Restructuring Primary Health Care Network to Maximize Utilization and Reduce Patient Out-of-Pocket Expenses

Asian Journal of Innovation and Policy (2019) 8.1:122-140 DOI:10.7545/ajip.2019.8.1.122

19 Pages Posted: 21 May 2019

Date Written: November 1, 2018

Abstract

Providing free primary care to everyone is an important goal pursued by many countries under universal health care programs. Countries like India need to efficiently utilize their limited capacities towards this purpose. Unfortunately, due to a variety of reasons, patients incur substantial travel and out-of-pocket expenses for getting primary care from publicly-funded facilities. We propose a set-covering optimization model to assist health policy-makers in managing existing capacity in a better way. Decision-making should consider upgrading centers with better potential to reduce patient expenses and reallocating capacities from less preferred facilities. A multinomial logit choice model is used to predict the preferences. In this article, a brief background and literature survey along with the mixed integer linear programming (MILP) optimization model are presented. The working of the model is illustrated with the help of numerical experiments.

Keywords: facility location, primary care, public health, optimization, out-of-pocket expenses

JEL Classification: C61, I18, R53

Suggested Citation

Bardhan, Amit Kumar and Kumar, Kaushal, Restructuring Primary Health Care Network to Maximize Utilization and Reduce Patient Out-of-Pocket Expenses (November 1, 2018). Asian Journal of Innovation and Policy (2019) 8.1:122-140 DOI:10.7545/ajip.2019.8.1.122. Available at SSRN: https://ssrn.com/abstract=3382053 or http://dx.doi.org/10.2139/ssrn.3382053

Amit Kumar Bardhan (Contact Author)

University of Delhi ( email )

Faculty of Management Studies
University Road
Delhi, New Delhi 110 007
India

Kaushal Kumar

University of Delhi ( email )

University Road
Kirti Nagar
Delhi, DE New Delhi 110 007
India

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