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).

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.

REFERENCE

B. H. Baltagi and F. Moscone, “Health care expenditure and income in the OECD reconsidered: evidence from panel data,” Economic Modelling, vol. 27, no. 4, pp. 804–811, 2010.

L. P. Santiago, C. P. David, and B. F. Carla, “On the relationship between GDP and health care expenditure: a new look,” Economic Modelling, vol. 32, pp. 124–129, 2013.

K. P. Gbesemete and U.-G.Gerdtham, “Determinants of health care expenditure in Africa: a cross-sectional study,” World Development, vol. 20, no. 2, pp. 303–308, 1992.

V. C. Jaunky and A. J. Khadaroo, “Health care expenditure and GDP: an African perspective,” Applied Econometrics and International Development, vol. 8, no. 1, pp. 131–146, 2008.

L. Di Matteo, “The income elasticity of health care spending: a comparison of parametric and nonparametric approaches,” European Journal of Health Economics, vol. 4, no. 1, pp. 20–29, 2003.

M. Okoro, “Health care expenditure and GDP: an international panel smooth transition approach, vol. 4, no. 1, pp. 189–200, 2012.

H. Herwartz and B. Theilen, “The determinants of health-care expenditure: new results from semiparametric estimation,” Health Economics, vol. 19, no. 8, pp. 964–978, 2010.

P. Y. Crémieux, P. Ouellette, and C. Pilon, “Health care spending as determinants of health outcomes,”Health Economics, vol. 8, pp. 627–639, 1999.

S. Gupta, M. Verhoeven, and E. R. Tiongson, “The effectiveness of government spending on education and health care in developing and transition economies,” European Journal of Political Economy, vol. 18, no. 4, pp. 717–737, 2002.

J. P. Newhouse, “Medical-care expenditure: a cross-national survey,” Journal of Human Resources, vol. 12, no. 1, pp. 115–125, 1977.

T. Hitiris, “Health care expenditure and integration in the countries of the European Union,” Applied Economics, vol. 29, no. 1, pp. 1–6, 1997.