Cost and Effective Analysis of the LINKAGES ... - Linkages Project

Based on this analysis, LINKAGES may be able to improve its cost effectiveness by:• Lowering the cost of LAM interventions by mainstreaming LAM• Targeting activities in areas with low LAM baseline ratesThe cost structure of interventions is such that most of the costs are fixed costs and activity costs arenot tied to the target population. Mainstreaming LAM into an integrated package of existing MCHactivities will allow spreading those costs across several interventions resulting in lower cost perintervention.An analysis of marginal costs shows that there is a clear relationship between selecting areas with lowbaseline rates of the targeted behavior and cost effectiveness. LINKAGES may improve its costeffectiveness by targeting areas with lower baseline rates.Determination of an optimal population size that the intervention activities should target appears to beanother important factor in achieving cost effectiveness. The limited data suggest that the package ofactivities may need to be adjusted once the target population exceeds certain levels. When thisthreshold is reached, a further increase of the target population results in decreased cost effectivenesssince the program costs grow at a higher pace than the target population. If this threshold is notreached, however, and economies of scale may be gained, increasing the target population size mayimprove cost effectiveness.One important limitation of this study is that it does not allow for the analysis of the costeffectiveness of individual activities or of the optimal mix of activities. Thus, no recommendation canbe made regarding ways to improve cost effectiveness by manipulating the package of activities.26 6. Findings LINKAGES Project/AED