Determinants of distress financing for healthcare service utilization: a convergent mixed-method study at a tertiary hospital in Malaysia

Households with ill members often face financial hardship when seeking healthcare. Households mobilize their resources from various sources to pay for treatment costs. Financially, some households resort to borrowing money and selling their assets. This type of financial coping strategy is called distress financing (DF). This study aims to estimate the prevalence and determinants of DF among households with hospitalized members at University Malaya Medical Centre, Malaysia. It further explores the dynamics of DF and its impact on households' welfare by employing a convergent mixed-method approach. Quantitative data were collected using a structured interview. Households having reported to either borrow money, sell their assets, and/or withdraw from an employee provident fund were categorized as those suffering DF. To explore how households coped with high medical expenses and the consequences of DF, seven households adopting more than one DF strategy were purposively selected for in-depth interview. Of 199 households, 22 (11.1%) reported undergoing DF. Psychological distress, medical indebtedness, and poverty were typical consequences of DF. During hardship, the social network played a principal role in alleviating the financial burden, further emphasizing the importance of kinship. Households undergoing catastrophic health expenditure, headed by Chinese ethnicity, living in states other than Selangor, and living in a rental house were 8.2, 4.6, 4.4, and 3.5 times more likely to undergo DF, respectively. Targeted assistance in removing financial barriers would assure the continuum of care among households possibly suffering DF, thereby improving their health outcomes.