A dream has come true in Uganda - Fondazione Corti

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Lacor Hospital and the local economy A study assesses the impact of a non-profit business on development The contribution of Lacor Hospital to the local community goes beyond the possibility of providing medical treatment to a population that cannot afford it; it is a fact we never tire of underscoring. It is an institution that provides medical services at highly subsidised rates but also acts as a flywheel for the local economy, thanks to the direct, indirect and related financial flows it generates. To verify and measure these flows, the management of Lacor commissioned a study to provide a tangible evaluation of the contribution which the Hospital provides to the community in terms of its overall economic impact. Financed by the Cariplo Foundation and Compagnia di San Paolo, the study drew to a close last December. A similar study had been carried out in 2003, in the midst of war. In view of the major social and economic changes brought about by the peace achieved in 2007, the Hospital’s management felt it was important to repeat the exercise, to understand whether the Hospital’s role and perception had changed significantly with the context. The study was conducted by Maurizio Murru, a doctor and expert in analysing international health policy, programming and managing medical systems. He has worked for many years in Uganda, amongst others as a lecturer at the faculties of Makerere and Uganda Martyrs University. Dr. Murru was helped by two analysts with expertise in managing medical services, as well as three local interviewers for gathering data from the population, all from the Acholi ethnic group, and who 42 were therefore an integral part of the local culture. In addition to a thorough analysis of the economic data and activities conducted by the Hospital, the study involved conducting widespread interviews at all levels with Hospital staff and management, patients and their relatives, students at the schools, owners of businesses near the Hospital and the main suppliers of the Hospital, as well as with local and district authorities. Interviews were also conducted in the three peripheral health centres, which are located in areas more rural than Lacor (which is located a few kilometers away from Gulu, the capital of Northern Uganda, with an estimated population of 150,000 inhabitants). In particular, the study confirmed that the Hospital continues to bring a sizeable and increasing flow of funds into the local economy (€ 2.8 million in the last financial year), both as aid from abroad and hospital fees paid by patients from other areas. The latter and their relatives, during their stay, put further resources into the local economy with each purchase. Much of these resources remain in the district, whilst in any case the rest remain in Uganda: Indeed the Hospital makes over 45% of its total expenditures in the area in the form of employee wages and local purchases. The remainder is spent mainly in Kampala, the capital in the South of Uganda, principally to buy medicines and fuel. Only 3% is spent abroad to purchase equipment not available in the country, such as ambulances. The employees in turn pour almost all their earnings back into the local economy, thereby contributing to- Photo Mauro Fermariello
wards the multiplier effect, which the study calculated as around 60% globally. Each Euro donated to Lacor and spent locally, is equivalent to investing no less than € 1.6 into Gulu district’s economy, a good return on the donors’ investment in development! The Hospital’s total financial contribution to the local economy has thus been estimated at € 2.3 million per year, a sizeable impact but one that decreases proportionally as the local economy develops. In fact, with the arrival of peace, the process of economic reconstruction has also got underway. It is a process for which the Hospital has no doubt been, and still continues to be, one of the driving forces, both through the financial flows explained above and its policy of low tariffs. These not only grant access to its services to the poorer sections of the population, but also avoid draining away any initial savings made, which are the starting point for generating local economic growth. Last but not least, it is also very interesting to note how the population’s perception of the Hospital has changed. In 2003, war was at its peak, and beyond Lacor, the missionaries and the humanitarian organizations, there was nothing except for immense refugee camps. Each night, thousands of women and children would take refuge in the Hospital courtyards, escaping from the guerrillas who attacked villages at night, killing anyone that opposed them as they ransacked and kidnapped children to enlist them by force. And there were still fresh memories of the terrible Ebola epidemic, during which the Hospital distinguished itself by discovering the virus and joining the battle to contain the epidemic which killed half of the people it infected. Lacor lost 13 staff members who became infected during their work, including medical director Dr. Matthew Lukwiya, who had been fronting the battle. It is no surprise then that, in those years, Lacor was considered a sort of sanctuary by a desperate population, one without which survival was impossible. Today, in answer to the question “What would you do if Lacor Hospital didn’t exist?” the most common response is: “I would look for another hospital”. The attention today has finally, and quite rightly, shifted to the quality of services provided. Laura Suardi Schools, banks and businesses: Lacor Hospital is at the very heart of a great social hive which pumps up the economy and promotes development. According to the economic study conducted, each Euro donated to Lacor, which is spent locally, is equivalent to investing €1.6 into Gulu district’s economy Photo: Mauro Fermariello Photo: Guido Coppadoro 3
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A dream has come true in Uganda - Fondazione Corti

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