Government and families spend more on private hospitalization than public facilities, says study

New Delhi: A new research conducted by IIT-Jodhpur has found that the government and families together spend more per hospital in private hospitals than in public facilities.

Research It was done in 64 health facilities in Chhattisgarh. The study found that, on an average, the daily hospitalization expenditure in government hospitals was around Rs 2,800 and in private facilities was Rs 6,800. The researchers calculated the difference in hospitalization costs per episode in private and public hospitals with and without government subsidies.

The study suggests that “inpatient care was a larger contributor to total health expenditure in India than any other form of health care use”.

Alok Ranjan, assistant professor, School of Liberal Arts, IIT-Jodhpur, who led the research, said the study found that if someone opted for private hospital care, the total cost per episode would be around Rs 38,000. (without government subsidy).

“For the public sector, the cost of hospitalization per day was around Rs 14,000 (without subsidy),” Ranjan said.

“We further found that out of Rs 38,000 spent on private health facilities, 86 per cent was out of pocket. When it comes to the public sector, 31 per cent of the expenditure is out of pocket,” he added.

‘Public health facilities are more cost-effective’

The study also provides information on how much money India needs to build a strong public health infrastructure. Investment in public health facilities, the research notes, is key to achieving universal health coverage in India.

The research states that public health facilities are also more cost-effective than private hospitals for similar health services.

“Provision of inpatient care under public facilities is more cost-effective in India than in the private sector. There is an urgent need to invest in public health facilities as compared to buying it from the private sector,” Ranjan said.

Dr Sameer Garg (first author and executive director, State Health Resource Centre, Chhattisgarh; Narayan Tripathi, senior program coordinator, SHRC; and Kirti Kumar Bebarta, program associate, SHRC, were also part of the study team.


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