Tuberculosis Care in Indonesia: A Financial Analysis of Strategic Purchasing in Medan

By Charmi Patel

June 24, 2024

Introduction

Tuberculosis (TB) remains a significant public health challenge globally, particularly in low- and middle-income countries. Effective TB control requires not only robust clinical interventions but also efficient health financing mechanisms. Traditional payment models, such as fixed capitation payments, often fall short in addressing the complexities and costs associated with TB diagnosis and treatment. Despite 88.6% National Health Insurance (NHI) scheme (Jaminan Kesehatan Nasional) coverage, 38.4% of TB-affected households face catastrophic costs, with out-of-pocket spending exceeding 20% of income due to high TB service expenses, over-referrals to hospitals, and gaps in coverage.

Financial Impact Analysis

Experts developed a budget impact model to assess the cost-effectiveness of strategic purchasing in improving TB reporting and treatment success rates. The model predicts a substantial increase in TB reporting by 63% and successful treatments by 64% under strategic purchasing. Consequently, this would lead to a 60% rise in total spending on TB care. Yet, the cost per patient is expected to drop by 3% with care shifting to cost-effective primary healthcare settings, reflecting increased diagnostic costs.

Results and Implications

The analysis indicates that while strategic purchasing may initially raise overall spending on TB care, it can significantly enhance TB care in Indonesia. By identifying more cases, treating them more effectively, and consequently reducing the cost per patient, strategic purchasing offers a promising avenue for improving TB care delivery. The model projects a 64% surge in TB case notifications and a 64.5% boost in successful treatment under strategic purchasing, thereby leading to advancement of cost-effective care and improving health outcomes.

Table 2: Comparison between the current and proposed scenarios, showing the impact on vertical referrals, confirmed TB cases notified, and TB patients completing treatment.
Table 1: Comparison between the current and proposed scenarios, showing the impact on vertical referrals, confirmed TB cases notified, and TB patients completing treatment.

 

Figure 3: The cost-effectiveness of the proposed strategic health purchasing approach under different scenarios of treatment success rates.
Figure 1: The cost-effectiveness of the proposed strategic health purchasing approach under different scenarios of treatment success rates.

 

Table 5: This table breaks down the costs for different payers (NHI, central and local government, Global Fund, and out-of-pocket) under the current and proposed scenarios, highlighting the financial implications of the new approach.
Table 2: This table breaks down the costs for different payers (NHI, central and local government, Global Fund, and out-of-pocket) under the current and proposed scenarios, highlighting the financial implications of the new approach.

Conclusion

In conclusion, strategic purchasing presents a viable strategy to address Indonesia’s TB burden effectively. By incentivising primary healthcare providers and promoting efficient care, this approach transforms TB accessibility, treatment effectiveness, and cost-efficiency. Furthermore, the financial analysis emphasises strategic purchasing benefits, stressing aligning incentives with quality care for sustainable TB control strategies.

Reference url

Recent Posts

340B Drug Pricing Lawsuit
      

Lawsuits Challenge 340B Drug Pricing Program: Eli Lilly and J&J vs. HRSA

🤔 How will ongoing legal battles shape the future of the 340B Drug Pricing Program?

Eli Lilly and Johnson & Johnson are challenging HRSA’s proposed rebate models, arguing that their approaches are essential for enhancing transparency and ensuring discounts directly benefit vulnerable patients. This crucial legal dispute highlights the tensions surrounding drug pricing regulations and could profoundly impact how discounts are provided to covered entities.

Dive into the details of these lawsuits and their implications for the pharmaceutical landscape.

#SyenzaNews #pharmaceuticals #healthcarepolicy #innovation #DrugPricing

WHO Investment Round 2023
    

WHO Investment Round: Securing Funding with Transparency Challenges

🌍 How can global health initiatives thrive with increased funding?

The WHO Investment Round is a pivotal initiative striving to secure $7.1 billion for essential health programs from 2025 to 2028. While achieving 53% of this target via diverse donor engagement, transparency in funding remains a challenge. Discover how these efforts can accelerate progress towards universal health coverage and tackle critical health issues like malaria and cervical cancer!

#SyenzaNews #globalhealth #universalhealthcoverage #healthcare #innovation

HPV vaccination South Africa
    

HPV vaccination South Africa: Cervical Cancer Prevention

🌍 How is South Africa leading the charge against cervical cancer?

Since launching its HPV vaccination program, the country has made remarkable strides in protecting future generations. With impressive coverage rates and a focus on at-risk populations, South Africa serves as a global model for effective public health strategies. Discover how this initiative not only combats cervical cancer but also addresses broader health concerns.

#SyenzaNews #HealthTech #GlobalHealth #HealthcareInnovation #CervicalCancer #HPVVaccination

When you partner with Syenza, it’s like a Nuclear Fusion.

Our expertise are combined with yours, and we contribute clinical expertise and advanced degrees in health policy, health economics, systems analysis, public finance, business, and project management. You’ll also feel our high-impact global and local perspectives with cultural intelligence.

SPEAK WITH US

CORRESPONDENCE ADDRESS

1950 W. Corporate Way, Suite 95478
Anaheim, CA 92801, USA

© 2024 Syenza™. All rights reserved.