Cost Recovery Potential of Takeo Hospital Cambodia

The objectives of this study are to estimate cost, revenue, unit cost, and the potential cost recovery of Takeo hospital in fiscal year 2003 from provider's perspective. This study is a retrospective study made by using the secondary data. The data have been collected from Takeo Hospital, earlier study report and Ministry of Health. The methodology involved in the study consists of 4 steps. The first step is to identify the total hospital cost and unit cost of each patients service cost center. The second step is to estimate the hospital revenue. The third step is to calculate cost recovery ratios for each of three reveue sources, namely, patients' fees, government contribution, and the others. The fourth step is the sensitivity analysis to identify cost recovery potential of the Takeo hospital. Total cost of Takeo hospital for year 2003 will be US$ 486,232.65 which can be divide into labor cost of US$ 196,818.64, material cost of US$270,141.33, and capital cost of US$19,272.68 (LC:0.40, MC: 0.56, CC: 0.04). The unit cost will be US$5.80 per OPD, US$ 42.25 per case for IPD, US$ 41.25 per surgery intervention. The sensitivity indicate that with fee increase by 10%, 20%, and 50%, the revenue also increase because of price inelasticity and populations growth. Cost recovery contributes of user fees increases from basline point 0.30 (with zero price increase) to 0.38, 0.42, and 0.58 (with 50% price increase). The total cost recovery ratio will be 0.78, 0.88, 1.13, while the estimate number of unaffordable will increase by US$393,471.40, US$411,160.45, and 479,008.52 respectively. Concerning with policy of the MOH and the National Charter on Health Financing, Takeo hospital cannot increase the revenue by increasing fee of charge as to many unaffordable cannot access the services. Obviously, Takeo hospital cannot survive in the future without additional government and foreign financial support.