The Indian Institute of Technology (IIT) Jodhpur conducted research on how much the government and households spend on an episode of hospitalization during its visit to public and private healthcare facilities in India.
This research showed that the government and households together spend substantially more per hospitalization in private hospitals than in public hospitals.
According to the research analysis, the average total expenditure per day of hospitalization in India is Rs 2,833 for public hospitals and Rs 6,788 for private hospitals. Overall, supply-side public spending contributed 16% of total spending, demand-side spending through publicly funded health insurance (PFHI) 16%, cash incentives 1% and out-of-pocket expenditure (OOPE) at 67 percent. OOPE constituted 31% of the total expenditure per episode in public hospitals and 86% in private hospitals.
Highlighting the need for research, Dr Alok Ranjan, Assistant Professor, School of Liberal Arts, IIT Jodhpur, said, “Providing hospital care in public facilities is more cost-effective compared to the sector India’s private sector. Hence, there is an urgent need to invest in public health facilities as opposed to buying them from the private sector.”
This comparative study for public and private hospitals was conducted specifically in the Indian state of Chhattisgarh by Dr. Alok Ranjan, Assistant Professor, School of Liberal Arts, IIT Jodhpur, along with Dr. Samir Garg (first author and Executive Director, State Health Resource Center). (SHRC), Chhattisgarh); Narayan Tripathi, Senior Program Coordinator, SHRC; and Kirtti Kumar Bebarta, Program Associate, SHRC.