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Investigation on the Effect of Household Income and Demographic Factors on Healthcare Cost in Perak

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Proceedings of the 7th International Conference on the Applications of Science and Mathematics 2021

Part of the book series: Springer Proceedings in Physics ((SPPHY,volume 273))

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Abstract

This paper focusing on the factor that effect the household income and demographic factors on healthcare cost in Perak as the increasing healthcare cost had brought many concerns to the community. Factors affecting the choice of hospital and healthcare is the main issue raise in this study. In the pilot study, 50 respondents were used to test for reliability using Cronbach’s alpha. Result shows a reliability value of 0.785. Then, convenience sampling was used to collect response from 307 respondents who visited private and public hospitals in Perak. The data collected was used to determine the healthcare awareness of people in Perak by using the Chi-square test and cross-tabulation analysis. Meanwhile, LASSO and LASSO logistic regression were used to identify the factors affecting the choice of hospital. The better model in identifying factors affecting the choice of hospital was computed based on the accuracy, Brier score and AUC. Next, LASSO regression was applied to explore the effect of household income and demographic factors on healthcare cost in Perak. Based on the findings, people in Perak had high awareness of health insurance and personal healthcare. LASSO logistic regression was found to be the best model in identifying factors affecting the choice of hospital with a higher prediction accuracy, 0.7917 and lower Brier score, 0.3123. Variables affecting the choice of hospital and healthcare cost included education level, employment status, household income, ownership of household and having/not having an insurance policy. These findings could guide authority to improve the healthcare system for the benefits of people in Perak.

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Acknowledgements

The authors would like to thank the Universiti Tun Hussein Onn Malaysia (UTHM) for giving the chance to carry out this research and funding The authors are also extremely thankful to the reviewers for their motivating remarks.

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Authors and Affiliations

  1. Data Analytics, Sciences and Modeling Focus Group, Universiti Tun Hussein Onn Malaysia, 84600, Pagoh, Johor, Malaysia

    Khuneswari Gopal Pillay

  2. Department of Mathematics and Statistics, Faculty of Applied Sciences and Technology, Universiti Tun Hussein Onn Malaysia, 84600, Pagoh, Malaysia

    Khuneswari Gopal Pillay & Wong Pui Yee

Authors
  1. Khuneswari Gopal Pillay
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  2. Wong Pui Yee
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Corresponding author

Correspondence to Khuneswari Gopal Pillay .

Editor information

Editors and Affiliations

  1. Universiti Tun Hussein Onn Malaysia, Johor, Malaysia

    Aida Binti Mustapha

  2. Universiti Tun Hussein Onn Malaysia, Johor, Malaysia

    Suhadir Shamsuddin

  3. Universiti Tun Hussein Onn Malaysia, Johor, Malaysia

    Syed Zuhaib Haider Rizvi

  4. Universiti Tun Hussein Onn Malaysia, Johor, Malaysia

    Saliza Binti Asman

  5. Universiti Tun Hussein Onn Malaysia, Johor, Malaysia

    Siti Suhana Jamaian

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Pillay, K.G., Yee, W.P. (2022). Investigation on the Effect of Household Income and Demographic Factors on Healthcare Cost in Perak. In: Mustapha, A.B., Shamsuddin, S., Zuhaib Haider Rizvi, S., Asman, S.B., Jamaian, S.S. (eds) Proceedings of the 7th International Conference on the Applications of Science and Mathematics 2021. Springer Proceedings in Physics, vol 273. Springer, Singapore. https://doi.org/10.1007/978-981-16-8903-1_24

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