Professional Documents
Culture Documents
A Research Proposal
July 2007
1.0 INTRODUCTION
1.1 BACKGROUND
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at all levels of service delivery. Ineffective and inefficient health care systems
that are deficient in transparency and accountability lend room to corrupt
practices. It is important to note that corruption in the health care sector is
not exclusive to any particular type of the health care system. It occurs in all
systems, whether public or private, well funded or poorly funded, and
technically simple or sophisticated.
The Global Corruption Report, 2006 indicates that every year more than US $
3.1trillion is spend worldwide on health services with the bulk of the financing
by the governments. These large flows of funds are an attractive target for
abuse. The MDGs Status Report for Kenya , 2005, indicates that the Kenya
government increased the overall funding for health care in the financial year
(FY) 2005/006 by 30%,, increasing the sector’s share as a percentage of total
government expenditure from 8.6% in FY2004/2005 to 9.9% in the FY
2005/2006. The Report further indicates that 20% of LATF funds are to be
spent on core poverty programmes which are essentially MDGs- related
programmes. A recent government survey of the CDF funds indicates that
over 60% of this fund on average is spent on health, water and education in a
given constituency at any one time.
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implemented. A survey targeting both the healthcare providers and the
healthcare seekers as the key respondents is one such system that will allow
these objectives to be met.
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underestimate the challenges of governance and corruption in healthcare
delivery. The rush to endorse MDGs and translate these goals into real
programmes has largely overlooked the limited ability of institutions to
deliver. The need to identify and address corruption and weak governance is
often lost in the commitment to raise funds and expand services. Corruption
in the health care industry takes a serious toll both in monetary terms and
human suffering. Corrupt practices in the health sector include: informal
payment, fraudulent procurement and billing, inappropriate influence on the
regulatory process, selling expired drugs in altered package, absenteeism
among other malpractices, undermine the quality of health care and
medication with dire consequences.
These factors, Savedoff and Hussmann, 2006, state make the health sector is
the most complex sector in the society. They further explain that it is
characterised by a large number of dispersed actors, asymmetric information
and has specific mix of uncertainty. This is complicated by the fact that
patients are not in a position to shop around for the best price and quality
when they are ignorant of the costs, alternatives and precise nature of their
needs. The three features bedevilling the sector: uncertainty, asymmetric
information and the large number of actors help in propagation of corruption
and make it difficult to detect, punish and deter the malfeasance.
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Additionally, government regulation in the pharmaceutical industry while
essential to safeguard the citizens against sub–standard drugs and unfairly
priced goods makes this sector particularly prone to corruption. If regulators
are subject to pressure from commercial groups, health objectives can be
compromised. Due to the unpredictability of the health needs, governments
are unable to plan effectively for future medical needs which diminishes their
ability to resist offers of medicine at inflated prices or in excess quantities
and to detect corruption in such transactions.
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The main objective of this study is to assess the magnitude, nature and
impact of corruption in the Kenya’s public health care sector and the
healthcare systems. The specific objectives are to:
The Study seeks to explore the policy, legal and institutional frameworks
within the health sector and how they impact on the state of corruption and
governance. Thus areas of special focus will include corruption in
procurement of drugs and equipment, including construction; corruption
affecting provider –patient interaction, and financing within the public health
sector.
The study seeks to integrate anti-corruption strategies in the health sector with the overall
anti-corruption strategies at the national level. The paper intends to provide a benchmark
study for further research in this area.
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The public health systems consist of the following levels of health facilities:
i. National referral hospitals are the apex of the health care system,
providing sophisticated diagnostic, therapeutic and rehabilitative
services. The two are Kenyatta national Hospital and Moi referral
hospital.
ii. Provincial hospitals, which act as referral hospitals to the district
hospitals.
iii. District Hospitals which concentrate on the delivery of health care
services and generate their own expenditure plans and budget
requirements based on the guidelines from headquarters through the
provinces.
iv. Health Centers provide ambulatory health services. They generally
offer preventive and curative services that are inmost cases adapted
to the local needs.
v. Dispensaries are meant to be system’s first line of contact with
patients, but in some areas, health centers or even hospitals are
effectively the first points of contact. They provide wider coverage for
preventive and curative services, mostly adapted to needs.
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Health’s efforts to translate the policy objectives into implementation
programmes.
In renewed effort to improve the health service delivery, the MoH and
stakeholders reviewed the NHSSP-1 service delivery system in order to devise
a new strategy for making health care more effective and accessible to
people. These efforts led to the formulation of the Second Health Sector
Strategic Plan (NHSSP-II): 2005-2010 which puts more emphasis on
promotion of individual health as opposed to disease burden.
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A study by Norberg(2006) confirmed that on a macroeconomic level,
corruption limits economic growth , since private firms perceive corruption as
a sort of ‘tax’ that can be avoided by investing in less corrupt countries. In
turn, the lower economic growth results in less government revenue available
for investment, including investment in the health sector. Corruption also
affects government choices in how to invest revenue. Within the healthcare
sector, investments may also tend to favour construction of hospitals and
purchase of expensive, high tech equipment over primary health care
programmes such as immunization and family planning, for the same reason.
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Lewis (2006) further affirms that, while straight forward in concept, the
production function is far from simple and the market failures identified
above plague both private and public systems (principal agent and
information asymmetry problems) , which undermine incentives and limit the
extent of accountability.
Kaufmann et al, 2005, postulate a model that aims to explain the degree of
accessibility to a public service by the governance and corruption
characteristics of the public agency providing it:
Accessibility of public service=f (governance characteristic) = f (citizen voice,
quality of rules, audit mechanisms, effectiveness, resources, meritocracy,
mission, service performance, wage satisfaction, corruption)
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immunization and low- birth weight. The correlation in explaining the same
health outcomes is reduced once factors such as mother’s education, public
health spending, education and urbanization are controlled.
In measuring the impact of corruption on the effectiveness of health
spending, Rajkumar and Swarrop (2002) analyze data for the 1990 and 1997
controlling for GDP per capita, female educational attainment, ethno-
linguistic fractionalization, urbanization among other factors, and find that
the effectiveness of public health spending in reducing child mortality hinges
on the integrity rating, with higher integrity associated with reduced
mortality.
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Peter A Berman & Thomas LJ Bossert, ‘ A Decade of health sector Reform In Developing Countries:
What have we learned’ ( Boston, MA; Data for Decision making Project , Harvard School of Public Health,
2000)
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characteristics –diverging interest and incomplete information – are inherent
and widespread in the health sector. The principal agent problem s in the
health care sector have mainly been analyzed in terms of their impact on
health system efficiency, these same problems increase opportunities for
corruption. Savedoff (1998) further concurs that the difficulty of fully
monitoring the actions of doctors, hospitals, pharmaceutical companies and
regulators makes it hard to hold them accountable for the results of their
actions.
Akunyili (2006) established that unregulated medicines which are of sub-
therapeutic value can contribute to the development of drug resistant
organisms and increase pandemic disease spread. Additionally, corruption
could also lead to shortages of drugs available in government facilities, due
to theft and diversion to private pharmacies. Kassirer (2005) states those
promotional activities and other interactions between pharmaceutical
companies and physician, if not tightly regulated, can influence physicians to
engage in unethical practices. Wazana (2000) showed that these interactions
can lead to non –rational prescribing and increased costs with little or no
additional benefits.
Ensor (1997) availed evidence on corruption in the health systems with direct
public provision as being largely focused on informal, or illegal, payments for
services or transition economies. This form of corruption has a particularly
negative impact on access to care for the poor when they can not afford
these payments.
Dr. S Kumar (2003) affirms that the medical education system is to blame for
failing emphasis adequately on the humane aspects and also offering
insufficient training in managerial roles essential for success in the
hierarchical healthcare system.
4.0 METHODOLOGY
4.1 Research Design
The study will involve desks research where relevant and related
literature will be reviewed. In addition, quantitative and qualitative data
will be collected form identified respondents and key informants within
the health care sector and related sectors. A semi structured
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questionnaire and discussion guide will be designed to gather relevant
information from identified service providers and seekers.
The study will therefore:
i. Review policy, statutes and related documents to establish the
channels, types, causes of corruption and the policies and
regulation governing the sector and affiliate sectors.
ii. Analyse and synthesize information from the three diagnostic
surveys by KACC; Examination and Assessments reports on KEMSA,
Kenyatta National Hospital and the KACC and the Advisory Report
2006 on the Moi Referral Hospital.
iii. Incorporate interviews with consumers, providers, key informants
and other stakeholders within the public healthcare sector to
enhance the study.
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1. KEMSA 1. Quantitative and 1. Semi-structured
2. NACC quantitative data on questionnaire
3. KEMRI types, causes, impact through face to
4. Pharmacy & Poisons and areas prone to face interview
Board corruption
5. Ministry of Health • In-depth
2. Status of reforms on interviews
(officials of key
harmonization of • Review of
departments)
rules, regulations and statutes, policies,
6. Government Hospitals
policies in the health regulations &
(Referral institutions,
care industry other documents
provincial hospitals,
districts &
2. Analysis of
dispensaries)
relevant cases
7. National Hospital
Insurance Fund, (NHIF)
8. Private Healthcare
providers Medical
Insurance providers
9. Suppliers of non-
pharmaceutical
products
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An instrument will be developed to guide the review of documents including
relevant statutes, policies and regulations. For the qualitative data, a
discussion guide will be developed for each category of participants
(providers and healthcare seekers). Discussions and interviews will also be
conducted with key informants.
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5.1 Implementation Schedule:
Due to lack of consensus on scope of the study, I have not adjusted the budget. Some
members insist it should be more of a desk study with key informants involvement only.
Kindly advice.
14. Budget
Cost Item Quantity Day Unit Total
s Cost/Ra (Kshs)
te
Preparator
y
Research Instruments (Printing & 2500 20 50,000.00
Photocopying)
Training and pre-testing
workshop
Lunches and Teas (Field team 35 5 1000 175,000.00
including Commission staff)
RA’s training allowance & transport 25 5 500 62,500.00
287,500.0
Sub-Total 0
Fieldwork
Research Assistants (RAs) fee & 25 14 3500 1,225,000.
Subsistence 00
Field Supervisors (KACC Staff) - Per 6 14 5200 436,800.00
diem
Drivers’ night out allowances 6 14 3500 294,000.00
Sub-Total 2,125,200
.00
Data
manageme
nt
Data Coding & Entry Clerks' fee 10 15 2000 300,000.00
Sub-Total 1,260,000
.00
Grand Total 4,392,70
0.00
6.0 References
1. Akunyili D., The fight against counterfeit drugs in Nigeria, part 1.5 in
Transparency International’s Global Corruption Report 2006.
2. Berman P., & Bossert L.J T, ‘ A Decade of health sector Reform I Developing
Countries: What have we learned’ ( Boston, MA; Data for Decision making
Project , Harvard School of Public Health, 2000)
3. Ensor T., ‘What is the Role of State Health Care in Asian Transition economies?,
Health Economics 6 (5), 1997
4. Examination Report, 2005; procurement and Distribution of Drugs and Other
medical Supplies by the Ministry of Health and Kenya Medical Supplies Agency
5. Examination Report , 2003:The Management of Kenyatta National Hospital; Anti-
corruption Police Unit
6. Gupta S., Davoodi HR, Tiongson E, Corruption and the provision of health Care
and Education Services, Governance, Corruption and Economic Performance,
Washington , DC : International Monetary Fund, 2002.
7. Kassirer J., The Corrupting influence of money in Medicine, part 1.5 in
Transparency international’s Global Corruption Report 2006.
8. Kauffman D, Montoriol –Garriga J and Recanatini F. “How Does
Corruption Affect Public Service Delivery? Micro- Evidence from Service
Users and Public officals in Peru.
9. Lewis M, Governance and Corruption in Public health care systems (Centre for
Global Development, 2006).
10. Lewis M., ‘Tackling Health care corruption and governance woes in Developing
countries, CGD brief , working paper 78, Washington DC.2006
11. Ministry of Planning & National Development(Kenya) and United nations
Development in partnership with UNDP, Kenya and the government of Finland,
MDGs Status Report for Kenya, 2005
12. Savedoff D W, The Characteristics of Corruption in Different Health Systems,
2003, World Health organization , p6
13. Savedoff D. W., (ed), ‘Social services Viewed through New lenses’, Organization
matters: Agency problems in health and education in Latin America ( Washington
DC : IADB, 1998
14. Sparrow, M. K. "Corruption in Health Care Systems: The U.S.
Experience." Global Corruption Report 2006: Special Focus - Corruption
and Health. Ed. Transparency International. Pluto Press, 2006, 16-22.
15.UN Department of Economic and Social Affairs, Statistics Division, ‘
Millennium Development Goals: 2005 progress report’ NY: UN DESA,
2005
16.Vian T, Corruption and the health Sector, 2002, UAID and Management
Systems International ( MSI), p. 1, 2-3,28
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17.Wazana A., Physicians and the pharmaceutical Industry: is a gift ever
just a gift?, Journal of the American Medical Association,2000, 283:373-
380
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7.0 Appendix
7.1 Proposed tools