Poor people often do not use skilled medical services because they are afraid of the cost.
LAMB has so far managed to find ways to make healthcare accessible to the poor, and to the very poor.
The annual budget for normal operations of LAMB is now nearly US$4 million, GB £3.3 million, Taka 34 crore.This excludes purchases of new and replacement equipment, and significant maintenance, which probably adds on another US$ 100,000 per year.
LAMB earns about 80% of the costs it spends for normal operation. For the rest, particularly those parts which enable it to serve the poorest of the poor, LAMB mainly has to rely on donations.
The income split for LAMB’s normal operations is approximately:
- 27 % as patient fees and medicines
- 6 % as training and school fees
- 45 % for work done for grant providers
- 2 % as other income
- 20 % from donations to LAMB (about half of which goes to Poor Fund subsidy)
Patient fees primarily are from the hospital, although some from community clinics. The Poor Fund subsidizes partly or wholly those least able to pay. Medicines are charged virtually at cost.
The work done for grant providers is primarily for community health and development work. Partner organizations such as Plan International, Global Health (Korean), Women’s Hope International (Swiss), and LAMB Health UK apply to larger bilateral donors such as UKAid, USAID, and KOICA (Korean).
There is however also work done in the hospital for grant providers. Engender Health (fistula) and Glencoe Foundation (club foot) support restorative surgery.
Many grant providers – PLAN, Tearfund, Operation Cleft, Glencoe Foundation – rely on individual donations to enable their work, but use LAMB to implement their specific target activities.
Despite earning the majority of its income, LAMB relies on charitable donations for approximately 20% of its income – primarily to cover the hospital and Poor Fund deficits. This funding comes currently mainly via Friends of LAMB groups – LAMB Health, UK (LH.UK), in the USA (FOL), and in Australia (FOLIA), and also via World Mission Prayer League (WMPL) in the USA. They raise invaluable support from individuals, churches, and other groups.
Last but not least, LAMB also receives donations in kind from the services of the expatriate missionary staff. They receive no salaries, but are able to serve at LAMB thanks to supporters making contributions for living allowances in their home countries.
How is the Money Used?
One way of describing this is that:
- 50 % goes to salaries
- 17 % goes to staff field work and training
- 15 % goes to purchase of medicines and supplies
- 19 % goes to capital, maintenance and other costs
There are areas that we consider key to our witness and service to the poor that donors will not fund – a lot of the Poor Fund, and chaplaincy. It is only the gifts that we receive from churches and individuals that allow us to maintain such freedom of action.