Economic valuation of setting up a social health enterprise in urban poor-resource setting in Kenya.

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ID: 121944
2020
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Ranked #83 of 124 articles by views in Social science & medicine (1982)

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Abstract
The failure of the market and government to provide quality healthcare services have been the motivation to set up social health enterprise. However, the value for money associated with setting up a social health enterprise in sub-Sahara African countries has been relatively unexplored in the literature. The study presents the first empirical estimates of the mean willingness-to-pay (WTP) for setting up a social health enterprise that will simultaneously run a health center and provide health insurance scheme in an urban resource-poor setting and explores whether the benefits outweigh the costs. The contingent valuation method is used to estimate the mean WTP for the health insurance scheme proposed by the social health enterprise in Viwandani slum (Nairobi, Kenya). The survey was conducted between June and July 2018 on 300 households. We find that the feasibility of setting up a social health enterprise could be promising with 97 percent of respondents willing to pay about US$ 2 per person per month for a scheme that would provide quality healthcare services. More importantly, setting up the social health enterprise will yield a positive net profit, and investors could expect US$ 1.11 in benefits for each US$ 1 of costs of investment in setting up the social health enterprise. We, therefore, conclude that this health policy in this urban resource-poor setting could be a viable solution to reach the neglected urban households in the Kenyan slums.
Reference Key
donfouet2020economicsocial Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Donfouet, Hermann Pythagore Pierre;Mohamed, Shukri F;Otieno, Peter;Wambiya, Elvis;Mutua, Martin Kavao;Danaei, Goodarz;
Journal Social science & medicine (1982)
Year 2020
DOI
S0277-9536(20)30513-X
URL
Keywords
contingent valuation method cost-benefit analysis social health enterprise

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