Cost Analysis of Oral Healthcare Delivery at a Primary Health Center in South India

Background: India faces alarming oral disease rates. Kerala, despite good health indicators, lacks primary dental facilities, leading to high out-of-pocket costs for patients. Addressing spending inefficiencies through cost-reduction strategies is essential. Objectives: To study the “cost” of establishing and operating a dental clinic in primary health centers (PHCs) and to model scenarios for sustainability. Materials and Methods: This cost analysis from a healthcare provider perspective was conducted at a dental unit at a PHC in Kottayam. Data were collected using a bottom-up costing approach from the official records and key informants. Results: The establishment cost was ₹1,682,415 (~20,029 United States Dollars [USD]). After accounting for ₹10,800 (~129 USD) income, the net monthly operating cost was ₹88,131.77 (~1,049 USD). The significant disparity limits efficiency, necessitating increased treatment charges and volume to enhance self-sustainability. Conclusion: Restructuring the existing system and optimizing expenditures are essential to address under-recovery and ensure financial sustainability.