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    Report On The High Healthcare Costs in India

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    Sydko
    This report analyzes the high healthcare costs in India by examining the country's healthcare system infrastructure and reliance on out-of-pocket payments. The report hypothesizes that India's high costs are partially due to deficiencies in infrastructure and over-reliance on out-of-pocket payments. The report then provides an overview of India's public and private healthcare sectors and financing mechanisms like out-of-pocket payments, health insurance, and government schemes. Regression analysis of government health expenditure data from 20 states found that on average, 62.6% of total health expenditures were financed through out-of-pocket payments, supporting the hypothesis that high costs are linked to infrastructure and reliance on self-payments.

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    Report On The High Healthcare Costs in India

    Uploaded by

    Sydko
    77 views3 pages
    This report analyzes the high healthcare costs in India by examining the country's healthcare system infrastructure and reliance on out-of-pocket payments. The report hypothesizes that India's high costs are partially due to deficiencies in infrastructure and over-reliance on out-of-pocket payments. The report then provides an overview of India's public and private healthcare sectors and financing mechanisms like out-of-pocket payments, health insurance, and government schemes. Regression analysis of government health expenditure data from 20 states found that on average, 62.6% of total health expenditures were financed through out-of-pocket payments, supporting the hypothesis that high costs are linked to infrastructure and reliance on self-payments.

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    Report on the high healthcare costs in India

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    This report analyzes the high healthcare costs in India by examining the country's healthcare system infrastructure and reliance on out-of-pocket payments. The report hypothesizes that India's high costs are partially due to deficiencies in infrastructure and over-reliance on out-of-pocket payments. The report then provides an overview of India's public and private healthcare sectors and financing mechanisms like out-of-pocket payments, health insurance, and government schemes. Regression analysis of government health expenditure data from 20 states found that on average, 62.6% of total health expenditures were financed through out-of-pocket payments, supporting the hypothesis that high costs are linked to infrastructure and reliance on self-payments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    77 views3 pages

    Report On The High Healthcare Costs in India

    Uploaded by

    Sydko
    This report analyzes the high healthcare costs in India by examining the country's healthcare system infrastructure and reliance on out-of-pocket payments. The report hypothesizes that India's high costs are partially due to deficiencies in infrastructure and over-reliance on out-of-pocket payments. The report then provides an overview of India's public and private healthcare sectors and financing mechanisms like out-of-pocket payments, health insurance, and government schemes. Regression analysis of government health expenditure data from 20 states found that on average, 62.6% of total health expenditures were financed through out-of-pocket payments, supporting the hypothesis that high costs are linked to infrastructure and reliance on self-payments.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 3

    Report on the high healthcare costs in India

    Submitted by Abhigyan Choubey


    (205PGE002)

    Problem Statement
    The burgeoning healthcare costs in developing countries present a multifaceted
    challenge that has far-reaching implications for public health and social equity.
    High healthcare expenditures not only deter individuals from seeking essential
    medical care but also perpetuate disparities in healthcare access, leaving
    marginalized communities particularly vulnerable. This problem is compounded
    by the inadequacies in healthcare system infrastructure, such as a shortage of
    healthcare facilities, inefficient resource allocation, and a lack of healthcare
    workforce, which contribute to the overall cost burden. Additionally, the
    widespread practice of out-of-pocket payments places a heavy financial strain
    on individuals and households, often without the safety net of insurance
    coverage or financial protection.
    Understanding the intricate interplay between escalating healthcare costs,
    healthcare system infrastructure deficiencies, and reliance on out-of-pocket
    payments is essential to address this critical issue effectively. Research into
    these dynamics will provide valuable insights into the root causes of high
    healthcare expenditures, enabling the development of evidence-based strategies
    to enhance healthcare affordability and equitable access for underserved
    populations in developing countries. Finding sustainable solutions to lower
    healthcare costs while improving healthcare quality is crucial to promoting the
    overall health and well-being of these communities and achieving broader
    socioeconomic development goals.

    Hypothesis
    "The high healthcare costs in India (and other developing countries) can be
    partially attributed to a lack of efficient healthcare system infrastructure and a
    heavy reliance on out-of-pocket payments, which, if addressed through targeted
    reforms and increased public investment, could lead to improved healthcare
    accessibility and affordability."
    This hypothesis suggests that there may be a correlation between the structure
    of healthcare systems, the reliance on out-of-pocket payments, and the high
    healthcare costs in India. It posits that addressing these structural issues could
    potentially alleviate the burden of healthcare expenses on individuals and
    households, making healthcare more accessible and affordable. To test this
    hypothesis, one would need to conduct empirical research, collect data on
    healthcare systems, financing mechanisms, and costs, and analyse the
    relationship between these variables.

    An Overview
    Healthcare System in India
    India has a diverse healthcare system, with both public and private sectors
    playing significant roles.
    1. Public Healthcare: India's public healthcare system is primarily managed
    by the government and includes various levels of care, from primary
    health centres (PHCs) to tertiary care hospitals. The government's
    flagship program for public healthcare is the National Health Mission
    (NHM), which aims to provide accessible and affordable healthcare
    services.
    2. Private Healthcare: The private healthcare sector in India is highly
    developed and offers a wide range of services, from small clinics to large
    corporate hospitals. Private healthcare is often preferred for its perceived
    better quality and shorter waiting times.
    Financing Mechanisms:
    1. Out-of-Pocket Payments: One of the significant financing mechanisms in
    India's healthcare system is out-of-pocket payments (OOP). A significant
    portion of healthcare expenses in India is borne directly by individuals
    and households.
    2. Health Insurance: Health insurance coverage in India has been growing,
    but it remains relatively low compared to many developed countries.
    Both public and private health insurance options are available.
    3. Government Schemes: The Indian government runs various healthcare
    schemes, such as the Rastriya Swasthya Bima Yojana (RSBY) and
    Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY),
    which aim to provide financial protection to vulnerable populations.

    Methodology
    Data taken from the Ministry of Health and Family Welfare for 2016-17, which
    focussed on the key indicators of health financing for select 20 states. OLS
    regression was performed on the total health expenditure that was incurred and
    way of financing it.

    Results
    The data indicated that out of the total health expenditure an average of 30% of
    the expenditure was financed by Govt. health expenditure and a whopping
    62.6% of it was financed by out-of-pocket expenditure.
    The autonomous government expenditure was 3294 crores and out of pocket
    expenditure was 4547 crores, an average of the 20 states.

    Conclusion
    The results were in coherence with the hypothesis on the reliance of out-of-
    pocket payments, and the high healthcare costs in India and low insurance and
    government coverages.

    Data Sources
    1. MOHFW. Annual Report 2019-2020. Available at:
    HealthandFamilyWelfarestatisticsinIndia201920.pdf (mohfw.gov.in)
    2. Indian Health System and health care financing, from A Handbook of
    Health System Costing, pp17-26, by Malkeet Singh and Gaurav Jyani

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