Health Gains and Financial Risk Protection Afforded by Treatment and Prevention of Diarrhea and Pneumonia in Ethiopia: An Extended Cost-Effectiveness Analysis

Authors: Stéphane Verguet, Clint Pecenka, Kjell Arne Johansson, Solomon Tessema Memirie, Ingrid Friberg, Julia Driessen, Dean Jamison


Using the extended cost-effectiveness analysis (ECEA) methods, this chapter examines universal public finance (UPF) of the prevention and treatment of pneumonia and diarrhea in Ethiopia, with a focus on children under age five years. The combination of prevention and treatment options illustrates health and financial risk protection (FRP) benefits brought by the different intervention packages available to decision makers. This analysis also examines these benefits by income quintile so that policy makers can better understand how each package affects different segments of the population—a critical element of universal health coverage (UHC). Modeling a 20 percentage point increase in coverage exposes the broad implications for policy makers rather than providing them with definitive estimates. The approach permits the incorporation of FRP in the economic evaluation of health policies and provides policy makers with information on how they might sequence the development of health care packages as health and financial needs of populations evolve and resource envelopes change.