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Health Policy and Planning Advance Access published March 14, 2014

This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0/), which permits
unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited. Health Policy and Planning 2014;1–9
Published by Oxford University Press in association with The London School of Hygiene and Tropical Medicine doi:10.1093/heapol/czu013

REVIEW

Price subsidies increase the use of private


sector ACTs: evidence from a systematic review
Alexandra Morris,1* Abigail Ward,1 Bruno Moonen,1 Oliver Sabot2 and Justin M. Cohen1
1
Clinton Health Access Initiative, 383 Dorchester Avenue, Suite 400, Boston, MA, USA and 2Slingshot, 67 Riverside Dr. Nairobi Kenya 00100
London, UK
*Corresponding author. Clinton Health Access Initiative, 383 Dorchester Avenue, Suite 400, Boston, MA 02127, USA.
E-mail: alix.morris@gmail.com

Accepted 4 February 2014

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Background Although artemisinin combination therapies (ACTs) are the recommended first-
line treatment for uncomplicated malaria in most endemic countries, they have
been prohibitively expensive in the retail sector where many suspected malaria
cases purchase treatment. ACT subsidies seek to stimulate consumer demand for
the drugs over cheaper but often ineffective alternatives by reducing their prices.
Recent evidence from eight regions implementing such subsidies suggests that
they are generally successful in improving availability of the drugs and
decreasing their retail prices, but it remains unclear whether these outcomes
translate to improved use by patients with suspected malaria.

Methods
and findings A systematic literature review was conducted to identify reports of experimental
or programmatic ACT subsidies to assess the impact of subsidies on consumer
use. Relationships between price, use and potential confounding factors were
examined using logistic and repeated measures binomial regression models, and
approximate magnitudes of associations were assessed with linear regression. In
total, 40 studies, 14 peer-reviewed and 26 non-peer-reviewed, were eligible for
inclusion in the analysis. The reviewed studies found a substantial increase in
private sector ACT use following the introduction of a subsidy. Overall, each $1
decrease in price was linked to a 24 percentage point increase in the fraction of
suspected malaria cases purchasing ACTs (R2 ¼ 0.302). No significant differences
were evident in this relationship when comparing the poorest and richest groups,
rural vs urban populations or children vs adults.

Conclusions These findings suggest that ACT price reductions can increase their use for
suspected malaria, even within poorer, more remote populations that may be
most at risk of malaria mortality. Whether a subsidy is appropriate will depend
upon local context, including treatment-seeking behaviours and malaria preva-
lence. This review provides an initial foundation for policymakers to make
evidence-based decisions regarding ACT price reductions to increase use of
potentially life-saving drugs.
Keywords Subsidy, artemisinin combination therapies, malaria, systematic review

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KEY MESSAGES
 Subsidies increased private sector ACT usage by children under the age of five in all of the studies identified, from
7 percentage points in Nigeria to 49 percentage points in Uganda (both at national scale).

 On average, a 1 dollar reduction in the price of ACTs was associated with a 24 percentage point increase in ACT usage
among those of any age, and a 32 percentage point increase among children under five.

 The observed increases in ACT use in the private sector following subsidization appear equitable; subsidies substantially
increased ACT use even among the poorest individuals studied, and no significant differences were apparent in ACT use
increases between those living in rural vs urban areas.

Introduction Instead, the evaluation considered existing household surveys


available through Demographic Health Surveys (DHS) and
Increasing the use of artemisinin combination therapies (ACTs),
other sources, including surveys conducted by ACTwatch Group
the recommended first-line treatment for uncomplicated mal-
of Population Services International (ICF Macro and LSHTM
aria in most endemic countries, is a central pillar of the global
2012). The report on ACT use concluded that three of the five
effort to reduce malaria mortality (WHO 2010). Over the past
countries with available evidence demonstrated at least a five

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8 years, substantial international donor investment has focused
on making ACTs widely available in the public sector in many percentage point increase in ACT use pre- and post-subsidy
countries in sub-Saharan Africa. However, ACT use is greatly introduction.
limited by the medicine’s high cost in the private sector, where This investigation seeks to provide additional evidence on
roughly half of malaria patients in sub-Saharan Africa, and an how ACT use changes when prices are subsidized, drawing
even higher proportion in Southeast Asia, purchase treatment on additional data from operational research measuring the
(WHO 2011). In recent years, ACTs have been found to be more impact of the AMFm, as well as from prior experimental and
than 10 times more expensive than common but potentially programmatic subsidies. A comprehensive review of ACT use
ineffective anti-malarials such as chloroquine and sulphadoxine data in all areas where an ACT subsidy has been introduced
pyrimethamine (White 2008). As a result, many patients who and evaluated was conducted, and these data were used to
obtain treatment in the private sector continue to use sub- assess the empirical relationship between ACT use and the
optimal medicines. proximal factors of ACT affordability and availability. This
To address this financial barrier and increase access to additional evidence can inform policymakers and funders on if
affordable ACTs, several countries have introduced programmes and how interventions to reduce the price of ACTs can enable
to subsidize the price of ACTs in the private sector. Most malaria endemic countries to reach the Roll Back Malaria
recently, in 2009, the Global Fund to Fight AIDS, Tuberculosis Partnership goals of achieving universal access in the private
and Malaria (the Global Fund) launched the Affordable sector (RBM 2011).
Medicines Facility—malaria (AMFm), an international finan-
cing mechanism piloted in eight territories—such as Nigeria,
Niger, Madagascar, Uganda, Ghana, Kenya, Tanzania and
Zanzibar. The initial phase of the AMFm was comprised of Methods
three elements: (1) price reductions through negotiations with
Literature review
ACT manufacturers, (2) a buyer subsidy offered through a co-
payment at the manufacturer level of the supply chain and (3) A systematic literature review was conducted to identify studies
supporting interventions to promote appropriate use of ACTs. that examined subsidies for artemisinin-based drugs in the
The AMFm provided a roughly 90% co-payment for ACTs private sector according to PRISMA reporting protocol guide-
ordered by both public and private sector buyers in an effort to lines (Liberati et al. 2009). The private sector was defined as
reduce the price to consumers. private healthcare facilities, pharmacies and over-the-counter or
A policy review published in 2011 suggested ACT subsidies retail shops. PubMed/Medline and EMBASE were searched in
were successful in improving availability of the drugs and May 2013 for the key words ‘subsidy’ (or ‘subsidi*’) and a
decreasing their retail prices (Schäferhoff and Yamey 2011). MESH heading for ‘malaria’. Non-peer-reviewed evaluations
However, little data were available on whether these inter- were identified through targeted outreach to investigators of
mediary outcomes translated to an improvement in the fraction relevant articles and key institutions. Studies were included if
of suspected or confirmed malaria patients who actually they met the following eligibility criteria: (1) the study assessed
received an ACT. Following the launch of the AMFm, an a financial subsidy in the private sector for an ACT between
independent evaluation was commissioned to assess changes in 1990 and May 2013, (2) study participants were anti-malarial
ACT price, availability, market share and use (Arnold et al. drug customers or users and (3) the study measured whether or
2012). An extensive analysis was conducted to measure the not a suspected malaria case received or an anti-malarial
changes in these outcomes at national scale across the pilot customer purchased an ACT. Studies were excluded if no ACT
countries before and after the AMFm intervention. Due to cost subsidy intervention was introduced, the subsidy was imple-
and complexity, however, the Global Fund decided to not mented only in the public sector or if there was no attempt to
conduct measurement of ACT use as part of that evaluation. measure ACT use as part of the assessment.
SUBSIDIES INCREASE ACT USE: A SYSTEMATIC REVIEW 3

All ACT subsidies described in the reviewed literature were implementation of Global Fund grants and other interventions
categorized as either corresponding to (1) the AMFm, (2) an (WHO 2011). However, no known private sector interventions
experimental subsidy or (3) a non-AMFm, non-experimental at national scale were implemented during this period other
programmatic subsidy, typically implemented by the govern- than the subsidies under consideration.
ment or an non-governmental organizations. These categories Where possible, trends were examined within specific sub-
were selected to examine the effect of the AMFm specifically, to groups of interest, including children under five, those of lowest
observe rigorously measured impact of subsidization in research socioeconomic status (SES) and those living in rural areas. SES
studies that compared changes against controls and to review was measured by comparing the highest and lowest wealth
evidence on the impact of prior programmatic subsidies. Any index quintiles, generated from principal components analysis of
information provided on anti-malarial use or purchasing assets by ACTwatch using demographic and health survey
behaviour, patient characteristics and ACT stocking and pricing methodology. Rurality was considered as a dichotomous rural/
in retail outlets or health facilities was recorded. The ACT urban variable defined separately by each study. Differences in
stocking and pricing data were used to look for associations use and increases in use during subsidies between high- and
between these measures and use rates. low-SES groups and those in urban and rural locations were
ACT use has been defined as both (1) the proportion of compared statistically using logistic regression models.
patients with fevers (or suspected malaria illness) who receive In a second set of analyses, all studies reporting not only use
an ACT (Kangwana et al. 2011) and (2) the proportion of anti- but also stocking of ACTs and sales prices were compiled to
malarial recipients who receive an ACT (Talisuna et al. 2012). specifically examine the linkage between commonly measured

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The second definition is more appropriate for contexts where indicators at the retail level and the important but less
anti-malarial use rates may be changing as a result of factors commonly evaluated impact on use. The relationship between
unrelated to the drug subsidy and may also be more appropri- the proportion of outlets stocking ACTs and the average price of
ate for evaluating the impact of subsidies given that their stated ACTs at those outlets was explored using repeated measures
goal is typically to replace ineffective alternative treatment with logistic regression models with the GENMOD procedure in SAS
ACTs rather than to increase the use of anti-malarials in v9.2. The outcome of this model was whether or not an outlet
general (Institute of Medicine 2004). If, however, a subsidy stocked ACTs. Separate models were run for ACTs for children
does cause changes in the overall envelope of anti-malarial under five and ACTs for any age. The predictor variable for
use, this change would not be captured by the second metric. these models was the average price of ACTs for children under
The second narrower definition is primarily used here, although five and for any age, respectively. An exchangeable covariance
the first is also presented when it is the only metric provided by structure was specified in each model to account for within-
the reviewed sources. survey correlation. Because the resulting odds ratios (ORs) from
Two principal methods to measure the fraction of anti- these models are difficult to interpret (Davies et al. 1998),
malarial users who take ACTs are used in the literature. The ordinary least squares regression models were also fit to the
first involves surveys of the community at the household level. same data, regressing the fraction of outlets stocking ACTs on
This approach is useful because it allows understanding of ACT the mean ACT price. The resulting linear fit provided a readily
use from any source, whether public or private, and it allows interpretable estimate of the average magnitude of the rela-
population-representative measures to be estimated. However, tionship between the two variables. The same approach was
these household surveys are subject to recall biases (Boerma then used to examine the relationships between the stocking of
et al. 1991), and as drug choice is not directly observed, ACT use ACTs, ACT price and the proportion of anti-malarial customers
rates may not be represented accurately. The second approach choosing to purchase them.
involves interviewing customers as they leave drug-dispensing
outlets. These ‘exit interviews’ are typically conducted only on a
few days outside a select set of outlets, and may or may not be
truly representative of the entire region. Since each of these Results
approaches has advantages and limitations in providing a
The literature search yielded 370 published, peer-reviewed
robust measurement of the target indicator, both are reviewed
studies. A total of 206 appeared relevant and were screened
here; clear differentiation is made between the two throughout
by abstract review, of which 97 studies were then selected for
this review so that the results can be evaluated accordingly.
full-text review. In addition to the studies identified through
the database search, 36 studies were included that were
Data analysis identified through non-peer-reviewed literature or targeted
Evidence for the impact of subsidies on use was reviewed for outreach to investigators. In total, 40 studies were eligible for
each of the three categories of subsidy. Most studies reported inclusion in the analysis and qualitative synthesis. Of these,
the results of cross-sectional surveys conducted at time points 14 were peer-reviewed publications, and 26 were non-peer-
before, during and/or after subsidy implementation, permitting reviewed literature (Figure 1). These reports described 10
examination of how ACT use changed over time. Experimental experimental subsidies in eight countries, non-AMFm program-
subsidies additionally provided measurements of use in control matic subsidies in nine countries and AMFm subsidies in eight
groups, allowing attribution of impact to the subsidy specific- pilots. However, only four experimental subsidies, three pro-
ally. These trends were examined both overall and, where grammatic subsidies and five of the eight AMFm pilot subsidies
possible, specifically in the private sector. In the public sector, measured ACT use and were therefore included in the quan-
ACT scale up has occurred in many countries through titative analysis (Supplementary Table S1).
4 HEALTH POLICY AND PLANNING

through database
screening (n=370)
PubMed (n=134)
sources (n=36)
EMBASE (n=215)
Cochrane (n=21)

168 duplicate records


(n=238)

32 records excluded based on

Commentary, proceeding, clinical


Screening

Records screened based on abstract review if:

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an ACT or;

or ACT usage rate

46 full-text records from database 11 records from other sources


search excluded because: excluded because:
Eligibility

Full-text records assessed for


eligibility (n=97) No full text available (n=2)
Review with no original data measured/presented (n=5)
(n=10)
ACT usage not measured or pre- study (n=2)
sented (n=20) Data in a published paper (n=2)
Public sector only (n=2)
(n=1)
Refers to another study (n=3)
Randomized ACT user groups (n=2)
Public sector only (n=6)
Pre-ACT (n=1)

40 records included in
Included

14 records included 26 records included

synthesis from database synthesis from other


search (12 studies) sources (28 studies)

Figure 1 Literature flowchart of ACT subsidies measuring use.

Experimental subsidies Non-AMFm programmatic subsidies


Four studies included data on ACT use after subsidization in Nine programmatic subsidies implemented prior to the AMFm
experimental groups compared with unsubsidized controls were identified; however, only three subsidies included data on
(Figure 2). Two of these experiments compared household ACT use. In Cambodia, access to subsidized ACTs was scaled up
survey responses regarding the fraction of febrile episodes at private retail outlets in 2002. Before the national scale up,
treated with ACTs (Figure 2A) (Kangwana et al. 2011; Cohen household survey results indicated that only 8% of anti-malarial
et al. 2012a,b), while the other two compared the fraction of recipients received ACTs (Yeung et al. 2011); surveys unrelated
anti-malarial purchasers receiving ACTs vs other anti-malarials specifically to the subsidy found 13% receiving ACTs in 2006
(Figure 2B) (Sabot et al. 2009a,b; Cohen et al. 2010; Talisuna (PSI 2006), 65% in 2009 (ACTwatch Group, Population Services
et al. 2012). All four studies found the fractions reporting International 2009) and 68% in 2011 (ACTwatch Group and
receiving or purchasing ACTs were significantly higher when Population Services International 2011). In 2007 and 2008, the
subsidies were implemented. Tanzanian government expanded access to subsidized ACTs
SUBSIDIES INCREASE ACT USE: A SYSTEMATIC REVIEW 5

A B

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Figure 2 Summary of experimental studies with controlled use data. The fraction of suspected malaria patients receiving ACTs over time in the
subsidized and non-subsidized study groups are shown according to (A) household surveys of all febrile household members in the rural districts of
Busia, Mumias and Samia Kenya (dashed), and febrile children under five in rural Busia, Butere-Mumias and Teso Districts, Kenya (solid). (B) Exit
interviews with anti-malarial purchasers for children under five in three districts of Tanzania (dashed) and five districts of Uganda (solid). Studies
in (A) represent the combined private and public sectors (B) received them in private outlets only.

through private but accredited drug dispensing outlets. Under Relationships between ACT use, stocking and price
the subsidy, use of ACTs in the private sector increased from 0% Figure 5 depicts all reviewed reports that presented data on
of anti-malarial drugs purchased for children under five to 10% both the fraction of private sector outlets found to be stocking
almost a year after subsidy implementation (Simba and Kakoko ACTs and the price of the ACTs in those locations at proximal
2012). In Kenya, a subsidy was launched in 2007 to make ACTs time periods. Accounting for correlation between outlets
available to Community and Family Wellness shops in three measured in the same survey, the price of ACTs for any age
rural districts. In 2006, household surveys found that 15% of group was negatively but not significantly associated with ACT
patients receiving anti-malarials in either the private shops or stocking (OR ¼ 0.870, Z ¼ 1.66, P ¼ 0.098). However, each $1
public health facilities received ACTs. After 15 months of the increase in the price of a paediatric ACT was associated with an
intervention, this fraction increased to 42%, with 9% of those OR for stocking of 0.223 (Z ¼ 2.62, P ¼ 0.009). Ignoring
receiving ACTs obtaining them from the subsidized shops correlation, linear regression output suggests that this $1
(Sabot et al. 2009a,b). increase in price is associated with a 3.49% decrease in the
fraction of outlets stocking any ACT (R2 ¼ 0.051), and a 23.5%
decrease in the fraction of outlets stocking a paediatric ACT
The AMFm specifically (R2 ¼ 0.532).
The ACTwatch Group collected comparable data on ACT use in In Figure 6, all reviewed studies are depicted that recorded
Madagascar, Nigeria and Uganda, with surveys conducted data on both ACT stocking in the private sector and their use in
1–2 years before implementation of the subsidy and again the same regions at proximal time periods. A repeated measures
after almost 2 years of subsidization in Nigeria and Madagascar regression model suggests that, on average, each 10% increase
and 1 year in Uganda (Figure 3) (ACTwatch Group and in stocking is associated with an OR for ACT use of 1.27
ABMS/Benin et al. 2012). In addition, reports were identified (Z ¼ 3.82, P < 0.001) among all ages. For children, the OR is
reporting ACT use in Ghana, Tanzania, Uganda and Madagascar 1.46 (Z ¼ 3.63, P < 0.001). Ignoring correlation between meas-
following implementation of the AMFm (Quakyi et al. 2012; urements from the same surveys, this 10% increase in stocking
P. Yadav et al., unpublished data). All reports described is associated with a 5% increase in the fraction using ACTs
increases in ACT use after implementation of the subsidy. At (R2 ¼ 0.363) among all ages, and an 8% increase in the fraction
the time of analysis, no reports were available on the subsidy’s of children using ACTs (R2 ¼ 0.462).
effect in Zanzibar, Kenya or Niger. Finally, a negative association was found between mean ACT
The increases in use observed by ACTwatch household price and use in the same regions (Figure 7). The overall trend
surveys of children under five in Madagascar, Nigeria and was strongly influenced by a single outlier from Madagascar,
Uganda varied within SES groups and within urban and rural where price was >5 dollars. Excluding this point from analysis
strata between baseline and endline survey rounds (Figure 4). and accounting for correlation, on average a $1 increase in ACT
These classifications reflect categorizations made by the price was associated with an OR for use of 0.30 (Z ¼ 3.02,
ACTwatch Group in their reports on each country (ACTwatch P < 0.001) among all ages, and 0.153 (Z ¼ 6.29, P < 0.001)
Group and ABMS/Benin et al. 2012). among children. Ignoring correlation and again excluding the
6 HEALTH POLICY AND PLANNING

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Figure 3 Of those obtaining anti-malarials from the private sector, the proportion that obtained an ACT by country before and during
implementation of the AMFm. Data are from ACTwatch surveys in Madagascar, Nigeria, and Uganda and contemporary surveys in Tanzania and
Ghana. The timing of each survey with respect to the beginning of the ACT subsidy is given in months in the numbers above each bar. All results are
from household surveys except in Tanzania and Ghana, where figures represent the results of exit interviews with anti-malarial purchasers.

A B

Figure 4 Changes in ACT use in AMFm countries by rurality and SES. (A) Increases in use of ACTs in the private sector by children under five in
the lowest and highest SES groups reported in ACTwatch household surveys before and after implementation of the AMFm in Madagascar, Nigeria
and Uganda. (B) Increases in use of ACTs by children under five in urban and rural areas as reported in ACTwatch household surveys before and
after implementation of the AMFm in Madagascar, Nigeria and Uganda.

outlier, a $1 decrease in price was associated with a 24 percent- experimental studies, programmatic subsidies and the AMFm
age point increase in ACT use among those of any age all consistently demonstrate a negative association between
(R2 ¼ 0.302). Restricting only to surveys measuring price for ACT use and price. In most non-experimental examples, the
paediatric drugs and use by children under five, a $1 decrease lack of controls for comparison means it is impossible to assess
in ACT price was associated with a 32 percentage point increase the attributable impact precisely, but in the absence of other
in ACT use (R2 ¼ 0.594). major interventions aimed at increasing use among private
sector treatment-seekers, it is likely that subsidy implementa-
tion plays an important role.
The influence of subsidies on ACT use appears consistent
Discussion within subgroups such as children under five and more remote
The results of this review suggest that reducing the retail price and poorer populations. Contrary to some stated concerns
of ACTs can successfully increase ACT use, although evidence (Oxfam 2012), this finding suggests that ACT price reductions
from rigorous studies remains scant. Available results from may have substantial impact on populations that have been
SUBSIDIES INCREASE ACT USE: A SYSTEMATIC REVIEW 7

Figure 5 ACT prices and stocking in the private sector. The dashed

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Figure 7 ACT prices and use in the private sector. The dashed line is
curve line is the logistic trend for all ages, and the solid line is the
the logistic curve for all ages, and the solid line is the logistic trend for
logistic trend for under-fives only. Both lines represent the trend
children under 5 years of age. Both trend lines do not include the high-
without the outlier point, a region in Madagascar with high-ACT
priced region of Madagascar.
stocking and prices.

between lower ACT prices and their increased use. It is not


possible to derive causality from these associations, and it is
possible that increased stocking of ACTs is driven by greater
consumer demand, or that price reductions are driven by
increased availability of the drugs at competing outlets.
Nevertheless, these associations, in combination with the
available evidence from controlled experimental studies and
historical experience, should suggest to policymakers that
subsidizing ACTs is likely to result in a higher fraction of
treatment seekers receiving them.
This analysis did not examine whether increases in ACT use
were specifically among individuals with true malaria infection,
although understanding this relationship will be critical for
evaluating the true public health significance of increased ACT
use (Cohen et al. 2012a,b). One of the primary concerns with
implementing a subsidy is that low-cost ACTs may be given
to patients whose symptoms are not truly caused by malaria
infection (Moon et al. 2009; Kamal-Yanni et al. 2012). To
mitigate this risk, ACT subsidies might be considered along
Figure 6 ACT stocking and use in the private sector. Relationship with other interventions such as distribution of subsidized
between stocking of ACTs in private sector or outlets and the fraction of diagnostic tests, as has been conducted in Cambodia (Yeung
anti-malarial users that receive ACTs, by all ages and by children under
five only. The dashed line is the trend for all ages, and the solid line is et al. 2011). Alternatively, ACT subsidies may be reserved for
the trend for under-fives only. places where nearly all treatment seekers have a high prob-
ability of being infected with malaria (Cohen et al. 2012a,b).
It will be important for policymakers to weigh the costs
and benefits of implementing a subsidy against those of other
identified as being most at risk of malaria mortality (Barat et al. potential interventions, particularly in light of constrained
2004). With as many as 60% of young children in areas with resources for malaria programmes (WHO 2013). The results of
the highest burden of malaria obtaining treatment through this investigation provide an initial basis for evaluating the
private channels (Cohen et al. 2012a,b), these findings suggest impact of subsidizing ACTs on the fraction of suspected malaria
that subsidies may be a useful tool for increasing overall ACT cases who receive them. Results, though based on a limited
coverage among vulnerable populations not currently reached evidence base, suggest that a 1 dollar reduction in ACT price
by the public health system. may increase the fraction of suspected malaria cases seeking
This review empirically demonstrates significant relationships treatment in the private sector who receive ACTs instead of
between lower ACT prices and their increased availability at other drugs by 24 percentage points. Evaluating whether such
retail outlets, between increased ACT availability and a higher an investment is worthwhile requires weighing context-specific
fraction of consumers who receive them, and, transitively, factors including the fraction of suspected malaria cases who
8 HEALTH POLICY AND PLANNING

treat outside the formal health sector and the prevalence of ACTwatch Group, Population Services International. 2011. Household
malaria infection in this population (Cohen et al. 2012a,b). Survey Report Kingdom of Cambodia. Nairobi, Kenya: Population
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Barat LM, Palmer N, Basu S et al. 2004. Do malaria control interventions
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Accuracy and completeness of mothers’ recall of diarrhoea occur-
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