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Private Sector in Healthcare Delivery Market in India: Structure, Growth and Implications

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  • Shailender Kumar Hooda

    (Institute for Studies in Industrial Development, New Delhi)

Abstract

This study analyses the extent, growth and regional distribution of private healthcare providers in India and draws some implications. Evidence shows that, presently, nearly 10.4 lakh private health enterprises consisting of hospitals/clinics, medical/dental/diagnostics centres, homeopathy/unani/ayurveda centres, nursing homes and social service centres, are providing a wide range of healthcare services in the country. While the private sector has grown since independence, it picked up pace in the 2000s—the liberalised phase of Indian healthcare sector. However, growth has largely been urban-centric, developed regions, and/or areas/districts where existence of public facility is already high. Private sector has failed in mending the deficiency gaps in health services provision across states, districts and rural-urban regions. The number of small informal practitioners has declined over the years, while that of large formal providers have increased. The Indian private hospital sector is shifting towards corporatisation, with the majority currently concentrated in only a few districts of some states. The number of allopathic providers is growing rapidly as compared to AYUSH providers. A large number of practitioners are unskilled (without formal degree) and are not registered under any act/legislation. Over the years, the private sector has overtaken the healthcare provision and delivery market; however, services are not cost-effective. This has resulted in high healthcare cost and high out- of-pocket health payment burden in the country.

Suggested Citation

  • 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).
  • Handle: RePEc:sid:wpaper:185
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    File URL: http://isid.org.in/pdf/WP185.pdf
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    References listed on IDEAS

    as
    1. Anup Karan & Sakthivel Selvaraj & Ajay Mahal, 2014. "Moving to Universal Coverage? Trends in the Burden of Out-Of-Pocket Payments for Health Care across Social Groups in India, 1999–2000 to 2011–12," PLOS ONE, Public Library of Science, vol. 9(8), pages 1-13, August.
    2. Ministry of Statistics and Prog Implementation (MOSPI), 2015. "Key Indicators of Social Consumption in India Health," Working Papers id:7118, eSocialSciences.
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    1. Boosting India’s COVID-19 vaccination drive
      by Padmanesan Narasimhan in East Asia Forum on 2021-04-02 23:00:33

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    Cited by:

    1. Anil Gumber, 2021. "Equity in healthcare utilisation and cost of treatment in Western India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(1), pages 131-152, June.
    2. 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.
    3. Choudhury, Mita & Datta, Pritam, 2019. "Private Hospitals in Health Insurance Network in India: A Reflection for Implementation of Ayushman Bharat," Working Papers 19/254, National Institute of Public Finance and Policy.

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