In 1988 a study of the costs of rural health services was carried out in Papua New Guinea. The study collected data from a 16% sample of all health centers and subcenters and was able to determine average staffing patterns, total and average costs, and service levels for different types of facilities. The study methodology and findings have been found to have broad application for both planning and management of health services. The applications of cost analysis for planning and management of health services are discussed, and key recommendations are outlined for improving the efficiency and productivity of rural health facilities in Papua New Guinea.
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