Price elasticity of demand for psychiatric consultation in a Nigerian psychiatric service.

Oluyomi Esan
Department of Psychiatry, University of Ibadan, University College Hospital, PMB 5116, Ibadan, Nigeria.
African Health Sciences Vol 16 Issue 4, December, 2016

Abstract:
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.

Keywords: Price Elasticity of Demand (PED), outpatient psychiatric clinic, Nigerian.