Methodological Assessment and Cost-Effectiveness Analysis of District Hospitals in Kenya: A Panel Data Approach

This study examines district hospitals in Kenya by assessing their methodological strengths and weaknesses, with a focus on cost-effectiveness analysis. A panel-data approach was employed, utilising a fixed effects model to account for hospital-specific characteristics that may influence costs and outcomes. Robust standard errors were applied to ensure the reliability of the estimated coefficients. The analysis revealed that district hospitals in Kenya have an average cost-effectiveness ratio of $200 per patient treated, with significant variability among different regions. Our study concludes that while some districts show promising efficiency, there is a need for targeted interventions to improve overall service delivery and reduce costs. Specific recommendations include increasing funding in underserved areas, training healthcare staff, and implementing standardised protocols to enhance the quality of care offered by district hospitals. Treatment effect was estimated with $\text{logit}(p_i)=\beta_0+\beta^\top X_i$, and uncertainty reported using confidence-interval based inference.