Unit Cost Analysis of Dengue Haemorrhagle Fever Prevention & Control in Region 10, Fiseal Year 2004

Abstract

                 Cost analysis in economics is a very important tool for rational and efficient resource allocation. Cost analysis can also be used to devise system for monetary compensation and support of dengue hemorrhagic fever (DHF) prevention and control programs. Objectives: The objectives of this study were to determine components and magnitude of cost in DHF prevention and control from the provider’s perspective and to assess the unit cost of DHF prevention and control in region 10. Method: This research was a descriptive study that collected one-year cost data retrospectively. The costs that were examined in this study were composed of labor cost, material cost and capital cost. In this study, the capital cost was the depreciation cost of only relevant equipment. Areas of study were randomly selected to be representatives of 2 clusters of large and small provinces. Lumphun and Lampang were chosen as representatives of small and large provincial clusters respectively. Data were collected from all agencies who were involved in DHF prevention and control. Results: Selected provinces were found to have total cost of DHF prevention and control in the amount of 46,674,168.85 baht. Labor cost was totaled 25,248,065.38 bath and accounted for 54.09% of the total cost. While material cost and capital cost were 18,109,471.16 and 3,316,632.31 baht and accounted for 38.8% and 7.11% of the total cost respectively. The unit costs of DHF prevention and control were 36.43 baht per capita and 132.41 baht per household. The ratio of labor cost : material cost was equal to 7.61 : 5.46 : 1. Lumphun had unit costs of DHF prevention and control at 42.44 per capita and 156.66 baht per household, which were higher that those of Lampang at 37.87 baht per capita and 121.46 baht per household, respectively. Conclusion and comments: This study revealed that labor cost had the highest influence on the total cost, followed by material cost. Material cost varied with intensity of DHF prevention and control activities. In areas that need insecticides in prevention and control, the material cost would be higher. Since the depreciation cost of building was not included in the capital cost, it resulted in lower capital cost. If new equipment procurement or a new building is needed, the capital cost will be higher and increase the total cost of DHF prevention and control. Recommendation: In order to have the sensible cost that will be used in the planning for compensation and subsidization of the DHF prevention and control and the out-sourcing of external agencies, the cost analysis study should be conducted under the standard operation procedures and also evaluate resources needed for monitoring and control of operations, The findings will then result in the efficiency of operations under the result-based management approach.