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Private Sector in Indian Healthcare Delivery: Consumer Perspective and Government Policies to promote private Sector

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  • Utkarsh Shah

Abstract

This research paper attempts to collate literature from various sources, in an attempt to answer three pertinent questions related to healthcare in India. Firstly, what is it meant by ‘private sector’ in healthcare delivery system of India, secondly how has the private sector evolved over the decades and what has been the role of the government in propelling the growth. Finally, the paper tries to highlight some of the factors that have promoted the growth of private sector in India with specific reference to quality of medical care. The paper explicitly indicates that the deficiencies in the public health delivery system of India, was the key to growth of private infrastructure in healthcare. The shift of hospital industry for ‘welfare orientation’ to ‘business orientation’ was marked by the advent of corporate hospitals, supported by various policy level initiatives made by the government. Today, there are over 20 international healthcare brands in India with several corporate hospitals. However, a large section of the ‘private healthcare delivery segment’ is scattered and quality of medical care continues to remain a matter of concern. This paper tracks the various government initiatives to promote private investment in healthcare and attempts to explore the reasons for preference of the private sector. Surprisingly, in contrast to contemporary belief, quality of medical care doesn’t seem to be the leading cause for preference of the private sector. Except for a few select corporate and trust hospitals, quality of medical care in private sector seems to be poor and at times compromised.

Suggested Citation

  • Utkarsh Shah, 2010. "Private Sector in Indian Healthcare Delivery: Consumer Perspective and Government Policies to promote private Sector," Information Management and Business Review, AMH International, vol. 1(2), pages 79-87.
  • Handle: RePEc:rnd:arimbr:v:1:y:2010:i:2:p:79-87
    DOI: 10.22610/imbr.v1i2.874
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    References listed on IDEAS

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    1. Bhat Ramesh & Jain Nishant, 2006. "Financial Performance of Private Sector Hospitals in India:Some Further Evidence," IIMA Working Papers WP2006-04-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Bhat Ramesh, 1999. "Strengthening Emergency Care through the Provision of Ambulance in Public Health Facilities: Economic Issues and Policy Implementation Guidelines," IIMA Working Papers WP1999-07-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. Ahuja, Rajeev, 2004. "Health insurance for the poor in India," Indian Council for Research on International Economic Relations, New Delhi Working Papers 123, Indian Council for Research on International Economic Relations, New Delhi, India.
    4. Bhat Ramesh, 2006. "Financial Health of Private Sector Hospitals in India," IIMA Working Papers WP2006-01-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    5. Ramesh Bhat, 2006. "Financial Health of Private Hospitals in India," Working Papers id:384, eSocialSciences.
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    Cited by:

    1. Mulcahy, Patrick & Mahal, Ajay & McPake, Barbara & Kane, Sumit & Ghosh, Prabir Kumar & Lee, John Tayu, 2021. "Is there an association between public spending on health and choice of healthcare providers across socioeconomic groups in India? - Evidence from a national sample," Social Science & Medicine, Elsevier, vol. 285(C).
    2. Shailender Kumar Hooda, 2017. "Foreign Investment in Hospital Sector in India," Foreign Trade Review, , vol. 52(4), pages 247-264, November.
    3. Shailender Kumar Hooda, 2015. "Foreign Investment in Hospital Sector in India: Trends, Pattern and Issues," Working Papers 181, Institute for Studies in Industrial Development (ISID).

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