Is High‐Tech Care in a Middle‐Income Country Worth It?

36 Pages Posted: 6 Sep 2016

See all articles by Dzhamilya Nigmatulina

Dzhamilya Nigmatulina

London School of Economics & Political Science (LSE)

Charles Becker

Duke University - Department of Economics

Date Written: October 2016

Abstract

How much does a dramatic increase in technology improve healthcare quality in an upper middle‐income country? Using rich vital statistics on infant health outcomes, this study evaluates the effect of introducing technologically advanced perinatal hospitals in 24 regions of Russia on infant mortality during the period 2009–2013. A 7‐year aggregate panel dataset reveals that opening a perinatal centre corresponds to infant mortality reduction by 3.8 percent from the baseline rate, neonatal (0–28 day) mortality by 7 percent and early neonatal (0–6 day) mortality by 7.3 percent. We find that the perinatal centres help to save 263 additional infant lives annually, ranging from 3 to 25 lives in regions with different birth rates. However, we further find that an average cost per life saved is 52 million rb (or 2.6 million 2014 PPP USD), which is much higher than the cost of similar interventions in the United States.

Keywords: Infant health, infant mortality, prenatal care, perinatal hospitals, impact evaluation, returns to technology, cost of healthcare

Suggested Citation

Nigmatulina, Dzhamilya and Becker, Charles Maxwell, Is High‐Tech Care in a Middle‐Income Country Worth It? (October 2016). Economics of Transition, Vol. 24, Issue 4, pp. 585-620, 2016. Available at SSRN: https://ssrn.com/abstract=2835166 or http://dx.doi.org/10.1111/ecot.12098

Dzhamilya Nigmatulina (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Charles Maxwell Becker

Duke University - Department of Economics ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States

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