Catastrophic Health Expenditures and Its Socio-Economic Consequences: A Case Study of Tehsil Ali Pur (Pakistan)

Abstract

Health expenditures become catastrophic when they exceed a specific portion of the monthly income of the household. This study analyzed the socio-economic impact of catastrophic health expenditures in Tehsil Ali Pur, District Muzaffargarh (Pakistan). Data is collected through a semi-structured questionnaire from 270 households using a random sampling technique. The binary logistic regression model was used to analyze the relationship between health catastrophes and various other socio-economic variables. Study findings show that in the last three months, 61% of the targeted households faced catastrophic health expenditures. About 70% of the respondents confirmed that it had affected their daily consumption level, and 92% had lost their working days due to their health issues. Moreover, 74% of the respondents reported that they had managed health expenditures either by selling properties or by taking out loans. Results indicated that the probability of catastrophic health expenditures (CHE) decreases by 0.007 with a one-unit increase in income. In contrast, it increases by 0.545, 0.00019, and 0.313 with the increase in household size, health care cost, and chronic illnesses, respectively. It is recommended that health insurance policies or other safety nets be implemented to save poor households from the trap of poverty.