Money at heart of healthcare mess
A majority of Indians are struggling to meet their health expenditure, shows a recent National Sample Survey report. Only about 20% of Indians are covered by state or private health insurance. About 86% in rural and 81% in urban areas have no coverage.
Most nations have achieved free and universal healthcare, except for a few like the US, some African countries and India. In India, the idea of free healthcare takes a beating primarily due to lack of quality resources and infrastructure.
As the data shows, when it comes to hospitalisation, around 58% Indians choose private hospitals over government ones. This, despite the average expenditure per hospitalisation costing Rs 38,000 in private hospitals and just over Rs 4,800 in government facilities in urban areas. The only reason why people are willing to shell out extra money is quality, say public health experts.
The cost difference worsens for serious ailments. For instance, the average cost of cancer treatment in a private hospital is over Rs 93,000. The same in a government facility costs just over Rs 22,000. Actual costs in big cities go much higher.
The high cost of private healthcare is pushing people towards debt. Over 20% of overall health expenditure is met through borrowings, contributions from friends, or through the sale of physical assets like land or house. If the trend continues, experts say the situation will push more Indians into debt crises.
The solution lies in increasing overall public health expenditure—to build quality infrastructure and to invest in experts. Doctors working in government hospitals across the country have been protesting time and again, not without reason.
There is massive disparity in compensation between private and public sectors. The average fee of a surgeon in an urban government hospital per case is a mere Rs 197, while a private hospital surgeon gets Rs 6,284. This inequity has drained the public healthcare system of talent, thereby forcing more people to spend all their financial resources in search of quality medical treatment in private hospitals.