Abstract:
BACKGROUND: Over the past decade there is a trend of fast development in the private hospital sector
in Ethiopia. This important component of the health care system has received policy attention and
federal government is a promoter for private health care. Yet lack of basic data on the factors affecting
the growth of private health care provision in the country and no studies are available on this issue in
Ethiopia. The aim of this study is to get some preliminary insights on the factors affecting the growth
and development of private hospital sector in Addis Ababa, Ethiopia with perspective of provider.
METHODS: A hospital based qualitative study was conducted in 25 for-profit hospitals in Addis Ababa
using key informant in-depth interviews and secondary data was collected from Federal Ministry of
Health and Addis Ababa City Health Administration and private hospital providers.
RESULTS: The findings of the study suggest that private hospital sector is expanding significantly in
recent years in Ethiopia. The active role of government is a catalyst for the growth of private facilities in
the country. Factors outside the health are growing disposable income, improvements in literacy, road
networks, population growth and long standing diseases, all contribute to the trend. But private
providers are facing many problems, like availability of trained manpower, escalation of costs,
availability and quality of drugs and financing mechanisms.
CONCLUSION: Private hospital sector is expanding in Ethiopia. But private providers are vulnerable
to imperfections in the existing market structure. Government and professional bodies need to make a
concerted effort to address these issues and design appropriate strategies to promote and regulate this
sector effectively.
