Spectacle dispensing in Timor-Leste: tiered-pricing, cross-subsidization and financial viability

Ophthalmic Epidemiol. 2012 Aug;19(4):231-5. doi: 10.3109/09286586.2012.680528.

Abstract

Purpose: To examine the financial viability of the Timor-Leste National Spectacle Program as it increases spectacle availability, affordability and uptake, particularly for Timor's poor.

Methods: In rural areas, three models of ready-made spectacles were dispensed according to a tiered pricing structure of US$3.00, 1.00, 0.10 and 0.00. In addition, custom-made spectacles were available in the capital, Dili. Spectacle costs, dispensing data and income for the National Spectacle Program for 18 months from March 2007 were analyzed.

Results: Rural services dispensed 3415 readymade spectacles: 47.1% to women, and 51.4% at subsidized prices, being 39.8% at US$0.10 and 11.6% free. A profit of US$1,529 was generated, mainly from the sale of US$3.00 spectacles. Women (odds ratio, OR, 1.3, 95% confidence interval, CI, 1.1-1.4) and consumers aged ≥65 years (OR 2.1; 95% CI 1.7-2.6) were more likely to receive subsidized spectacles. Urban services dispensed 2768 spectacles; mostly US$3.00 readymade (52.8%) and custom-made single vision (29.6%) units. Custom-made spectacles accounted for 36.7% of dispensing, but 73.1% of the US$12,264 urban profit. The combined rural and urban profit covered all rural costs, leaving US$2,200 to meet administration and other urban expenses.

Conclusion: It is instructive and encouraging that a national spectacle dispensing program in one of the ten poorest countries of the world can use tiered-pricing based on willingness-to-pay information to cover spectacle stock replacement costs and produce profit, while using cross-subsidization to provide spectacles to the poor.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Adolescent
  • Adult
  • Aged
  • Child
  • Child, Preschool
  • Eyeglasses / economics*
  • Eyeglasses / supply & distribution*
  • Fees and Charges*
  • Female
  • Financing, Government / economics*
  • Financing, Personal / economics*
  • Health Care Surveys
  • Humans
  • Indonesia / epidemiology
  • Infant
  • Male
  • Middle Aged
  • National Health Programs / organization & administration*
  • Presbyopia / epidemiology
  • Presbyopia / therapy
  • Refractive Errors / epidemiology
  • Refractive Errors / therapy
  • Rural Population / statistics & numerical data
  • Visual Acuity / physiology
  • Young Adult