Determinants Of Demand For Healthcare Services In Private Hospitals In Kenya

Abstract

Access to quality healthcare has been a long term policy issue in Kenya, as well as in many countries globally; both developed and developing ones alike. The exponential growth of the private health care sector is a matter of concern to those in policy making positions. This study therefore intended to find out the determinants of demand for healthcare services in private hospitals in Kenya. The objectives of the study were to analyze the trends of utilization of healthcare services in private hospitals in Kenya; and to establish the determinants of demand for healthcare services in private hospitals in Kenya. The study explored the determinants of demand by using binary probit regression model which lies on an interval of between 0 and 1. The study utilized the Kenya Household Health Expenditure and Utilization Survey of 2013, which consists of household-based cross sectional survey data on expenditures and utilization of health care services. The study employed an econometric model to determine their relationships with demand for health care services from private hospitals. At 5% significance level, the study revealed that an additional year increased the probability of demand for private hospital care by 0.0024% holding other factors constant. This means that as one gets older, the likelihood of using private health facility is high. This may be associated with either improved quality care, economic status or factors associated with bypassing hospitals. In addition, the study found that at 1% level of significance, an extra level of education led to a statistical significance increase in probability of demanding private hospital care by 5.75% at ceteris paribus. The study indicated that individuals with access to health information through mass media had high likelihood of increased demand for private hospital care at 10% level of significance by 2.58% holding other factors constant