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    Service Delivery System

    Lecture 3: Reach and Impact

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    Review

    In units 1 and 2 we defined Health systems Agents, Units, Institutions Adaptation, Adjustment, Coherence Incentives, Contracts

    We laid out 7 basic subsystems in healthPrimary health service delivery systemHealth workforceLeadership and governance to assure qualityHealth systems financing

    Supplying medical products and technologiesHealth systems informationHouseholds

    Today we focus on primary health service delivery

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    Outline

    Ingredients of the services system

    Local Example from Vietnam

    Reach vs. impact on the last mile Institutional norms of service delivery

    system

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    Part 1: Ingredients of Primary Care

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    Ingredients

    Primary servicedelivery made up of Health care service

    providers

    Facilities

    Drugs and supplies

    Governance

    Maintaining eachingredient is the workof an entire additionalsubsystem

    Agents

    Units

    Institutions

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    Centrality of Health Services

    Health ServicesDelivery

    Households

    GovernanceHealth Financing

    Health Workforce Supplies

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    Ingredients must be combined

    Primary clinics take things that arentmedical care and make them into medicalcare

    Drug on the shelf is not medical care untilyouve handed it to a patient who has thatdisease

    A nurse is not medical care until she is sitting

    with a patient putting a bandage on them The way this is coordinated requires

    thought and management

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    Design of Primary Health Care

    Different levels of Facilities

    Primary, Secondary, Tertiary

    Public, Private, NGO

    Different specialties

    Variable quality

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    Performance Metrics

    What do we want to get out of the primaryhealth care delivery system?

    World Health Report 2000

    Stewardship Financial equity

    Responsiveness to peoples non-medical

    expectations (dignity and respect) Equity (Fair delivery to rich and poor; deliverywithout barriers)

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    ExamplesCountry Example Metrics Affected

    Philippines: decentralization of responsibility forprimary health care to local governments in 1993.Assets, staff and budgets transferred to local level.Health workers now report to local government,

    not to MoH. Supervision by MoH has becomemore difficult. Stewardship

    Financial equity

    Dignity and Respect

    Equity

    Mali: independent health centres are not-for-profitcooperative establishments owned, financed andmanaged by community; recruit their own staff.Few financially independent in practice.

    Croatia: previously centrally employed, salariedambulatory care physicians. Now they areindependent contractors.

    From Table 3.2 Examples of organizational incentives for ambulatory care, World Health Report 2000

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    From Matsuda 1997

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    Utilization Patterns in Vietnam

    World Bank 2000

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    Vietnamese Health Expenditure

    ITEM 2000 2002 2004 2006Total Expenditure on Health as % of GDP of which: 5.4 5.2 5.7 6.6

    Government Exp on Health (% of Total Expend) 30.1 30 26.9 32.4

    Private Expenditure on Health (% of Total Expend) 69.9 70 73.1 67.6

    Government Exp on Health (% of Total Expend) 6.4 6.1 4.7 6.8

    External Resources for Health as % of Govern. Expend 2.6 3.4 1.9 2.2

    Out-of-Pocket Expenditure (% of Total Expend) 91 86.5 86.1 89.5

    Social Security spending on Health % of Gov. Expend 19.7 19.6 28.7 38.8

    Prepaid plans as % of Private Expenditure on Health 4.1 2.3 2.8 2.5

    Per capita Total Expenditure on Health (US$) 21 22 31 46

    Per capita Total Expenditure on Health at PPP ($) 132 147 188 264

    Per capita Government Expenditure on Health (US$) 6 7 8 15

    Per capita Government Expenditure on Health PPP ($) 40 44 51 86

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    Part 2: Last Mile: Impact and Reach

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    The Last Mile Problem

    High capacity conduits

    Centralized

    Easily manipulated

    Low capacity conduitsSpatially disbursed

    Costly to access

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    The Last Mile: Examples

    Fiberoptic trunk lines

    Arteries

    Interstate highways

    Tertiary hospitals

    Copper wireCapillaries

    Back roads

    Rural drug sellers

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    Concrete vs. Abstract Metaphors

    Thinking about the last mile provokes mental

    images of concrete resources and people inspace

    Last mile problems transcend who and what Locus of control is critical

    Last mile problems affect processes and institutionalperformance

    Managing these problems requires going down lastmiles

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    Last mile in health is not just aboutsupplies

    Health care deliveryrequires hardware plus

    software

    Not just the drug, theindications, side effects,motivational counseling

    Not just the diagnostic, the

    interpretation and thedecision making

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    Impact

    Definition of Impactthe effect oftreatment on the treated

    To achieve high impact

    Be selective Apply best inputs in the best place

    Farmer puts one bag of fertilizer on the best soil

    Teen pregnancy prevention programs in a church

    A more technical word for impact is

    in-tensive margin

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    Systems and Incentives

    What are the political and organizationalfactors that determine degree ofcentralization?

    Incentives of decision-makers and agents

    How does centralization affect the impactof primary services on the poor?

    Incentives of decision-makers and agents

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    Reach

    Definition of Reach-The ability to bringmore people into treatment

    To achieve high reach

    Do not be selective Apply inputs as broadly as possible

    Farmer spreads one bag of fertilizer over 10 acres

    Teen pregnancy prevention programs on the radio

    A more technical word for reach is

    ex-tensive margin

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    Fundamental Laws of Service Delivery

    Law 1) Population Benefit=Reach Impact

    Law 2) In any budget, there is a tradeoffbetween reach and impact

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    Example of Law 1

    Example from TB

    Reach is number of people who can accessdiagnostic testing for TB in less than 1 week

    of 1st symptoms Impact is number of people who complete

    100% of directly observed treatment (DOTS) if

    diagnosed Reaching more people with better

    treatment means less TB

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    TB Model: Impact Matters

    Population Benefit=Reach Impact

    TB Burden

    Impact

    TB as function of diagnostic quality

    0

    50

    100

    150

    200

    250

    300

    350

    20 21 22 23 24 25 26 27 28 29 30

    Proportion of Active TB Patients Diagnosed by Clinic

    TBBurden

    Average Diagnostic Delay 25 Weeks Average Diagnostic Delay 8.3 Weeks

    Average Diagnostic Delay 4.1 Weeks Average Diagnostic Delay 5 Weeks

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    TB Model : Reach Matters

    Population Benefit=Reach Impact

    TB Burden

    High Reach Low Reach

    TB Burden as a function of Diagnostic Delay

    0

    50

    100

    150

    200

    250

    300

    350

    0 5 10 15 20 25

    Average Diagnostic Delay in Weeks

    TB

    Burden

    Proportion Diagnosed 20%

    Proportion Diagnosed 26%

    Proportion Diagnosed 30%

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    Dual Impact of Reach and Impact

    Population Benefit=Reach Impact

    Reach

    Impact

    TB as a function of Reach and Impact

    0

    20

    40

    60

    80

    100

    120

    0 5 10 15 20 25 30

    Mean Delay in Weeks Between Symptoms and Diagnosis

    PercentDiagnosed

    AtPresentatio

    n

    TB Burden 0.004 TB Burden 0.0045 TB Burden 0.0055 TB Burden 0.006

    High Burden

    Low Burden

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    Illustration of Law 2

    Buying more TB reach means

    Investing in training front line public andprivate workers to make the diagnosis

    More clinics in more places that know how todiagnose

    More diagnostic facilities

    Buying more TB impact means Investing in training public TB facilities tomaintain good DOTS programs

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    It is like fighting a battle

    General has to defend a mile long line ofdefense (Reach)

    Has different quality troops (Impact)

    Cannon ($100) Cavalry ($10)

    Foot soldiers ($1)

    Cant afford cannon for every inch of the line

    Shouldnt use only foot soldiers Deploy forces strategically

    Achieve ideal mix

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    Managing Primary Service Delivery

    Each unit has a certain amount ofeffectiveness

    Can improve the unit

    Can build more low quality units

    Who manages the big decision of wherethe troops go?

    Market forces

    Public policy

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    Part 3: Institutions that govern reach

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    Governments, Markets, NGOs affect Reach

    Governments (MOH) Government decides location of workers located in space Command and control incentives

    Service obligations Constructing, buying, new facilities

    Political factors and population needs enter these decisions

    Markets Primary service agents seeking revenue Looking for patients with ability and willingness to pay Assessing competition

    NGOs

    Organizations locate facilities and hire staff Population needs and organizational convenience enter decisions Impact capacity of governments and markets by hiring away their staff

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    Government Institutions

    Hierarchical levels of decision making Center, province, district

    Decision-making can be centralized or

    decentralized Budgets need to be allocated across

    primary, secondary, and tertiary services National hospitals, provincial hospitals, health

    stations

    Costs escalate at hospitals

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    Hospitals

    Hospitals and politics

    Hospitals have economic gravity Impact hundreds of health worker livelihoods

    Supply chains and financing infrastructures are hard tochange

    Hospitals have political gravity Civic pride

    Sense of security for middle/upper class

    Hospitals have limited preventive impact, limitedrelevance to 98% of clinical problems

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    Ecology of Medical Care-USA

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    Incentives in Hospitals

    For-profit hospitals Owners maximize: Profit=Revenue-Cost

    Bring in more revenue from more paying customers receivinghigh price services

    Competition with other hospitals in urban areas Compete on quality and price

    Minimize costs without sacrificing quality

    Government hospitals Administrator maximizes: Job security

    Minimize scandals

    Satisfy supervisors

    Satisfy local powerful elites

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    Hospitals vs. Health Stations

    The balance between primary vs. tertiaryis both a political question and a publichealth question

    Political gravity of hospitals pulls them tocenters of political power

    Gravity of hospitals pulls public funds towards

    them

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    Health Station Incentives

    Health stations often suffer resource limits Low salaries

    Supply shortages

    Incentives of health planners Good distribution of health stations at lowest recurrentcost

    (Fixed cost: cost of building a station)

    (Recurrent cost: cost of salaries and supplies)

    Incentives of primary health workers Maximize Income and be somewhat concerned with

    patient health

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    Syndrome 1: Private Market

    Definition: Private marketosis is when healthworkers at public facilities maintain privatepractices Natural outcome of the incentives in the system

    Everyone is partly happy Public administrator gets a remote health station

    staffed from 10AM till 4PM

    Health worker gets supplementary income

    Patient gets access to a health worker who wouldotherwise not be in this remote location

    Still has to pay

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    Is private marketosis bad?

    Some say Yes Goal of totally free care at minimal government cost

    is not realized Poor face lack of financial protection

    Push to make dual practice illegal Some say No

    Unrealistic to expect totally free care unlessgovernment pays wages that one can live on

    Solved the main public problem of getting healthworkers to remote areas

    Patients pay for what they get

    What do you think?

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    Diagnosing pathological private market

    Symptoms:

    Health station salaries are well below what ahealth worker can earn in private practice

    Health station utilization rates are low

    Household surveys report high proportion ofout of pocket payments even in remote areas

    Drive around and see private practices withbusy waiting rooms

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    Treating Private Market Pathology

    Ask former health station workers foradvice on incentives for dual practice

    Improve finance at public health stations

    Demand side strengthening with insurance

    Supply side finance with contracting orbudgeting

    Improve non-financial incentives at publichealth stations

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    NGOs/Private Not for Profits

    NGOs mix features of government facilities andprivate facilities Uses salaried workers

    Can do private things like charge user fees

    Can use reputation to pull in more demand

    Deployment based on interest of the NGO and thosethey are serving

    Service mix not always tied to governmentobjectives Donors pick darling diseases, darling locations

    Use facilities for vertical programs

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    Syndrome 2: NGO-overload

    Definition: NGO-overload is when health sectorNGOs well-intended activities interfere with thesmooth performance of the primary servicedelivery system

    Examples Poaching talented health workers from other sectors Undermining referral patterns in public/private sector Reorienting health system priorities to suit the

    interests of donors over the interests of community Keeping private sector from delivering solutions

    Free condoms, bed nets, ARVs, stops private entrepreneurs Subsidies for free items can be unstable subject to donors

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    Is NGO-overload bad?

    Some say Yes: Primary health systems

    structure should reflect national autonomynational priorities.

    Some say No: NGOs inject new

    resources that would not otherwise be inhealth system, in return why not give them

    a voice in the system What do you think?

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    Diagnosing NGO-overload

    Salaries for health workers are rising

    Prices of primary health goods are falling

    Budgets full of line items around NGOpriorities: HIV/AIDS, TB, Family planning,vaccines

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    Treating NGO-overload

    Dis-engagement

    Some countries just say no

    Engagement

    Some countries adopt sector-wideapproaches (SWAPs)

    Ministry of Health convenes meetings to

    establish minstrys priorities and invites input

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    Part 4: Institutions that govern impact

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    Impact

    Best health impact from doing the rightthing at the right time

    Requires good health workforce

    Good governance

    Good supply system

    Covered in later units of the workshop

    Choices on reach spill over to choices on

    impact

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    Private Markets and Impact

    To the extent that private market imposesuser fees on the poor, adherence withtreatment can lower impact

    Do health workers practice same level ofquality in their private practices as public?

    Governance systems have had difficulty

    governing the impact of workers who areentirely private

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    Reach, Impact, and the Poor

    Different politicalsystems. None isnaturally oriented to thepoor Liberal Democratic

    USA Egalitarian-Authoritarian

    Cuba

    Traditional-Inegalitarian Brunei

    Authoritarian-Inegalitarian Sudan

    Populist Kenya

    Whether decentralizingserves the poor depends: Which decision makers

    care about the poor?

    Power is the currency of

    all political systems Poor people dont have

    power

    Public health systems natural tendency is to serve power not need

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    Summary

    Primary health care (PHC) delivery system takesingredients (providers and supplies) makesservices

    Reach and Impact suffer from last mile problems They need to occur on last mile

    They are easiest to do on first mile

    Institutions in PHC prey to 2 syndromes

    Private market pathology and NGO-overload Performance metrics can help diagnose

    Understanding incentives helps treat.

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    Exercise on Performance Metrics

    Methods for how to measure theseindicators

    Break into groups and decide on how to

    make indicator meaningful for local use.