This paper examines the incidence of public health subsidies in Ghana. Using a
combination of (standard) benefit incidence analysis and a discrete choice model, our
results give a clear evidence of progressivity with consistent ordering: postnatal and
prenatal services are the most progressive, followed by clinic visits, and then hospital
visits. Children health care services are more progressive than adults'. Own price and
income elasticities are higher for public health care than private health care and for adults
than children. Poor households are substantially more price responsive than wealthy ones,
implying that fee increases for public health care will impact negatively on equity in
health care. In addition, raising the price of public health care will result in a massive
decline in the demand for public health care, particularly among the poorest group.
However, doubling public price and reducing travel cost by half led to an increase in the
demand for public health care and a decrease in non-consultation, indicating that, fee
increases should be accompanied by a simultaneous reduction in travel cost, including
travel time.