African Health Sciences
Makerere University Medical School
Vol. 16, No. 4, 2016, pp. 1018-1022
Bioline Code: hs16132
Full paper language: English
Document type: Research Article
Document available free of charge
African Health Sciences, Vol. 16, No. 4, 2016, pp. 1018-1022
© Copyright 2016 - African Health Sciences
Price elasticity of demand for psychiatric consultation in a Nigerian psychiatric service.|
Objective: This paper addresses price elasticity of demand (PED) in a region where most patients make payments for consultations
out of pocket. PED is a measure of the responsiveness of the quantity demanded of goods or services to changes in price.
The study was done in the context of an outpatient psychiatric clinic in a sub –Saharan African country.
Methods: The study was performed at the University College Hospital (UCH), Ibadan, Nigeria. Aggregate data were collected
on weekly clinic attendance over a 24- month period October 2008 - September 2010 representing 12 months before, to
12months after a 67% increase in price of outpatient psychiatric consultation. The average weekly clinic attendance prior to the
increase was compared to the average clinic attendance after the price increase. Arc-PED for consultation was also estimated.
Results: Clinic attendance dropped immediately and significantly in the weeks following the price increase. There was a 34.4%
reduction in average weekly clinic attendance. Arc-PED for psychiatric consultation was -0.85.
Conclusion: In comparison to reported PED on health care goods and services, this study finds a relatively high PED in psychiatric
consultation following an increase in price of user fees of psychiatric consultation.
Price Elasticity of Demand (PED); outpatient psychiatric clinic; Nigerian.