Journal Design Clinical Emerald
African Food Systems Research (Interdisciplinary - incl Agri/Env) | 07 January 2017

Cost-Effectiveness of Community Health Centres in Rwanda

A Methodological Evaluation Using a Difference-in-Differences Model
J, e, a, n, d, e, D, i, e, u, U, w, i, m, a, n, a, ,, M, a, r, i, e, C, l, a, i, r, e, M, u, k, a, m, a, n, a
Quasi-experimental designHealth economicsMethodologySub-Saharan Africa
Difference-in-differences model applied to cost-effectiveness analysis in Rwanda.
Methodological blueprint for quasi-experimental evaluation of health programmes.
Critical importance of parallel trends assumption and granular cost data.
22% decrease in average cost per delivery with robust confidence intervals.

Abstract

{ "background": "Evaluating the cost-effectiveness of community-based health interventions in low-resource settings is methodologically challenging, requiring robust quasi-experimental designs to establish causal inference.", "purpose and objectives": "This case study aims to methodologically evaluate the application of a difference-in-differences (DiD) model for assessing the cost-effectiveness of a national community health centres programme, focusing on maternal and child health outcomes.", "methodology": "We employ a retrospective DiD design using panel data from administrative health and financial records. The core model is specified as $Y{it} = \\beta0 + \\beta1 \\text{Treat}i + \\beta2 \\text{Post}t + \\delta (\\text{Treat}i \\times \\text{Post}t) + \\epsilon_{it}$, where $\\delta$ is the average treatment effect on the treated. Inference is based on cluster-robust standard errors at the district level.", "findings": "The methodological application revealed that the DiD estimator identified a statistically significant reduction in the cost per facility-based delivery attributable to the programme. A key finding was a 22% decrease in average cost, with a 95% confidence interval of 15% to 29%. The analysis highlighted critical assumptions, particularly parallel trends, and the importance of granular cost-tracking for accurate estimation.", "conclusion": "The DiD model provides a viable and rigorous framework for cost-effectiveness analysis in this context, though its validity depends heavily on the plausibility of its identifying assumptions and data quality.", "recommendations": "Future evaluations should incorporate pre-intervention period checks for parallel trends and integrate activity-based costing from the outset to strengthen causal claims about cost-effectiveness.", "key words": "cost-effectiveness analysis, difference-in-differences, quasi-experimental design, community health, maternal health, health economics", "contribution statement": "This study provides a novel methodological blueprint for applying DiD to cost-effectiveness evaluations of complex public health