Disinvestment and Health Spending Efficiency in Latin America and the Caribbean: A Case Study of Colombia

Abstract

Objectives

This study aims to measure and quantify the potential financial and health (opportunity cost) impact of disinvestment in 6 candidate health technologies in Colombia (cesarean delivery, preoperative chest x-ray, computed tomography scan for headaches with no warning signs, extended use of proton-pump inhibitors, antibiotics, and antihistamines in cold), identified by previous research.

Methods

We carried out a microcosting approach involving 4 steps: identifying required data, defining the baseline case for evaluation, estimating waste for each prioritized technology along with the potential financial impact of disinvestment, and quantifying the opportunity cost of reallocating these resources to selected cost-effective alternatives (best- buys), using different methodologies.

Results

Among the 6 technologies, inappropriate use of computed tomography scans generated the highest level of waste. If reallocated, these resources could enable 9029 additional women to receive 4 prenatal care visits, reducing the existing coverage gap by approximately 6.4%. Similar results are presented for other technologies.

Conclusions

Health systems in Latin America and the Caribbean (LAC) face financial pressures from rising healthcare costs, inflation, and limited economic growth. Strategic disinvestment can contribute to more sustainable health systems by rationalizing spending and improving health outcomes in Latin America and the Caribbean. This study showed the potential health effect of redirecting resources from wasteful or ineffective technologies to highly cost-effective interventions offering a practical pathway to narrow coverage gaps and improve health outcomes in the region.

Authors

Carolina Moreno-López Ramon Castano Pamela Gongora-Salazar Úrsula Giedion Ginna P. Saavedra Andrés I. Vecino-Ortiz

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