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How much do government and households spend on an episode of hospitalisation in India? A comparison for public and private hospitals in Chhattisgarh state

Author

Listed:
  • Samir Garg

    (State Health Resource Centre)

  • Narayan Tripathi

    (State Health Resource Centre)

  • Alok Ranjan

    (Indian Institute of Technology)

  • Kirtti Kumar Bebarta

    (State Health Resource Centre)

Abstract

Background Improvements in the financing of healthcare services are important for developing countries like India to make progress towards universal health coverage. Inpatient-care contributes to a big share of total health expenditure in India. India has a mixed health-system with a sizeable presence of private hospitals. Existing studies show that out-of-pocket expenditure (OOPE) incurred per hospitalisation in private hospitals was greater than public facilities. But, such comparisons have not taken into account the healthcare spending by government. Methods For a valid comparison between public and for-profit private providers, this study in Indian state of Chhattisgarh assessed the combined spending by government and households per episode of hospitalisation. The supply-side and demand-side spending from public and private sources was taken into account. The study used two datasets: a) household survey for data on hospital utilisation, OOPE, cash incentives received by patients and claims raised under publicly funded health insurance (PFHI) schemes (n = 903 hospitalisation episodes) b) survey of public facilities to find supply-side government spending per hospitalisation (n = 64 facilities). Results Taking into account all relevant demand and supply side expenditures, the average total spending per day of hospitalisation was INR 2833 for public hospitals and INR 6788 for private hospitals. Adjusted model for logarithmic transformation of OOPE while controlling for variables including case-mix showed that a hospitalisation in private hospitals was significantly more expensive than public hospitals (coefficient = 2.9, p

Suggested Citation

  • Samir Garg & Narayan Tripathi & Alok Ranjan & Kirtti Kumar Bebarta, 2022. "How much do government and households spend on an episode of hospitalisation in India? A comparison for public and private hospitals in Chhattisgarh state," Health Economics Review, Springer, vol. 12(1), pages 1-15, December.
    • Handle: RePEc:spr:hecrev:v:12:y:2022:i:1:d:10.1186_s13561-022-00372-0
    DOI: 10.1186/s13561-022-00372-0
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    References listed on IDEAS

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    1. Shailender Kumar Hooda, 2015. "Private Sector in Healthcare Delivery Market in India: Structure, Growth and Implications," Working Papers 185, Institute for Studies in Industrial Development (ISID).
    2. Planning Commission, 2011. "High Level Expert Group Report on Universal Health Coverage for India," Working Papers id:4646, eSocialSciences.
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