The accessibility of credit loans from financial institutions by private healthcare facilities in Tanzania

Abstract

ABSTRACT Background: Private healthcare facilities were established to supplement government efforts in strengthening the delivery of quality health services and enhancing health outcomes. In developing countries, the growth of private healthcare facilities is hindered by limited access to finance, with little to no capital available. Despite the presence of financial institutions that could provide loans to private facilities, there is currently limited evidence on the factors that facilitate or impede access to these credit loans. Objective of the study: To assess the factors affecting the accessibility of credit loans from the financial institutions by the private health facilities in Tanzania. Methods and Materials: This study employed an exploratory qualitative design to address the research objectives. Key informant interviews were conducted among respondents from the financial institutions and the private health facilities. The study was conducted in Dar es Salaam region across the financial and private health facilities located in all the five districts. The interviews conducted were as well complimented with a document review. A thematic analysis method was used to analyze the qualitative data using NVIVAL software. Results: Private healthcare facilities have marginal access to credit loans from financial institutions, influenced by both supply-side and demand-side factors. The documentary review revealed that a small proportion of private healthcare facilities obtain credit loans, while capital equipment and the expansion of services/business are the most frequently sought loan purposes. Additional factors hindering access to loans were also identified. Conclusion and recommendation: The study findings indicate that the ability of private healthcare facilities to obtain credit loans depends on both supply and demand-side factors. There is lack of awareness and understanding of where the private health facilities should obtain loans as well as the conditions for borrowing. Therefore, awareness campaigns and entrepreneurship training programs focusing on financing support has to be conducted among the establish credit loans with terms and conditions that meet the requirements of private healthcare facilities, and encourage expertise in the health sector.