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Effective analysis of hospital performance requires the existence of accurate cost and output data. However, these are missing ingredients in most developing countries due to lack of information systems or other sources of data. Typically, expenditures are substituted for actual costs in analyzing hospital finance. This paper presents a methodology and analysis of the actual costs of inpatient, emergency, and outpatient services in a Dominican hospital. Through applying a set of survey instruments to a large sample of patients, the study measures and costs all hospital staff time, in-kind goods (drugs, medical supplies, reagents, etc.), overhead, and the depreciated value of plant and equipment related to the treatment of each patient. The results are striking. The budget is over 50% higher than the actual costs of services, reflecting the high cost of waste, down time, and low productivity. For example, high fixed costs translate into immunizations that on the average cost over 20% more than outpatient surgical interventions. The most disturbing finding is that although physicians represent the bulk of personnel spending, the surveys could account for only 12% of the contracted time of staff physicians, including time dedicated to treatment, supervision, administration, and teaching. As a proportion of the hospital total budget, personnel spending represents a high 84%. Yet staff costs for patient treatment never exceed 12%. These results suggest gross inefficiency, chaotic medical care organization, and poor hospital management.

Since the late 1970s the WHO and other international agencies have placed much emphasis on strategies of community organization in order to improve preventive health services and facilities in rural areas. Many countries have recently set out to reform their rural health systems by means of a community-based approach. Panama's 15 years of experience in 'community health' provide insight into the constraints to program continuity at the national level and to maintenance of participatory mechanisms (health committees) at the village level. This paper focuses on the present status of the Community Health Program and level of activity of the health committees. This study is based on in-depth interviewing of key program participants at three contexts: central ministry, district/regional health institutions and rural communities. It sought to discover how interactions among and within these contexts affected program services and community participation. Inconsistent outcomes are evident. In some areas the Community Health Program thrives and the health committees are active, while in most areas the program functions at a minimal level and most health committees are inactive. Several factors are identified which affect a 'successful' or 'unsuccessful' program environment. These include: degree of support from medical directors of district and regional health centers, existence of 'federations of health committees', the extent of political interference, the presence of a functional 'technical health team' and degree of community confidence in health committee officers.