informal markets

72
1 UNDERSTANDING & INTERVENING IN INFORMAL MARKETS IN HEALTH LIGHTNING TALKS FROM FUTURE HEALTH SYSTEMS RESEARCH CONSORTIUM

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Page 1: Informal markets

1

UNDERSTANDING & INTERVENING IN INFORMAL

MARKETS IN HEALTH

LIGHTNING TALKS FROMFUTURE HEALTH SYSTEMS RESEARCH CONSORTIUM

Page 2: Informal markets
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Understanding Informal Markets: a Framework for Analysis

Gerald Bloom

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Spread of health related markets Out-of pocket payments are a substantial

proportion of health expenditure There are a variety of suppliers of drugs and

providers of health services (in terms of training, organization and relationship to formal structures)

Boundaries between public and private are blurred

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Simple interventions may not work

Training on good practice may have little impact if incentives are unchanged

Formal regulations may be unenforced and informal relationships are often influential

Markets for health goods and health services are inter-twined

Politics and power relationships influence outcomes

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Health market systems Providers and users Coordination and regulation by non-state

actors Knowledge intermediaries and asymmetric

information The use of government legal, financial and

convening powers

skills, capacities, incentives and power relationships

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Building institutions for improved performance Analysis of structure and functioning of market

system (incentives and formal and informal relationships)

Understand expectations and norms of behavior matter

Learning approach to the construction of legitimate institutions and a revised social contract

Importance of systematic information on what works and on unintended outcomes

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The Underground Rural Healthcare Market: The case of Rural Medical

Practitioners in India

Barun Kanjilal

Page 9: Informal markets

Problem

Rural Medical Practitioners (RMP) – people practicing modern (allopathic) medicines without formal training - dominate the Indian outpatient market even though they are ‘illegal’.

Dilemma in policy making silence / neglect

Are market based economic interpretations the reason for policy failure? Can institution-based theories help?

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Research on RMPs in West Bengal: some key findings

More than half (60%) of rural outpatient market share No significant difference in price / access barriers with

government providers (average distance or OOPE) Positive effects

(1) high success rates in treating common diseases(2) up-to-date on latest drugs

Threats Indiscriminate use of antibiotics Minor / major surgeries Gradual penetration to inpatient care market

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An Alternative Approach to Looking at Rural Outpatient Care Market

Clients’ Health outcom

e

Drug detaile

rs

Private qualified providers

RMPs

Government providers

Market factors

Institutional Factors

Contract monitoring

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Understanding the spread of RMPs through institutional economics: an alternative framework

Supportive informal institutions Incomplete contract Social and political sanctions Tacit support from formal sector

Trust Bounded rationality

Low transaction cost Reduced uncertainty in transaction User friendly negotiations Vertical integration (consultancy + drug dispensing)

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Knowledge, legitimacy and economic practice in informal markets for medicine:

a critical review of research

Jamie Cross and Hayley MacGregor

Soc Science and Med 71 (2010) 1593-1600

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The problem of informal providers

The framing of informal providers as problematic

Uncertainties over a definition: who are they?people who ‘operate on the margins of legitimacy’ Pinto 2004

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Knowledge economies

Understandings of expertise and legitimacy

Practices of boundary making and fuzzy boundaries

Acknowledging the existence of hybrid practices

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Markets, medicine and morality of exchange

Expectations about how economic actors in the medical marketplace will behave

Reality of complex transactions embedded in broader social relationships

Need to rethink understandings of a ‘moral economy of care’

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Conclusion

Must consider the role of informal providers in the pharmaceutical supply chain – need shift in attention upwards

Debates about regulation and responsibility for safety cannot exclude an analysis of the role of the pharmaceutical industry

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Informal providers in low and middle income countries - A review of the

effectiveness of interventions

Nirali M. Shah

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Methods / Inclusion Criteria

Peer-reviewed and grey literature Searched through PubMed, Google and Global

Health Database Published between Jan. 1993 and May

2008 Identifiable intervention

Used list of keywords for interventions Providers “intervened upon” identified as

IPP Used list of keywords for types of IPP

Page 20: Informal markets

Definition of Informal Private Provider

Provide allopathic treatment and services Without formal training in allopathic

medicine, or providing services beyond level of training

Exist in health services market Volunteers and providers affiliated with state,

NGO or research study excluded Examples: TBA, drug shop worker,

unqualified doctor, CHW

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Interventions by medical condition

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Direction and type of outcome for FP/RH studies

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Percentage of provider behavior and knowledge outcomes that are positive, by type of provider

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Conclusions

Evidence base is limited; dearth of studies with strong research designs

Costs and details of intervention strategies not reported

Strategies applying market based incentives more successful than training

Successful strategy combinations included training+referral system, training+accreditation

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“LIGHTNING” RESPONSES

• Other ideas• Comments• “Big questions” for later discussion

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Exploring the Effect of Drug Detailing on Village Doctors in Chakaria, Bangladesh

M. Hafizur Rahman

Page 27: Informal markets

Who are the Village Doctors?

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Background Informal health care providers deliver a

significant proportion of health care services (40-60%) for the poor despite irrational use and over prescribing of drugs

Promotion of drugs by medical representatives (MR) is known to influence provider practices

Little is known about the influence of MR on informal providers

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Objectives

To describe the job characteristics of medical representatives, and differences in promotional practices

To identify the incentives offered to informal village doctors

To compare the training, knowledge and practices of medical representatives and village doctors

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Study sites

84  village doctors (44%) and 43 MRs (17%) of the study areas

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Education/Training of MR Average length of training – 41.5 days Refresher training - 1-2 trainings per year

to several times per month MRs learn from company literature,

pamphlets, internet, and phone calls to company’s product management department

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Information provided by MR

For all village doctors – MRs as principal and often sole source of information

Literature vs package inserts “The literature is in English and contains

complicated words which are difficult to understand. (The meanings of which) Even the MRs don’t understand”

“(The package inserts are) Very helpful, more helpful than the literature provided by the MR”

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Inaccurate information; village doctors depend on prior knowledge and experience

Describe the benefits but often miss out the harmful effects“Chloramphenicol is not good for

children but MRs do not say this. They never talk about the bad effects. In this way MRs are silent killers, they kill by omission.”

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Incentives offered Grades the health care providers as A, B,

C, D (A+, A++ if exceeds the expected number of prescriptions)

IncentivesDiscounts/Samples –usually 2-3%. Gifts (e.g. chair, stethoscope, mobile phoneCredits – pay back time varies from 5 days to

1-3 months. Small companies - flexible credit limits

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Characteristics of Medical Representatives and Village Doctors

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N=43 N=83Age (in years) Mean (+SD) 31.1(+4.8) 38.5(+12.4) <0.01Family size Mean (+SD) 4.7(+2.4) 5.8(+3.2) <0.05Monthly household expenditure Median (in Taka) 13,000 8,000 <0.001Education n(%) n(%) Secondary (10th grade) 0(0) 19(23.2) <0.001 College (12th grade) 1(2.3) 50(61) Gradute 24(55.8) 13(15.9) Post-graduate 18(41.9) 0(0)Alternative source of income+ n(%) Selling medicine from own shops - 66(79.5) Agriculture - 26(31.3) Shrimp/Fish culture - 6(7.2) Other - 14(16.9)+ Multiple responses

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Conclusions The MRs are an important source of pharmaceutical

information for village doctors. The incentives offered by pharmaceutical companies to

medical representatives encourage aggressive promotional practices that differ for informal versus formal providers.

The fact that MRs are more educated and financially better off than village doctors might strengthen their position to affect prescribing practices of village doctors.

Creative regulation to promote ethical promotional practices by pharmaceutical companies and their representatives could improve the prescribing habits of village doctors.

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Informal Markets in Sexual and Reproductive Health Services and Commodities in Rural and

Urban Bangladesh

Sabina Rashid, Hilary Standing and Owasim Akram

Page 38: Informal markets

Background Little attention has been paid to informal medical markets for sexual

and reproductive health (SRH) services in Bangladesh The public sector provides limited services or support for SRH; a large

informal market has developed 33 percent of doctors with an MBBS degree and 51 percent of

specialists who are public sector personnel are involved in private practice

> 85% of population is treated by informal providers. They include homeopaths, birth attendants, village doctors (“quacks”), unregistered pharmacists and faith healers

It is important to examine the characteristics of the informal market for SRH, showing how supply and demand mutually reinforce the development of this flourishing market, especially in the absence of high quality formal provision

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Characteristics of the providers

303 providers: 62% male; 38% female Mean experience: 17.6 years 76 (25%) had institutional degrees 190 (63%) did not have any recognition 75% said that healing was their main

profession, 25% practised it as a side business

33% charged a fee for their services 15% received gifts in kind 13% did not charge for consultations but

charged for the costs of medicines

Page 40: Informal markets

Characteristics of the providers (2)

41

Formal (n=84) (Govt./Private/NGO Hospitals,

clinics, Privately practicing MBBS doctors)

Independent Operators (n=191)

(Village doctors, pharmacist, homeopath, birth attendants, roadside healers, kabiraj, hakim etc.)

Faith Healers (n=28) (Ojha, pir, fakir, hujur etc.) Type of Providers

Formal28%

Independent Operators

63%

Faith Healers9%

Page 41: Informal markets

Men’s and Women’s use of the SRH Market

Men Women Type of Provider Fre. % Fre. % Village Doctor 68 21.9 75 24.0 Drug seller/Pharmacy 57 18.3 24 7.7 MBBS doctor 47 15.1 79 25.3 Homeopath 31 10.0 18 5.8 Kabiraj/Hakim 22 07.0 6 1.9 Govt Health Center 11 03.5 36 11.5 Roadside Healer 3 01.0 - - Faith Healer 2 00.6 21 6.7 Private Hospital 1 00.3 7 2.2 Family Planning Worker - - 14 4.5 TBA - - 10 3.2 NGO Health Worker - - 6 1.9 NGO Clinic - - 4 1.3 Friends and Relative - - 1 0.3 Don't know 69 22.2 11 3.5 Total 311 100.0 312 100.0

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Whom did the men visit and for which concern?Concerns 1st Provider 2nd Provider 3rd Provider

Short Term Sexual Intercourse (Premature Ejaculation/ejaculation before coitus)

63 Suffered29 received treatment

MBBS Doctor (9)Drug Seller (5)Kabiraj/Hakim (4) Roadside Healer(3) Homeopath (3)Others (5)

Total = 29

MBBS Doctor (5)Homeopath (2)Govt. Hospital (2)others (3)

2nd round = 12

Drug Seller (2)Kabiraj/Hakim (2)Others (3)

3rd round = 7

Burning or Pain when urinating

35 suffered22 sought treatment

Drug Seller (5)Govt. Hospital (4) MBBS Doctor (3)Kabiraj/Hakim (2)Homeopath (2)Others (6)

Total = 22

MBBS Doctor (3)Drug Seller (2)Street Healer (1)Others (2)

2nd round = 8

MBBS Doctor (1) Homeopath (1)Friend (1)

3rd round = 3

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Whom did the women visit and for which concern?

Type of Problems 1st Provider 2nd Provider 3rd Provider

Sexual Relationship (discomfort/pain during intercourse, low sexual desire, inability to maintain arousal, unable to have complete satisfaction)[1]

46 suffered the problems. 25 received treatment

Total number of women -25Govt. healthcenter/hospital (8)MBBS doctor (7)Kabiraj (4)Drug seller (4)Hujur (1)Homeopath (1)

Total number of women -14Govt. health center/hospital (5)MBBS doctor (3)Hujur (2)Drug seller (2)Village doctor (1)Hawker drug seller (1)

Total number of women -7MBBS doctor (3)Drug seller (2)Homeopath (1)Govt. health center/hospital (1)

Itching, irritation and smelly discharge43 suffered the problem. 26 received treatment

Total number of women - 26MBBS doctor (7)Homeopath (5)Kabiraj (4)Drug seller (3)Govt. health center/hospital (3)Village doctor (2)FP worker (1)Family member (1)

Total number of women -10MBBS doctor (4)Hujur (3)Govt. health center/hospital (2)Drug seller (1)

Total number of women -6MBBS doctor (3)Drug seller (1)Govt. health center/hospital (1)Family member (1)

Prolapse37 suffered the problem. 17 received treatment

Total number of women --17Kabiraj (6)Govt. health center/hospital (4)MBBS doctor (4)Village doctor (1)FP worker (1)Family member (1)

Total number of women -7MBBS doctor (3)Hujur (1)Village doctor (1)FP worker (1)Govt. health center/hospital (1)

Total number of women -4MBBS doctor (3)Drug seller (1)

Page 44: Informal markets

Money Spent for Treatment

151 men suffered; 90 (60%) sought treatment Average money spent (for last concern): BDT

1468 (US$ 21); Average family income per month was BDT 6668 (US$ 94) per month.

273 women suffered;152 (55.7%) sought treatment

Average money spent (for last concern): 2374 taka (US$ 33); Average family income was 7105 (US$ 100) per month.

Page 45: Informal markets

Key Messages

Treatment is sought from a variety of providers of unclear benefit or quality

Treatment is costly–one third of income from their own income, rest taken as loans, credit, borrowed, selling assets

Many SRH concerns and anxieties, including possible sexually transmitted infections, are poorly addressed in government services; women use private providers for neglected or stigmatised SRH conditions

The market is responding to external influences, including widespread availability of over-the-counter pharmaceuticals and the rise of new sources of information

The very broad and gendered nature of the demand for SRH services suggests that ways to meet these needs may be more appropriate. Examples: quality assured provision of information on sexual health using a range of channels; support for improving the knowledge and skills of trusted providers

Page 46: Informal markets

Promoting improved performance of Private Medicine Vendors in providing access to appropriate drugs for malaria in Nigeria Oladimeji Oladepo

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How can PMVs provide better access to effective malaria prevention & treatment services?

The Central Question

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Nigeria Study: Malaria Treatment

Estimated 57.5 million cases and 225,000 deaths (25% of global malaria burden)

New policy to provide ACTs as 1st and 2nd line drugs- Low access through Public Sector

Little known about Patent Medicine Vendors (PMVs), the main source of treatment

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Proportion of total volume of all anti-malarials sold or distributed in the 1 week preceding survey

(Source ACTWATCH, 2010)

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54 Different Types of Anti-malarial Drugs Found

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Percent of Patent Medical Vendor Shops with Anti-Malarial Drugs

0

10

20

30

40

50

60

70

80

90

100

ACTs Monotherapyartusenates

Chloroquine Sulfadoxine-pyrimethamine

Other

Perc

ent o

f Sho

ps

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Other Key Findings

Low quality drugs cited as major problem by households, PMVs and Associations, government officials

Low confidence in government to regulate, but wide regional variation

PMVs know little about malaria policy change

Government officials knew little about PMV Associations

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Nigeria: New Intervention strategies New co-regulation with PMV

Associations, citizens groups, government

Training & certification of PMVs Quality Drug Testing for ACTs Mobile phone support on drugs,

referrals Increasing consumer knowledge and

engagement for monitoring

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Expanding partnerships, relationships and alignments of players (including opposing interest groups) improves PMVs and community capability (Social capital)

Placing IT (drug testing diagnostics and mobile phones) in PMVs hands strengthens the anti-malarial medicine supply chain (decreases PMVs opportunity for inadvertent purchasing and selling counterfeit drugs, and improves timely and quality data reporting)

Stimulating innovation from proposed strategies

Page 55: Informal markets

Outcomes National Malaria Control Programme

(NMCP) and FMOH adopted two intervention strategies (i.e. training and regulations for PMVs), and pilot testing them in a few states

NMCP appointed desk officers for PMV work

NMCP developed draft “National Guideline for Integrated Community Management of Malaria” which substantially includes PMVs

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Nigeria : Moving Forward Ready to test the effectiveness of low cost

diagnostics and mobile phone interventions on service delivery among Patent Medicine Vendors (PMVs)in 6 geopolitical Zones to: take full advantage of other critical points of

influence in the informal malaria treatment market

balance supply and demand side factors, and influence national policy/program adoption

Lack of funds hampers this effort Support needed to actualise this initiative

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Exploring New Health Markets: Experiences from Informal Transport Providers for Maternal Health Services in Eastern Uganda

G. Pariyo, C. Mayora, O. Okui, F.Ssengooba, D. Peters, D Serwadda, H. Lucas, G. Bloom, E. Ekirapa-Kiracho

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Introduction & Background• Up to 75% of deaths can be averted by

ensuring timely access to obstetric care and related maternal care-WHO

• Access to maternal health care is hindered by distance, geographical accessibility, cost of transport and transport networks.

• Yet in Uganda, transport in Uganda is privately organized-hard for poor to afford

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Aim To explore alternative transport

approaches that are rural-based and respond to the needs of clients seeking maternal health care services, cognizant of local operational contexts.

Page 60: Informal markets

Intervention: Quasi-Experimental

Vouchers for

transport

Vouchers for

maternal services

Maternal & newborn health services

Pregnant women & newborns in control

Maternal & newborn health services

Training Supervision

Supplies, drugs and equipment

Pregnant women &

newborns in intervention

Page 61: Informal markets

Results-1st ANC Utilization, Kamuli District

0500

1000150020002500300035004000

Month

1st A

NC v

isit

Intervention Control

Page 62: Informal markets

Institutional Deliveries-Kamuli District

0100200300400500600700

Month

Del

iver

ies

Intervention Control

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Benefits and challenges

Increased accessibility to services at affordable cost (initially $10-$12, now $5-$10 per delivery)

Mobilisation and sensitization of community especially mothers by transporters

Income generating activity for transporters (appox $150 monthly over and above operational costs-highly engaged)

However, challenges of difficulty in enforcement of regulations (traffic requirements)

Difficulty in organising informal associations to provide services especially rural settings

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Conclusions and Policy Implications

Transport appears to have been a major barrier to use of maternal health services, which can be overcome by affordable subsidies

Use of existing resources in innovative ways has the potential to improve maternal health outcomes (community capabilities)

Purely private health markets (transport markets) may not allow the poor to access the much needed maternal health care services

A form of Public-Private partnership framework in the health markets could overcome significant barrier to care

[Uganda]65

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Lessons from an intervention programme to make informal health care providers

effective in rural Bangladesh

Shehrin Shaila Mahmood, Abbas Bhuiya, M Iqbal, SMA Hanifi,M Shomik,Tania Wahed

Page 66: Informal markets

Background Bangladesh is one of the health workforce crisis countries in

the world with a shortage of over 60,000 doctors, 280,000 nurses and 483,000 technologists (BHW 2009)

The informal healthcare providers popularly known as Village Doctors dominate the health workforce occupying 95% of the share in Bangladesh

However, the quality of services provided by these Village Doctors are questionable

An intervention programme was carried out to reduce the harmful/inappropriate practices by the Village Doctors in Chakaria and to make them accountable to the villagers

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The Intervention Implement a training intervention for improving treatment

practices of Village Doctors in 11 commonly occurring illnesses in Chakaria: pneumonia, severe pneumonia, diarrhoea, hepatitis, malaria, tuberculosis, viral fever, obstructed labour, blood loss before labour, and blood loss after labour

Establish a membership-based-network involving trained and eligible Village Doctors branded as “Shasthya Sena” (Health Force)

Form a monitoring committee, known as local health watch to monitor practice pattern of joining members to ensure adherence to certain clinical and public health standards

6868

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Results

Number of Village Doctors offered training= 157

Number of Village Doctors joining the training programme=157

Number of Village Doctors joining the Shasthya Sena Network=117

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Impact

70

93.9 92.487.1 91.7

0

20

40

60

80

100

Shasthya Sena Non-Shasthya Sena

% o

f pre

scrip

tion

BaselineEndline

P<0.001P>0.20

Figure: Proportion of prescription with inappropriate or harmful drug advice by the

Shasthya Senas and the non-Shasthya Senas at baseline and endline

• Inappropriate or harmful drug advice decreased more among the SS Group compared to the control group

• However, the Difference-in-difference test showed this change was not significant (P>0.10)

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Impact

P<0.05

Figure: Proportion of prescription with harmful drug advice by the Shasthya Senas and the

non-Shasthya Senas at baseline and endline O Proportion of harmful

drug advice increased among both the groups. However, the increase was lower in the SS group

O Test of Difference-in-difference came out to be insignificant (P>0.10)

Adherence to standard practices comes at the cost of lost profit in terms of decreased drug sell

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Concluding Remarks O Existing Village Doctors are enthusiastic about joining training

programmes and are keen to learn

O Networks like Shasthya Sena can be established to engage with the informal healthcare providers with an aim to improve their quality of service and to utilize this huge workforce in filling the void that is created in the formal healthcare system

O However, the intervention package of medical training and monitoring through local watch alone seems to be not enough to bring in the desired level of change in practice pattern of the Village Doctors

O Additional incentives need to be built into the system that can significantly improve their practice and ensure quality healthcare for the people in general and the poor in particular

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