Assessing the Role of Performance-Based Financing Approach on Medical Logistics in the Case of Agaro General Hospital
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Date
2022-07
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Addis Ababa University
Abstract
Performance-based financing (PBF) is being implemented across low- and middle-income countries to improve the availability and quality of health services, including medicines. Although a few studies have examined the effects of PBF on the availability of essential medicines (EMs) in low- and middle-income countries, there is limited knowledge of the mechanisms underlying these effects. Pharmaceuticals, medical and surgical supplies, medical devices and equipment, and other products needed to assist doctors, nurses, and other health and dental care providers are all part of medical logistics. Medical logistics tasks are an important part of the healthcare system: medical supplies are the most expensive component of healthcare after staff costs. Medical logistics companies are implementing supply chain management techniques to reduce healthcare expenses. The objective of this study is to assess the role of Performance-based financing on medical logistics in the case of Agaro General Hospital. Both quantitative and qualitative approaches are used in an explanatory and descriptive research design. A total of 114 samples were taken from 160 populations. Structured questionnaires and open-ended interview questions are used as a tool for data collection. The data were analyzed using both descriptive and inferential statistical tools. Moreover, the result was described using mean, frequency, and standard deviation, and the researcher has also applied a parametric statistical test (correlations, and regression analysis) to interpret and analyze the data, using Statistical Package for Social Science version 26. The findings showed that medical logistics is found to be strongly affected by the Performance-based financing approach. Most of the respondents agreed that the approach has a positive role in the availability of the essential drug, supporting their own procurement of medical equipment, stock management, and bringing motivations to provide good quality care services to the patients. And most respondents disagree that the approach supports having a formal logistics department. This may be due to government structure and requires decisions from the Federal Ministry of Health. From the findings of the study, 44.5 percent of the variance in medical logistics was explained by the variance of explanatory variables, while the rest 55.5 percent was contributed by other factors that were not included in the model. Hence it is recommended that the Federal Ministry of Health must assess the role of the Performance-based financing approach impact in the health sector including the overall impact of the approach considering various factors. Keywords: Medical logistics, Performance-based financing approach, Pharmaceuticals, and medical supplies,