Full Project – EVALUATION OF THE IMPACT OF DRUG REVOLVING FUND IN ONDO STATE

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CHAPTER ONE

INTRODUCTION

• Background to the Study

The Drug Revolving Fund (DRF) is a financial mechanism used in healthcare systems to ensure the availability and accessibility of essential drugs. The Drug Revolving Fund (DRF) has been a significant initiative in Ondo State, Nigeria, aimed at improving the availability and affordability of essential medicines. The DRF model, which involves the reinvestment of drug sales revenue into restocking drugs, has been implemented in many developing countries to address the issue of drug shortages (Uzochukwu et al., 2014). In Ondo State, the DRF has been instrumental in ensuring a consistent supply of drugs, thereby improving the overall healthcare delivery system.

The impact of the DRF in Ondo State has been evaluated in terms of its effect on drug availability and affordability. A study by Ogunleye et al. (2018) found that the DRF significantly improved the availability of essential drugs in public health facilities. The study also noted that the DRF led to a reduction in the prices of drugs, making them more affordable for the general population. This is a crucial achievement, given that high drug prices are a significant barrier to healthcare access in many developing countries. Healthcare providers may increase patient access to life-saving medications via drug revolving funds (DRFs). In order to avoid shortages or stockouts in public health institutions like hospitals and health centres, a DRF’s principal objective is to guarantee a consistent supply of high-quality pharmaceuticals.

However, the DRF has also faced challenges in Ondo State. A study by Aregbeshola (2017) highlighted issues such as inadequate funding, poor management, and lack of accountability as major obstacles to the effective implementation of the DRF. These challenges have sometimes led to stock-outs of essential drugs, undermining the potential benefits of the DRF.

Despite these challenges, the DRF has had a positive impact on the healthcare system in Ondo State. It has contributed to improved health outcomes by ensuring the availability and affordability of essential drugs. For instance, a study by Akande-Sholabi and Adebisi (2023) found that the DRF led to a significant reduction in the mortality rate from malaria, a major public health issue in Ondo State.

However, for the DRF to achieve its full potential in Ondo State, the identified challenges need to be addressed. This could involve increasing funding for the DRF, improving management practices, and enhancing accountability mechanisms. Further research is also needed to evaluate the long-term impact of the DRF on health outcomes in Ondo State.

The DRF has had a significant impact on the healthcare system in Ondo State, improving drug availability and affordability. However, challenges remain, and further efforts are needed to maximize the benefits of the DRF. Future research should focus on evaluating the long-term impact of the DRF and identifying strategies to address the identified challenges.

• Statement of the Problem

The problem of inadequate access to essential medicines is a significant issue in Ondo State, Nigeria. The Drug Revolving Fund (DRF) was established to address this problem by ensuring a consistent supply of affordable and quality medicines. However, the effectiveness and impact of the DRF in Ondo State have not been thoroughly evaluated (Uzochukwu et al., 2015).

The DRF’s primary objective is to improve the availability and affordability of essential drugs, but there are concerns about its implementation and sustainability. There is a lack of comprehensive data on the DRF’s impact on the health outcomes of the people in Ondo State. This lack of data makes it difficult to assess the DRF’s effectiveness and to make necessary improvements (Onwujekwe et al., 2011).

Furthermore, there are concerns about the financial sustainability of the DRF. While the fund is designed to be self-sustaining, there are reports of frequent stock-outs of essential drugs, suggesting that the fund may not be as financially stable as intended (Uzochukwu et al., 2015).

Additionally, there are issues related to the management and governance of the DRF. There are reports of mismanagement and corruption, which could undermine the effectiveness of the DRF. There is a need for more transparency and accountability in the management of the DRF (Onwujekwe et al., 2011).

Moreover, the DRF’s impact on the health outcomes of the people in Ondo State is unclear. While the DRF is intended to improve access to essential medicines, it is not clear whether this has translated into improved health outcomes. There is a need for more research to evaluate the DRF’s impact on health outcomes (Uzochukwu et al., 2015).

Again, while the DRF has the potential to significantly improve access to essential medicines in Ondo State, there are several issues that need to be addressed. These include the lack of data on the DRF’s impact, concerns about its financial sustainability, issues related to its management and governance, and the unclear impact on health outcomes. Further research is needed to evaluate the DRF’s effectiveness and to make necessary improvements (Onwujekwe et al., 2011; Uzochukwu et al., 2015).

1.3  Aim and Objectives of the Study

The aim of the study is to evaluate of the impact of drug revolving fund in Ondo State. The specific objectives are:

1. To assess the effectiveness of the Drug Revolving Fund (DRF) in improving the availability and accessibility of essential medicines in Ondo State.
2. To evaluate the impact of the DRF on the affordability of drugs for the residents of Ondo State.
3. To investigate the influence of the DRF on the quality of healthcare services provided in Ondo State.
4. To determine the level of awareness and understanding of the DRF among the residents of Ondo State.
5. To identify potential areas of improvement in the implementation and management of the DRF in Ondo State.

• Research Questions

The research questions are stated below:

1. How effective has the Drug Revolving Fund (DRF) been in improving the availability and accessibility of essential medicines in Ondo State?
2. What has been the impact of the DRF on the affordability of drugs for the residents of Ondo State?
3. In what ways has the DRF influenced the quality of healthcare services provided in Ondo State?
4. What is the level of awareness and understanding of the DRF among the residents of Ondo State?
5. What are the potential areas of improvement in the implementation and management of the DRF in Ondo State?

• Research Hypothesis

The hypothetical statement for the study are buttressed below:

H_O: Drug Revolving Fund (DRF) is not effective in improving the availability and accessibility of essential medicines in Ondo State.

H₁: Drug Revolving Fund (DRF) is effective in improving the availability and accessibility of essential medicines in Ondo State.

1.6. Significance of the Study

The significance of the study on the evaluation of the impact of the drug revolving fund in Ondo State is multi-faceted and far-reaching. Firstly, it provides an in-depth understanding of the effectiveness of the drug revolving fund (DRF) scheme in improving the availability and affordability of essential medicines in Ondo State. The DRF is a critical component of the health system, aimed at ensuring a sustainable supply of drugs, particularly in low-income regions. By evaluating its impact, the study can provide valuable insights into the scheme’s success or areas that need improvement.

The study can serve as a benchmark for other states or regions considering implementing a similar scheme. By examining the impact of the DRF in Ondo State, other regions can gain insights into potential challenges, benefits, and strategies for successful implementation. This can help to avoid potential pitfalls and ensure the most effective use of resources.

The study can contribute to the broader body of knowledge on health financing in developing countries. The DRF is one of many strategies used to improve access to essential medicines, and understanding its impact can provide valuable insights for policymakers, researchers, and practitioners in the field. This can help to inform future policy decisions and research directions.

The study can help to identify potential inequities in access to essential medicines. By evaluating the impact of the DRF, the study can shed light on whether the scheme is reaching those most in need, or whether certain groups are being left behind. This can help to inform strategies to ensure equitable access to medicines.

The study can provide valuable insights into the sustainability of the DRF. By evaluating its impact, the study can help to determine whether the scheme is financially sustainable in the long term, or whether additional funding or strategies are needed. This is crucial for ensuring the continued availability of essential medicines.

Lastly, the study can help to inform the development of strategies to improve the quality of care. By evaluating the impact of the DRF, the study can provide insights into how the availability and affordability of medicines affect the quality of care provided. This can help to inform strategies to improve care, such as training for health workers, improvements in supply chain management, or changes in prescribing practices.

1.7 Scope of the Study

The study examines the “evaluation of the impact of Drug Revolving Fund (DRF) in Ondo State. A study of Ondo State residents and Ministry of Health.

1.8. Operational Definition of Terms

Evaluation: Evaluation refers to the systematic process of assessing or examining something to determine its value, worth, or effectiveness. It involves gathering and analyzing data to make informed judgments or decisions.

Impact: Impact refers to the effect or influence that something has on a particular situation, system, or individual. It can be positive or negative and can vary in magnitude.

Drug Revolving Fund (DRF): The Drug Revolving Fund (DRF) is a financial mechanism used in healthcare systems to ensure the availability and accessibility of essential drugs. It is a system where funds are allocated to purchase drugs, and the revenue generated from the sale of these drugs is reinvested to replenish the fund and sustain the supply of medications.

Drugs availability: Drugs availability refers to the presence or accessibility of pharmaceutical products in a given healthcare system or setting. It involves ensuring that essential drugs are consistently stocked and accessible to meet the needs of patients.

Drugs accessibility: Drugs accessibility refers to the ease with which individuals can obtain or obtain pharmaceutical products. It encompasses factors such as affordability, geographical proximity, and the absence of barriers that may hinder individuals from accessing the medications they need.

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Full Project – EVALUATION OF THE IMPACT OF DRUG REVOLVING FUND IN ONDO STATE