The Effect of User Charges on the Pattern of Health Care Demand in Nigeria |Biomedgrid

The economic downturn in early 1980s in Nigeria led to the introduction and implementation of user charges in government health care facilities. This coupled with the persistent poverty level in Nigeria raises the question of consumers' ability and willingness to pay these user charges. Accordingly, using primary data, this study examined the possible trade-off between user charges and demand for government health services in Nigeria. The analysis showed that increasing user fees substantially reduced the use of government health facility by low-income earners. Thus, it was recommended, among others, that government should introduce price discrimination into user fees, to be set at marginal cost. This would help avoid the adverse distribution effects of user-fees, especially, on the lower income group.