An innovative strategy to address shortages of healthcare personnel

Abstract

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data were the UYDF organisational records (finance, human resources and procurement), supplemented by the published and unpublished UYDF reports.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.