Resource Library

The Impact of a Microfinance Program on Private Health Care Providers in Uganda

This evaluation assesses the impact of the Summa Foundation's microfinance program on the viability of small-scale private health care practices in Uganda. Summa's microfinance program began disbursing loans in January of 2001 in Uganda. The program has had three main objectives; increasing practice viability; improving services; and expanding services. By examining loan impact on client perception of quality of care in recipient practices, this study indirectly assesses the role of perceived quality in improving client flow through increased client loyalty and new-client recruitment. The evaluation found that the program achieved its goal of improving practice viability, largely through increased utilization and enhanced drug sales that have resulted from more consistent drug availability. Perceived quality at followup improved for loan recipients' practices. Despite these improvements in perceived quality, the changes have translated into mixed results for client loyalty. In addition to improvements in perceived quality and utilization, the assessment shows that the program appears to strengthen revenue, contributing significantly to loan clinic viability. In general, the assessment results suggest that the microfinance program has improved the financial viability of loan-recipient providers. The results also suggest that the intervention may have contributed to improved public health outcomes. Strengthening the viability of small private sector providers provides a safety net for the provision of reproductive health services if public-sector provision is threatened in the future.