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The present work has as its objective to evaluate how the investment and sanitation indicators, as well as how the efficiency of those services affect the average cost of hospital stays due to parasitic-infectious diseases linked to poor sanitation in brazilian municipalities. To achieve the given objectives, the efficiency of sanitation services was measured using the data envelopment analysis technique and a multiple regression analysis was estimated using explanatory variables which captured the effect of an improvement in the quality and access to sanitation as well as an increase in investment on provided services. The results showed that 20% of municipalities have efficient services and that the investment in new water and sewer links to the installed sewage network, as well as an increase in the extension of water pipe links for each meter of the service network contribute to reduce the average cost of hospital stays due to diseases associated to inadequate sanitation. With respect to validity and adjustment of the model, its performance was deemed satisfactory having in mind the fact that it did not violate the necessary assumptions of the multiple regression model. With the results found it is possible to enlighten in an objective way that the main sanitation parameter that must be prioritized in a national policy which does not fail in its objectives is the increase in the access of piped water.

THE IMPACT OF INEFFICIENT AND INADEQUATE SANITATION DISEASES ON THE AVERAGE COST OF HOSPITAL ADMISSIONS IN BRAZILIAN MUNICIPALITIES