Socioeconomic Determinants of Household Out-of-Pocket Payments on Healthcare in Sri Lanka

Abstract

Since its independence, Sri Lanka has had a free health care policy, and out-of-pocket healthcare expense has increased over time. The study's primary goal is to investigate the factors influencing out-of-pocket healthcare spending in Sri Lanka. Secondary data from the Household Income and Expenditure Survey conducted by the Department of Census and Statistics in Sri Lanka in 2016 were used in this study. Data were analyzed using descriptive statistics and the Semi-Log regression model. The results of the Semi-Log regression model show that households with the urban residential sector, post-secondary education, and chronic conditions were significant positive predictors of out-of-pocket healthcare expenditure, while households with primary education were substantial negative predictors. Distance to maternity clinics has a strong beneficial influence on healthcare expenditure on the supply side. As a result, the findings demonstrate a compelling need to mitigate the adverse effects of growing healthcare costs. The government can enact new rules and regulations to protect households' ability to meet their healthcare needs by offering all healthcare facilities and expanding health infrastructure.