Health Financing and Economics
We aim to empower actors and increase accountability, transparency and responsiveness in health systems in support of progress towards financial protection as part of universal health coverage (UHC).

Health economics

 

 Quantities and unit prices (cost inputs)


WHO-CHOICE uses a health sector perspective for costing, including overhead costs such as programme and training costs as well as patient level service delivery costs. The methodology used is a “bottom up” or “ingredients based” approach, whereby each resource required for the intervention is identified and valued.

The following menu leads to tables listing prices and other relevant information for cost analysis:

 


Health service delivery costs

Unit cost values for primary and secondary health care services in each member state, expressed both in international dollars, USD and local currency units for year 2010.


Prices of programme cost inputs

Tables listing the ingredients and prices for local (non-traded) goods used in estimating programme costs.


Prices for traded items

Tables listing the prices used for tradable goods. These items are used in estimating programme costs.


Assumptions on quantities of resources used

Tables listing the standardized list of assumptions on resource use for programme costs of health interventions.


Price multiplier for different coverage levels

A table listing the costs of shipping and handling for traded goods for different levels of population coverage.

Health service delivery costs

Through the WHO-CHOICE project, WHO has estimated unit cost values for service delivery at country and regional level. A database is available of estimated costs that, in principle, can be thought of as 'average' values of unit costs for the country, based on specific assumptions regarding the organization of health services and operational capacity. Estimates are differentiated for levels of care, but not for different levels of population coverage.

The table on Inpatient Unit Costs presents the estimated cost per hospital bed-day. These estimates represent the "hotel" component of hospital costs, i.e., excluding the cost of drugs and diagnostic tests but including costs such as personnel, capital and food costs.

The table on Outpatient Unit Costs presents the estimated cost per outpatient visit, and include all cost components except drugs and diagnostics. Estimates were originally estimated in international dollars, local currency units and US$, for base-years 2007 and 2008. Estimates have since been updated to 2010 international dollars, local currency units and US$, with 95% confidence intervals.

Please contact the WHO-CHOICE team at whochoice@who.int for more information.

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Estimating the costs of health interventions is important to policy-makers for a number of reasonsincluding the fact that the results can be used as a...

Prices of programme cost inputs

Information on prices for local (non-traded) goods used in the CHOICE analysis are available below :

The prices are presented in current international dollars of 2010.

An international dollar has the same purchasing power as the U.S. dollar has in the United States.

Costs in local currency units are converted to international dollars using purchasing power parity (ppp) exchange rates.

A ppp exchange rate is the number of units of a country's currency required to buy the same amounts of goods and services in the domestic market as U.S. dollar would buy in the United States.

An international dollar is, therefore, a hypothetical currency that is used as a means of translating and comparing costs from one country to the other using a common reference point, the US dollar.

Prices of local (non-traded) goods

Information on prices for local, non-traded goods, is available for each WHO sub-region. Non-traded goods are all those which cannot be internationally traded, thus must be sourced locally, for example human resources.

Price categories

  1. Personnel costs for the following categories
    • Administration
    • Finance
    • Health personnel
    • Law enforcement
    • Computing
    • Transport
    • Logistics
    • Media
    • Maintenance
    • Buildings
  2.  

  3. Media operational costs, at the national province and district level
    • Television
    • Radio
    • Newspaper
    • Wall posters
    • Flyers/leaflets
  4. Vehicle operating costs
  5. Utility prices
  6. Rental prices
  7. Per diem and travel allowances
  8. Capital costs of buildings

 

Prices used for tradable goods in WHO-CHOICE

Table 1: Global Prices and Useful Lives for Capital Goods 

Table 2: Global Prices for Other (recurrent)Tradable Goods

 

Table 1: Prices and useful lives of tradable capital goods




ItemPrice Used (2000 International $)Average of Reported Useful Lives. For more information, see Table 4
4WDsVaries by Region*9
Air conditioner$682.219.3
CarVaries by Region*7.3
Chairs$161.606.5
Cold boxes$164.005.7
Cold rooms and freezer roomsVaries by Region*13.6
Computer$1,581.265.4
Cupboard$249.747.9
Desks$179.237.9
Fax$494.466.3
Freezer TruckVaries by Region6
Freezer VanVaries by Region8
Freezers$301.447
MotorbikesVaries by Region*7.1
Packaging equipmentVaries by Region*6.4
Photocopier$781.807.3
Printer$312.855.4
Refrigerators$702.118.4
Standby Generator$750.007.7
Telephone$42.927.9
Television$316.708.4
Temperature monitors$396.506.1
TrucksVaries by Region*11
Typewriter$220.177.8
Vacuum cleaner$173.354.9
Video$170.958.3
Voltage stabilisers$322.935.8
* See Table 3: Prices of Select Capital Goods by Region  

Also listed in Table 1 are the useful lives for capital goods as reported by expert costing teams from the countries listed.


Table 2 : Prices of other (recurrent) tradable goods

ItemUnit Cost (International $)
Paper (plain)$14.44
Diskettes$1.50
Pencils$0.07
Pens$0.81
Pencil erasers$0.54
Envelopes (small)$0.06
Envelopes (medium)$0.21
Envelopes (manila)$0.23
Notebook (100 Pages)$4.35
Stapler
$10.89
Staples$1.65
Folders$0.42
Document Trays$3.61
Black ink printer cartridge$112.80
Clips (butterfly-style)$0.38
Glue$0.01
Liquid paper$2.42
Reading Lamp$62.24
Postage$0.36
Filing folders$1.02
Calculator$80.31


Assumptions on quantities of resources use

 

The following lists the estimated amount of resources consumed per full-time equivalent of persons working at the national or district level. The number reflects the amount used per year. For example, one full-time staff is assumed to use 2 reams of paper per year, and 8 square meters of office space. Utilities are consumed in the units listed below. Some quantities were estimated as a percentage of total costs.

Assumptions for Resource Use per person employed in intervention:

Materials and Supplies
  • paper (reams): 2
  • diskette: 5
  • pencils: 12
  • pens: 12
  • rubbers: 12
  • envelope(s): 30
  • note books: 6
  • staplers: 1
  • staples (box of 500): 1
  • folders: 10
  • document trays: 1
  • black ink print catridge: 0.25
  • clips: 20
  • glue: 4
  • correction fluid: 4
  • reading lamps: 1
  • postage stamps: 50
  • file pockets: 50
  • calculator: 1
Maintenance
  • Vehicles (service per km): 10000
  • Motorcycle/Moped (service per km): 5000
  • Building: 5% of annual costs
  • Computer: 5% of annual costs
  • Printer: 5% of annual costs
  • Photocopier: 5% of annual costs
  • Voltage Stabiliser: 5% of annual costs
  • TV and VCR: 5% of annual costs
  • Temperature monitoring: 5% of annual costs
  • Freezers: 5% of annual costs
  • Refrigerators: 5% of annual costs
  • Cold Room: 5% of annual costs
  • Cold Boxes: 5% of annual costs
  • Standby Generator: 5% of annual costs
  • Vacuum Cleaner: 5% of annual costs
Equipment
  • Computer: 0.5
  • Printer: 0.25
  • Photocopier: 0.125
  • Telephone: 0.5
  • Voltage stabiliser: 0.125
  • Standby generator: 0.125
  • Vacuum Cleaner: 1
  • Fax: 0.125
Office space (square meters)
  • per person FTE: 8
Utilities
  • Electricity (64 KW per 3 people per month): 21.3
  • 10 m3 per 3 people per month): 3.3
  • Telephone (2 calls per person per day): 2
Variable
  • Typerwriter: 1 (included for AFRO D. AFRO E, AMRO D, SEARO D)
  • Air Conditioner: 0.125 (included for all regions)


Price multiplier for different coverage levels

The figures listed below represent the percent mark-up of traded goods due to transportation costs. For example, in AFRO D at a population coverage level of 80%, the mark-up is 1.455, or 45.5% above the international price for tradable goods.

Price multiplier for different coverage levels :*

     
Region NameBase CIF/FOB Ratio**50% Coverage80% Coverage95% Coverage100% Coverage
 
AFRO D1.441.4511.4551.4591.463
AFRO E1.431.4451.451.4551.46
AMRO A1.181.191.1961.21.213
AMRO B1.271.2771.2771.281.284
AMRO D1.351.3541.361.3651.371
EMRO B1.291.2911.2931.2981.307
EMRO D1.371.381.3861.1691.173
EURO A1.161.1651.1681.1691.173
EURO B1.221.2241.2261.2281.23
EURO C1.241.2511.2521.2611.271
SEARO B1.341.3461.3511.3571.359
SEARO D1.251.251.2531.2551.257
WPRO A1.161.1691.1721.1731.182
WPRO B1.31.3011.3031.3051.307
 

* indicating the costs of transportation of traded good to final destination.
** CIF: Cost, Insurance and Freight - A trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier
FOB: Free on Board - A trade term requiring the seller to deliver goods on board a vessel designated by the buyer. The seller fulfills his obligations to deliver when the goods have passed over the ship's rail.

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