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The main factor is dampness due to urine and faeces. The commonest type is irritant contact dermatitis but consider also:
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Keep the area dry
Change wet or soiled napkins often—use highly absorbable disposable nappies
Wash gently with warm water and pat dry (do not rub)
Avoid excessive bathing and soap (can use a soap substitute)
Expose the bare skin to fresh air wherever possible
Avoid powders and plastic pants
With each nappy change, apply a barrier preparation (Vaseline or zinc cream) to protect the area
Standard treatment for persistent or widespread rash 1% hydrocortisone (alone) or with nystatin or clotrimazole cream, e.g. Hydrozole (qid after changes)—can get separate steroid and antifungal creams and mix before application