The impact of price changes on demand for family planning and reproductive health services in Ecuador.

Health Policy Plan

Health Services Research, Family Health International, Research Triangle Park, NC 27709, USA.

Published: September 2002

AI Article Synopsis

  • Donor funding for family planning and reproductive health in Latin America has decreased, prompting providers to explore new financing options like user fees.
  • Providers are concerned that raising fees might reduce demand for services and create barriers for low-income clients, highlighting the need for information on how price changes affect service utilization.
  • A study on CEMOPLAF clinics in Ecuador found that higher fees did not significantly reduce service demand, particularly among poorer clients, indicating that price increases could help financially sustain operations without compromising access for those in need.

Article Abstract

Donor funding for family planning and reproductive health (FP/RH) has declined in Latin America over the past decade, obliging providers to consider other financing mechanisms, including cost recovery through user fees. Pricing decisions are often difficult for providers, who fear that increased fees will cripple demand and create barriers to access for poor clients. Providers need information on how changes in price can affect utilization of services, and how to resolve trade-offs between generating income and serving poor clients. This paper reports on an experiment that measured the impact of higher client fees on utilization, revenue and client socioeconomic characteristics at 15 clinics operated by CEMOPLAF, an Ecuadoran not-for-profit FP/RH agency. The study improves on previous research by comparing effects of different price levels on demand for services. We conclude that demand was inelastic for three of CEMOPLAF's four main FP/RH services, and we found no evidence that the price increases had a disproportionate impact on utilization by poorer clients. The study therefore provided CEMOPLAF managers with knowledge that price increases at the levels tested would help to achieve sustainability goals (by increasing locally generated income) without undermining CEMOPLAF's social mission.

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Source
http://dx.doi.org/10.1093/heapol/17.3.281DOI Listing

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