The high cost of India's private healthcare model and its impact on affordability
An analysis reveals that India's private healthcare model, while offering advanced care, is prohibitively expensive for many, with out-of-pocket expenditure being a major concern. The article highlights that the cost of a single hospitalisation can exceed the average annual income of 90% of Indians. It points out that the current fee-for-service model incentivizes over-prescription and unnecessary procedures. The analysis suggests that a shift towards a capitation model, where providers are paid a fixed amount per patient, could improve affordability and quality, along with better regulation and transparency.
Key Points
- India's private healthcare model is expensive, with high out-of-pocket expenditure for most citizens.
- The cost of a single hospitalisation often exceeds the annual income of a large percentage of the population.
- The fee-for-service model in private healthcare incentivizes over-prescription and unnecessary procedures.
- A shift to a capitation model and improved regulation are suggested to enhance affordability and quality.
Exam Facts
- Out-of-pocket expenditure accounts for 62.6% of total health expenditure in India.
- A single hospitalisation can exceed the average annual income of 90% of Indians.
- The analysis mentions the need for a review of the 2010 Clinical Establishments Act.
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