Importance of LH on the local economy - Lacor Hospital > Home

More documents

Recommendations

Info

29schools had a total <strong>of</strong> 250 students (199 in the nursing school and 51 in the laboratory school). We canestimate that, in the FY 2010/2011, the students injected into the local economy about USh 25,000,000(derived thus: 250 students * the median <strong>of</strong> USh 50,000 * 2), that is, about US $ 10,762.This relatively small contribution by the students is mainly due to two factors. On one hand, the schoolsprovide most <strong>of</strong> the basic items like food and toiletries, even if many students complain that the amountprovided is insufficient. On the other hand, the majority <strong>of</strong> the students come from poor families living inpoor areas <strong>of</strong> the country (all the students interviewed hailed from Northern districts, among the poorest inthe country). As the observations written by most students suggest, their families are already struggling topay school fees and the pocket money they can afford to provide is, consequently very small. This financialflow was not calculated in 2003.07.8.2 Expenditures by in patients and their care-takersWith the exception <strong>of</strong> malnourished children, the Hospital does not provide food to in-patients and each inpatientcomes with at least one care-taker. Some <strong>of</strong> them bring food and drinks from home, many buythem at the shops in the outside trading centre. Depending on their length <strong>of</strong> stay, all <strong>of</strong> them end upspending some money in the trading centre.Eighty three (83) caretakers <strong>of</strong> in-patients were randomly selected and interviewed from among the onesfound in the hospital wards during the study. Among other things, they were asked where they werecoming from and how much they spent on average every day in the trading centre outside the hospital.The minimum reported amount <strong>of</strong> money spent daily was USh 400 and the maximum was USh 40,000. Theaverage was USh 6,451 and the median was USh 5,000. Given the wide range <strong>of</strong> values, the team took themedian as being more representative. Of the people interviewed, 45 (54%) came from outside Gulu Districtwhile 38 (46%) came from within Gulu District (three from Lacor area, 10 from Gulu Town and 25 from thewider District).In the FY 2010/2011 the total number <strong>of</strong> admissions was 26,396 and the average length <strong>of</strong> stay 6.5 days.Multiplying the median <strong>of</strong> the reported daily expenditures by the number <strong>of</strong> admissions and by the averagelength <strong>of</strong> stay, the team assumed that the contribution <strong>of</strong> the in-patients and their care-takers to the localeconomy, in the FY 2010/2011, was USh 857,870,000 that is, US $ 369,294.07.8.3 Expenditures by out-patientsDuring the year 2010/2011 the hospital received 166,683 out-patients. Most <strong>of</strong> them come and go usinglocal transport. Many buy some snacks and drinks when they arrive, before leaving, while waiting for theresults <strong>of</strong> medical examinations and investigations. Others, again, buy something at the trading centrebefore going back home.The team interviewed 144 out-patients on different days over a period <strong>of</strong> three days and at different times<strong>of</strong> the day. For food, drinks and other small items, findings revealed an average expenditure <strong>of</strong> USh 2,697and a median <strong>of</strong> 2,000. The study team then, multiplied the median values for the total number <strong>of</strong> outpatientsreceived by the hospital in 2010/2011 and obtained the total amount <strong>of</strong> USh 333,366,000 (Us $143,507).As for transport, the study did not consider the money spent to come to the hospital by patients fromoutside Gulu since it was not paid to local transporters. However, the money spent to go back wasconsidered since this is paid to local transporters. The average expenditure was USh 10,550 and the
30median USh 8,000. Multiplying the median by the number <strong>of</strong> out-patients in 2010/2011 obtained theamount <strong>of</strong> USh 1,333,464,000 (US $ 574,027).Adding up the estimated total expenditures <strong>of</strong> out-patients for food and non-food items and for transport,the total amount is USh 1,666,830,000 (US $ 717,533).The 2003 study did not analyze the expenditures made by in-patients and their care-takers and by outpatients.This probably led to a considerable underestimation <strong>of</strong> the Lacor Hospital indirect contribution tothe local economy.The study team is aware that the assumptions on which calculations are based are debatable. However, theteam also believes that the assumptions have an intrinsic logic and can give reasonable approximation tothe reality.Excluding the expenditures <strong>of</strong> out and in-patients could certainly lead to a significant underestimate <strong>of</strong> thefinancial amount <strong>of</strong> money flowing into the local economy because <strong>of</strong> the presence <strong>of</strong> the hospital.07.9 The ripple effectThe ripple (or multiplier) effect <strong>of</strong> the funds injected by the Lacor Hospital Complex into the local economywas calculated using the formula proposed by Coppedge in 1970 which is still widely used: 1/ 1- (x) (y) (z).In this study:• x is the percentage <strong>of</strong> income coming from outside Gulu District that Lacor Hospital Complex spent• y is the percentage <strong>of</strong> the Lacor Hospital Complex expenditures carried out within Gulu District(including salaries, payment to suppliers, unpaid patients debts, expenditures <strong>of</strong> the convent andmonastery attached to the hospital)• z is the percentage <strong>of</strong> income spent by small scale businesses <strong>of</strong> the Lacor Trading Centre withinGulu DistrictThe team chose to calculate z on the basis <strong>of</strong> the spending patterns <strong>of</strong> the various businesses operating inthe Lacor trading centre because it is here that the bulk <strong>of</strong> the money flowing from and through LacorHospital to the local economy ends up.The interviews carried out revealed that 71% <strong>of</strong> the small businesses owners buy their supplies exclusivelyin Gulu. The remaining 29% buy their supplies both in Gulu and outside it, mainly in the nearby districts <strong>of</strong>Amuru, Nwoya and Oyam.• The team estimated that the 71% <strong>of</strong> business owners who make purchases exclusively within Guluspend around 95% <strong>of</strong> their funds for re-stocking their business and for their personal and familyneeds. The remaining 29% <strong>of</strong> traders spend about 80% <strong>of</strong> their income in Gulu• From the answers obtained, calculated was the estimated income <strong>of</strong> these 71% <strong>of</strong> business ownersand this amounted to about 58% <strong>of</strong> the total income <strong>of</strong> all the traders included in the sample <strong>of</strong> 80small scale businesses.• It is assumed that this sample is representative <strong>of</strong> the whole <strong>of</strong> the trading centre, and so it can betaken that 95% <strong>of</strong> 58% the total income <strong>of</strong> the trading centre is spent in Gulu District; (.95*.58 =.55) implying that 55% <strong>of</strong> the trading centre income is actually spent within Gulu District.• About 80% <strong>of</strong> the remaining 42% <strong>of</strong> the trading centre income is spent within Gulu District (.8*.42 =.33)
Page 1: The importanceof L
Page 5 and 6: 4Executive summarySt Mary’s Lacor
Page 7 and 8: 601. IntroductionThe “health care
Page 9: 8The rapid and significant price in
Page 12 and 13: 1103.1 Gulu DistrictHaving been, fo
Page 14 and 15: 13In the course of
Page 16 and 17: 15The induced effects are linked to
Page 18 and 19: 17It would have been possible to ad
Page 20 and 21: 1907. Findings07.1.1 Lacor Hospital
Page 22 and 23: 2107.3 Personnel related expenditur
Page 24 and 25: 2307.7 Lacor Hospital personnel spe
Page 26 and 27: 2530%. As everywhere, it seems that
Page 28 and 29: 27With loans and salaries advances
Page 32 and 33: 31From the records, we have: x = US
Page 34 and 35: 33possible to compare Lacor fees wi
Page 36 and 37: 35The small businesses operating in
Page 38 and 39: 37Of the total amount of</s
Page 40 and 41: 39ReferencesBank of</strong
Page 42 and 43: 41Annex 1: Type of
Page 44 and 45: 43Annex 3: Methodology details1. St
Page 46 and 47: 45entered for the sof</stro
Page 48 and 49: 47Sample size = 90x10/2.5 2 = 144 o
Page 50 and 51: 49Annex 4: Questionnaires used in t
Page 52 and 53: 51Questionnaire 2:Casual workers at
Page 54 and 55: 53Questionnaire 4:Small scale busin
Page 56 and 57: 55Questionnaire 6In-patients care t

Importance of LH on the local economy - Lacor Hospital > Home

Create successful ePaper yourself

Delete template?

Save as template?