Kenya: Impact of Demonstration on Kenya's Healthcare Landscape

29 August 2023
analysis

Nairobi — In a world where the freedom to advocate for change and express dissent is a fundamental right, the impact of political demonstrations on crucial public services like healthcare delivery cannot be ignored.

This fundamental right, freedom of expression and right to peacefully assemble, serves as the heartbeat of thriving democracies, their effect on essential sectors is of critical concern.

Striking the delicate balance between exercising civil liberties and safeguarding the wellbeing of the population demands a nuanced examination of the relationships between political demonstrations and healthcare access.

We hope that the recently commenced bipartisan talks carries a mutually beneficial arrangement that holds the potential to foster economic recovery for Kenya and deliver tangible benefits to its citizens.

Whilst Kenya appears to be moving in a positive direction, it's important to acknowledge that the protests have left a significant impact on various sectors of the economy, each in distinct ways. In the realm of the Healthcare industry, the protests have yielded a range of effects, some of which might prove surprising.

Kenya Healthcare Federation and Smart Applications have collaborated to analyse the impact of 'Maandamano' on the healthcare value chain through business intelligence and analytics tool designed for data-driven decision-making, delved into these effects as witnessed across major cities and towns during this period.

"We deemed it crucial to delve into the repercussions of the demonstrations on the healthcare sector. In collaboration with Smart Applications International, a distinguished ICT provider in the healthcare domain with over two decades of industry experience, the Kenya Healthcare Federation undertook this endeavor.

Through this strategic partnership, Smart Applications harnessed data insights that serve as a guiding light for both our political leaders and healthcare business heads, fostering a clearer comprehension of the industry's dynamics.

This data-driven insight equips us to make informed decisions moving forward and hinging on the need for co-existence for economic growthWe are confident that this dataset will empower various stakeholders across our ecosystem to persistently work towards attaining comprehensive nationwide access to superior healthcare.

Additionally, it reinforces our commitment to collaborate with the government and pertinent stakeholders to enhance the provision of quality healthcare, harnessing the private sector's potential," remarked Dr. Tim Theuri, Chief Executive Officer of the Kenya Healthcare Federation.

The Saba Saba Demonstarations

During the Saba Saba demonstrations, which marked the initial wave, data analysis highlighted Mombasa, Nairobi, and Kisumu as the epicenters of these protests. In this context, Smart Applications International undertook a comparative study of these three regions, aiming to ascertain the impact on healthcare expenses throughout the period. This analysis encompassed a comparison between the week preceding Saba Saba and the week encompassing the demonstrations.

The below image from Smart's business intelligence and analytics dashboard provides a visual representation of the fluctuation in cost per visit and the average cost associated with each service. A negative percentage signifies a decline in cost, whereas a positive percentage indicates an elevation in cost. Consequently, areas witnessing an increase in revenue during the protests might be attributed to a corresponding increase in cost.

Key Findings:

Data analysis indicates that the surge in revenue observed during the Saba Saba demonstrations might be attributed to a concurrent rise in the average cost of healthcare services, such as consumables, consultations, procedures, medications, radiology, and laboratory tests. The subsequent breakdown presents the specific consumables that experienced an upswing in cost across the respective regions during the demonstrations.

  • In Nairobi: During the 7th of July demonstrations, the average cost of healthcare services increased as follows: procedure:15%, medication:4%, consultation:1.6%, laboratory:1.5%, and consumables:8%.
  • In Kisumu: During the 7th of July demonstrations, the average cost of healthcare services increased as follows: laboratory:1.1%, radiology:6.7%, and consumables:27.6%.
  • In Mombasa: During the 7th of July demonstrations, the average cost of healthcare services increased as follows: procedure:12%, and consumables:27%.

12th, and 19th-21st July Demonstrations

In the weeks that preceded, the demonstrations took place on the 12th, and 19th-21st July data analysis highlighted Mombasa, Nairobi, and Kisumu as the epicenters of these protests. In this context, Smart Applications International undertook a comparative study of these three regions, aiming to ascertain the impact on healthcare expenses throughout the period.

The below image from Smart's business intelligence and analytics dashboard provides a visual representation of the fluctuation in cost per visit and the average cost associated with each service. A negative percentage signifies a decline in cost, whereas a positive percentage indicates an elevation in cost. Consequently, areas witnessing an increase in revenue during the protests might be attributed to a corresponding increase in cost.

Key Findings:

The data analysis continues to underscore the persistent trend of an upsurge in the average cost of specific healthcare services during subsequent instances of demonstrations, notably on the 12th and the 19th-21st of July. This echoes the patterns observed during the initial Saba Saba demonstrations.

The noteworthy escalation in cost applies to a range of healthcare services, including consumables, consultations, procedures, medications, radiology, and laboratory tests. A closer examination reveals a discernible shift in cost dynamics for these services across the respective regions during the demonstrations."This enduring trend of increased healthcare service costs during periods of demonstration accentuates the need for deeper exploration into the underlying factors driving these shifts. A thorough understanding of these dynamics is

essential to formulate effective strategies to manage costs and ensure optimal healthcare delivery, even amidst challenging circumstances," pointed out Harrison Muiru, Group Managing Director, Smart Applications International.

In Nairobi:

  • During the 12Th of July demonstrations, the average cost of healthcare services increased as follows: procedure:1.5%, consultation:0.5%.
  • Between 19Th and 21St of July, the average cost of healthcare services increased as follows: Radiology:0.5% and medication:0.08%.

In Kisumu:

  • During the 12Th of July demonstrations, the average cost of healthcare services increased as follows: procedure:26%, consultation:21%, Laboratory:9%, and Medication:10%.
  • Between 19Th and 21St of July, the average cost of healthcare services increased as follows: Radiology:6%, Laboratory:1.6%, and medication:0.8%.

In Mombasa:

  • During the 12Th of July demonstrations, the average cost of healthcare services increased as follows: medication:5%.
  • Between 19Th and 21St of July, the average cost of healthcare services increased as follows: consultation:5.8%, consumables:10%, andradiology:4%.

Possible Factors:

Several factors can be identified as potential reasons for the observed increases in the average cost of specific healthcare services during the demonstrations:

  • Supply Chain Disruptions: The disruptions caused by the demonstrations may have led to challenges in the healthcare supply chain, potentially causing shortages or delays in obtaining essential medical supplies and equipment. This could result in higher costs for obtaining these items.
  • Increased Demand: Elevated demand for healthcare services during periods of unrest, such as demonstrations, can place additional strain on healthcare facilities. The increased patient load might lead to a rise in service costs as resources are stretched.
  • Operational Challenges: The disturbances may have caused operational challenges for healthcare providers, necessitating adjustments to their workflows and resources. These adjustments might have led to increased costs associated with maintaining the quality of care.
  • Safety Measures: Healthcare facilities might have implemented enhanced safety measures in response to the protests, requiring additional resources and protective equipment. These measures could contribute to the uptick in costs.

Limited Access to Facilities: Limited access to healthcare facilities due to demonstrations may have led to a concentration of patients seeking services

  • during shorter time frames. This surge in demand could lead to increased costs due to the need for more efficient service delivery.
  • Transportation and Logistics: Demonstrations can disrupt transportation networks, making it challenging for medical supplies and personnel to reach healthcare facilities. These disruptions might necessitate alternative, more costly transportation methods.
  • Market Uncertainty: Economic uncertainty during periods of unrest can impact pricing in various sectors, including healthcare. Suppliers might adjust their prices based on perceived risks and uncertainties.
  • Resource Allocation: The need to allocate resources for unexpected situations can result in reallocated budgets, potentially leading to increased costs in specific areas.

"Our findings aim to address hospitals, urging them to prepare for potential disruptions in patient flow during periods of unrest. Patients should anticipate heightened costs for emergency and specialist services. Leaders should anticipate potential encroachments on citizens' right to access healthcare and implement measures to safeguard this fundamental need," added Harrison Muiru, Group Managing Director, Smart Applications International.

Impact of Demonstrations on Revenue and Patient Traffic

For a more in-depth analysis, the Smart business intelligence and analytics tool delved further into the investigation, evaluating the impact on both Revenue and Patient Traffic in Nairobi, Kisumu, and Mombasa.

The following dashboard presents a visual representation of the fluctuation in revenue and patient traffic, illustrating how these two factors intertwine and ultimately influence each other.

Nairobi Facilities

Key Finding:

7Th of July:

  • The insights indicate an 11% increase in revenue during the Saba Saba demonstrations on the 7th of July (Friday), compared to the prior Friday on the 30th of June.
  • This upward trend may be linked to the nature and cost of the services delivered, considering there was a simultaneous 4.8% decrease in patient traffic between the two Fridays.

12Th of July:

  • The week of 12th July demos saw 16.8% less revenue vs. The prior week (7th July demo).
  • Patient traffic dipped 22% on 12th July, reflecting unrest's impact on healthcare use.
  • Patients' safety concerns during protests could have caused a revenue drop. People might delay or skip healthcare visits due to ongoing unrest, hurting facility revenue.

19Th-21St of July:

  • Week of 19th-21st July demos: 57% revenue drop vs. prior week (12th July demo).
  • Patient traffic dipped 25.6% on Thursday 20th July.
  • This could have been due to longer, more intense unrest over three days could have deterred patients from seeking healthcare services, causing revenue decline.
  • Thursday's 25.6% traffic drop might stem from patient concerns about ongoing demonstrations.

Kisumu Facilities

7Th of July:

  • The insights above reveal a 39.5% surge in revenue during the Saba Saba Friday in comparison to the preceding Friday.
  • Interestingly, this indicates that the Saba Saba demonstrations did not impact patient traffic or revenue. Concurrently, patient traffic saw a positive increase of 5.2%.
  • The notable 39.5% revenue increase during the Saba Saba Friday, despite ongoing demonstrations, could be linked to heightened demand for healthcare services driven by concerns arising from the protests.
  • This surge in patient visits might have contributed to the observed rise in revenue. Additionally, the 5.2% increase in patient traffic suggests that the demonstrations didn't deter individuals from seeking medical care.

12Th of July:

  • The week of the 12th of July demonstrations witnessed a 15.7% decline in revenue, in contrast to the preceding week which featured a demonstration solely on Friday, the 7th of July.
  • This indicates that the demonstrations on the 12th of July had an impact on revenue, but patient traffic remained unaffected. Moreover, patient traffic experienced a positive increase of 3.4%.
  • The 15.7% revenue decline during the 12th of July demonstrations could stem from disruptions caused by the demonstrations, deterring patients from seeking healthcare services. However, the 3.4% increase in patient traffic suggests that patient behavior was less influenced by the demonstrations.

19Th-21St of July:

  • During the week of the 19th-21st July demonstrations, there was a substantial 61% decline in revenue when compared to the preceding week, which included only a single day of demonstration (12th). Notably, the 19th-21st of July spanned three days of demonstrations.
  • The impact is evident in-patient traffic as well, with a significant 32% decrease observed. Moreover, on Thursday, the 20th, and Friday, the 21st, the decline in patient traffic was even more pronounced, at 83%.
  • The significant 61% revenue drop during the 19th-21st July demonstrations could stem from the prolonged and intensified demonstrations spanning three days. Patient uncertainty and safety concerns might have discouraged healthcare utilisation, impacting revenue.
  • The substantial 32% and 83% declines in patient traffic on Thursday, the 20th, and Friday, the 21st, respectively, could reflect patient apprehension due to the ongoing demonstrations, affecting their decision to seek medical care.

Mombasa Facilities

7Th of July:

  • The above insights highlight a 5% uptick in revenue during the Saba Saba demonstrations on the 7th of July, as compared to the preceding Friday.
  • Interestingly, this indicates that the Saba Saba demonstrations did not impact revenue, even though there was an 8.3% drop in traffic.
  • The 5% revenue increase during the Saba Saba demonstrations on the 7th of July, despite an 8.3% drop in traffic, could be attributed to patients seeking higher-cost healthcare services during the protests.
  • This suggests that while fewer patients visited, those who did may have required more extensive or expensive treatments, leading to the observed revenue rise.

12Th of July:

  • The week featuring the 12th of July demonstrations experienced a substantial 45% decline in revenue compared to the prior week, which included a demonstration solely on Friday, the 7th of July. This indicates a dual impact on both patient traffic and revenue due to the demonstrations. Moreover, the traffic also suffered a decline.
  • The significant 45% revenue decline during the week of the 12th of July demonstrations might be attributed to the protests' influence on patient behavior.
  • Patients could have been hesitant to seek healthcare services due to the unrest, resulting in both reduced patient traffic and revenue. Additionally, patients might have postponed or skipped non-essential treatments, further impacting revenue.

19Th-21St of July:

  • During the week of the 19th to 21st of July demonstrations, there was a substantial 58.3% decline in revenue on Thursday compared to the prior week, which had only one day of demonstration (12th July).
  • Meanwhile, the 19th to 21st of July period featured demonstrations across three days. Additionally, patient traffic experienced a notable 16.7% drop on Thursday 20th July and an even more significant 27% decrease on Friday.
  • The notable 58.3% decline in Thursday's revenue during the 19th to 21st of July demonstrations could be influenced by patients avoiding healthcare facilities due to safety concerns amidst the unrest.
  • This cautionary behaviour aligns with the simultaneous 16.7% drop in patient traffic on Thursday and the substantial 27% decrease on Friday, illustrating a clear correlation between the ongoing demonstrations and reduced healthcare engagement.

About Smart Applications International

Smart Applications International is a leading ICT solutions provider delivering a wide range of world-class technological solutions. Fondly known as Smart within the industry, the company was founded to provide innovative, secure, and high-tech solutions in Africa and beyond. Currently Smart has operations in more than 11 counties in Africa with over 7200 hospitals using our biometrics system and over 100 healthcare and insurance schemes.

About Kenya Healthcare Federation

Kenya Healthcare Federation (KHF) is the Health Sector Board of the Kenya Private Sector Alliance (KEPSA). Founded in 2004, the Federation works with care providers, hospitals, pharmaceutical manufacturers, and insurers to promote strategic public-private partnerships toward achieving national access to quality healthcare and is dedicated to engaging the government and all relevant stakeholders in achieving quality healthcare by maximizing the contribution of the private sector.

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