Exploring the Determinants of Out- of- Pocket Expenditure on Healthcare in Kaduna Metropolis, Nigeria: Evidence from a Household Survey

Abstract

The objective of this paper is to explore the determinants of out- of- pocket spending from the analysis of households in Kaduna Metropolis, Nigeria. Using a logit model of regression approach and a sample of 225 households in the study area. The paper however, found evidence to suggest cost of patient’s admission due to illness, quality of health care services, households’ income, costs of drug due to illness and pattern of disease have positive and significant influence on how the out- of- pocket expenditure impacted on health care services in Kaduna Metropolis, Nigeria. The results also suggest that free health care services, social health insurance have a negative and significant influence on how out- of- pocket expenditure impacted on health care services in the study area. Based on these findings, it is obvious that there is a need to reduce the magnitude of disease occurrence in the study area. The cost of drug owing to payment for health care services and inadequate social insurance can be minimized by improving access to free health care services and increasing health care financing. This will reduce the burden of out- of- pocket spending and the level of health care service delivery will also increase. More so, there is also the need for government to regulate the activities of health care providers thereby enhancing and improving health financing through social health insurance like NHIS.