal and infant mortality in the world, with a record of 814 deaths per 100,000 live births (maternal), and 69.8 deaths per 1,000 live births (infant). In general, Nigeria has the 19th highest death rate in the world with an estimated 12.4 deaths per 1,000 population annually. One other disturbing fact addresses Nigeria as ‘very high risk’ in the prevalence of major infectious diseases like diarrhoea, hepatitis, typhoid fever, malaria, dengue fever, Lassa fever etc. Many factors may account for these grim statistics, but chief among them is the country’s poor health care service delivery, the lack of prompt and quality medical attention, broken down into lack of medical equipment and consumables, inadequate health personnel among others on the hospital’s part which most low income earners might not be able to afford. To even achieve the Sustainable Development Goals, we need to address these poor statistics through adequate and targeted funding. Our health expenditure is on the average of 3.7 percent of the annual budget which is much lower than the UN-recommended 15 percent. It calls for extra-governmental funding – from donor agencies, non-governmental organisations, corporate entities and philanthropists – to address the various challenges bedevilling our health sector. It is interesting to see some corporate organisations such as MTN Nigeria contribute in making efforts towards reversing this status quo by equipping hospitals, training the health personnel and further taking healthcare to odd and busy locations such as the markets in order to reach out to the low income earners in Nigeria. When it comes to choices we make on various issues of life, we do what we think is best and therefore live with its consequences whichever way it turns out. But, when it comes to one’s health, a second thought needs be given as to whatever decision we make. It is alarming the rate at which the local concoction popularly known as Agbo jedi jedi or Sepe is hawked on the streets of Nigeria and the widespread consumption of Herbal bitters, especially at market places or motor parks.

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