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Research
Dumsani Mandla Gumede
University of KwaZulu-Natal School of Nursing and Public Health
Corresponding Author
ORCiD: https://orcid.org/0000-0001-8739-6033
License:
This work is licensed under a CC BY 4.0 License. Read Full License
Background: In order to improve health in low- and middle- income countries the basic health infrastructure needs to be upgraded. Part of the problem is the shortage of skilled healthcare professionals (HCP) particularly in rural areas. The Umthombo Youth Development Foundation (UYDF) is a non-profit organisation (NPO) established in 1999 to assist in addressing shortage of HCPs in rural areas. The aim of this study is to measure the success of the UYDF bursary scheme in achieving this goal by calculating the cost of supporting rural students and estimating the benefits in relieving the shortage in terms of the financial return on investment.
Methods: The sources of the data were the UYDF organisational records (finance, human resources and procurement), supplemented by the published and unpublished UYDF reports. The return on investment was estimated through the use of an Internal Rate of Return (IRR) calculation.
Results: The UYDF database of beneficiaries showed that by the year 2017 a total of 337 HCPs had graduated and a further 254 were still studying. An average of R17 million was spent every year on the students or R102 015 per student per year. The IRR was 63% higher than interest rates on commercial loans. These graduates are expected to generate an estimated R15 billion in lifetime earnings, which would be equal to R4 billion at current prices.
Conclusion: The UYDF scheme relieved the shortage of HCPs in rural hospitals, and the hospitals were able to retain the service of many of the locally sourced HCPs. The costs of implementing the bursary scheme were outweighed by the income generated from salaries, and taxes contributed to the country’s economic development.
Keywords
Rural health services; health care professionals; rural hospitals; return on investment; South Africa
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This is a preprint. It has not completed peer review.
Research
Dumsani Mandla Gumede
University of KwaZulu-Natal School of Nursing and Public Health
Corresponding Author
ORCiD: https://orcid.org/0000-0001-8739-6033
Badges
Prescreen
This manuscript passed our Prescreen assessment
Complete author information
Appropriate declaration statements
Potential risks to human health
Prescreen
History
CURRENT STATUS: Posted
Version 2
Posted 04 Jun, 2020
No community comments so far
No comments provided
Metrics
Comments: 0
PDF Downloads: ...
HTML Views: ...
License:
This work is licensed under a CC BY 4.0 License. Read Full License
Background: In order to improve health in low- and middle- income countries the basic health infrastructure needs to be upgraded. Part of the problem is the shortage of skilled healthcare professionals (HCP) particularly in rural areas. The Umthombo Youth Development Foundation (UYDF) is a non-profit organisation (NPO) established in 1999 to assist in addressing shortage of HCPs in rural areas. The aim of this study is to measure the success of the UYDF bursary scheme in achieving this goal by calculating the cost of supporting rural students and estimating the benefits in relieving the shortage in terms of the financial return on investment.
Methods: The sources of the data were the UYDF organisational records (finance, human resources and procurement), supplemented by the published and unpublished UYDF reports. The return on investment was estimated through the use of an Internal Rate of Return (IRR) calculation.
Results: The UYDF database of beneficiaries showed that by the year 2017 a total of 337 HCPs had graduated and a further 254 were still studying. An average of R17 million was spent every year on the students or R102 015 per student per year. The IRR was 63% higher than interest rates on commercial loans. These graduates are expected to generate an estimated R15 billion in lifetime earnings, which would be equal to R4 billion at current prices.
Conclusion: The UYDF scheme relieved the shortage of HCPs in rural hospitals, and the hospitals were able to retain the service of many of the locally sourced HCPs. The costs of implementing the bursary scheme were outweighed by the income generated from salaries, and taxes contributed to the country’s economic development.
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
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