(DP 2004-14) The Economic Burden of Tuberculosis and the Need for Private Sector Initiatives

Abstract

Despite the unrelenting effort by the government, tuberculosis still poses a major health risk and remains today a leading cause of morbidity and mortality. In 2003 prices, the economic cost of TB – measured here as the aggregate loss in income estimated based on a selection model of income differential between those with TB and those without it - is about 3.26 billion pesos per annum. In comparison to direct medical costs of DOTS treatment, this estimate exceeds the low-end estimate of 1.81 billion pesos per annum and approximates the high-end estimate of 3.73 billion pesos per annum. Arguably, therefore, TB control is economically viable, but which requires wider private sector participation. However, despite the fact that many TB patients work or seek treatment in the private sector, the private sector’s role in the country’s TB control program has, until recently, not been articulated, as revealed by the inventory of TB and other relevant policies. Increased private sector participation, however, is now expected with the PhilHealth’s TB-outpatient benefit package, but whose design and implementation must be strengthened to make it a wider window of opportunity.