by G Venkata Sai Lohit
On 2nd February 2021, a newspaper headline surprised everyone – “Budget 2021: Health Expenditure increased by 137 percent”. For a non-regular reader, it might sound like an extraordinary initiative, only to find out a minimal surge from 1.6% (2020) to 3.81% (2021) of the entire budget! Some might argue that this initiative was introduced solely to tackle the unprecedented and dire situation of the nation. Such arguers even assume this scheme as an enactment of compulsion rather than an onus. The OECD nations are estimated to spend on average 8.8% of GDP on healthcare in 2018. By comparison, India is nowhere near to its counterparts on ‘National Income’.
The provision of efficient and affordable healthcare services is an imperative and expensive undertaking by any government. India, as a nation, has several other obstacles to address other than public health thereby, abstaining from allocating requisite resources. According to OECD Health Statistics 2019, the share of GDP on health spending contributed by the Indian government is only 0.9% of 3.6%. Hence, privatization of healthcare is of immense significance as it fills the need for quality healthcare services in such a state of affairs.
Private Hospitals are better equipped with state-of-the-art medical equipment to offer quality healthcare services. According to the Institut Montaigne, 62% of the health infrastructure in India accounts for private hospitals. The Government of India stated that the doctor-patient ratio of 1:1445 is less than the WHO’s prescribed norm of 1:1000. Public hospitals have fewer doctors but more than proportionate patients. However, private hospitals with their abundant resources can employ more qualified doctors to take care of their patients. Private hospitals are also known for their sanitation and hygiene practices. Such practices keep their patients safe from any infection or illness. The limited number of patients in private hospitals makes it easier to maintain hygiene at all levels which include, bathrooms, operation theaters, patient wards, and others. Private hospitals often promote themselves as specialists in some treatments. Their contemporary medical equipment and distinguished doctors enable them to perform specialist treatments. Patients with medical insurance accepted by private hospitals can have the best of both worlds as it reduces medical costs while procuring quality healthcare services.
One of the drawbacks of private hospitals is the exorbitant bills faced by the patients. Public hospitals provide highly subsidized healthcare services which entice a mass section of people who cannot meet the expense of private hospital's treatment. A recent study revealed that hospitalization in a private hospital is six times costlier than in a public hospital. The report ‘Key indicators of social consumption in India: Health’ disclosed that the average expenditure in a public hospital is Rs. 4452 while a private hospital is Rs. 31,845. Moreover, private hospitals are infamously known for their biased reception towards people with the ability to pay against those who don’t. They prefer to perform treatment for those who can afford and have some medical coverage. In contrast, public hospitals offer equal treatment to everyone irrespective of their demographics. Private organizations indulge in exploitative activities with a motive to earn higher profits. A recent study by the National Pharmaceutical Pricing Authority (NPPA) established that private hospitals were charging 650% markup on a drug for cardiovascular stents and 450% markup on knee implants.
However, against all odds, privatization of healthcare enabled people to have better access to hospitals and treatment. The void of inadequate public hospitals is satiated by private hospitals. However, to regulate the commercial quest of private hospitals, the governing bodies should implement stringent rules and guidelines.
On 2nd February 2021, a newspaper headline surprised everyone – “Budget 2021: Health Expenditure increased by 137 percent”. For a non-regular reader, it might sound like an extraordinary initiative, only to find out