DETERMINANTS OF OUT-OF-POCKET HEALTH EXPENDITURE FOR OUTPATIENT TREATMENT OF CHILDREN UNDER 5 IN BANGLADESH

Abstract

The healthcare financing system in Bangladesh is predominantly characterized by out-of-pocket (OOP) health expenditure. However, despite the implementation of a strategy designed to alleviate this issue, OOP health expenditures continue to rise. This study aims to analyze the determinants of OOP health expenditure for ill children under 5, utilizing data from the Bangladesh Household Income and Expenditure Survey, 2016. The data indicate that 68.58% of the total OOP health expenditure is allocated to the purchase of medication. The ordinary least squares (OLS) method is employed to examine the factors influencing OOP health expenditure. The key findings indicate that OOP health expenditure for seeking outpatient care for female children is lower than that for male children, and children residing in urban areas are associated with higher OOP expenditure compared to those in rural areas. Additionally, the age of the child, types of illnesses, types of healthcare providers, delayed treatment, and sources of medicine significantly impact OOP health expenditure. Addressing these issues requires government intervention to reduce discrimination and regulate the price of medicine. It is also noteworthy that OOP health expenditure for children whose mothers have an income is lower, which warrants further investigation.