Page 1 of 11

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 04 Issue 03

March 2018

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 478

Hospital Health Care Management System in Public and

Private Sector of India

Mr. V.V.L.A.PRASAD

Prof. (Dr.) N.P. Sharma

Dr. Pramod Gupta (IET-Alwar)

Department of Management Studies,

Sunrise university, Alwar, Rajasthan

Abstract:

India has a vast health care system, but there remain many differences in quality between rural

and urban areas as well as between public and private health care. Despite this, India is a popular

destination for medical tourists, given the relatively low costs and high quality of its private

hospitals. International students in India should expect to rely on private hospitals for advanced

medical care. The healthcare infrastructure in India consists of primary, secondary, and tertiary

health care. The healthcare at these levels is provided by both public and private health care

providers. But nowadays there is an increasing role of private healthcare providers in providing

care to the care seekers.

Key-Words: CHC, PHC, IJOCM, GDP.

Introduction:

Healthcare system

Public healthcare

Public healthcare is free/paid for those who are below the poverty line. The public health sector

encompasses 18% of total outpatient care and 44% of total inpatient care. Middle and upper class

individuals tend to use public healthcare less than those with a lower standard of living.

Additionally, women and the eldery are more likely to use public services. The public health care

system was originally developed in order to provide a means to healthcare access regardless of

socioeconomic status. However, reliance on public and private healthcare sectors varies

significantly between states. Several reasons are cited for relying on the private rather than

Page 2 of 11

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 04 Issue 03

March 2018

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 479

public sector; the main reason at the national level is poor quality of care in the public sector,

with more than 57% of households pointing to this as the reason for a preference for private

health care. Most of the public healthcare caters to the rural areas; and the poor quality arises

from the reluctance of experienced healthcare providers to visit the rural areas. Consequently, the

majority of the public healthcare system catering to the rural and remote areas relies on

inexperienced and unmotivated interns who are mandated to spend time in public healthcare

clinics as part of their curricular requirement. Other major reasons are distance of the public

sector facility, long wait times, and inconvenient hours of operation.

Different factors related to public healthcare are divided between the state and national

government systems in terms of making decisions, as the national government addresses broadly

applicable healthcare issues such as overall family welfare and prevention of major diseases,

while the state governments handle aspects such as local hospitals, public health, promotion and

sanitation, which differ from state to state based on the particular communities involved.

Interaction between the state and national governments does occur for healthcare issues that

require larger scale resources or present a concern to the country as a whole.

Considering the goal of obtaining universal health care as part of Sustainable Development

Goals, scholars request policy makers to acknowledge the form of healthcare that many are

using. Scholars state that the government has a responsibility to provide health services that are

C:\Documents and Settings\Administrator\Desktop\Figure-4-Hierarchy-of-Public-health-Care-system-in-India.png

C:\Documents and Settings\Administrator\Desktop\Figure-4-Hierarchy-of-Public-health-Care-system-in-India.png

Page 3 of 11

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 04 Issue 03

March 2018

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 480

affordable, adequate, new and acceptable for its citizens. Public healthcare is very necessary,

especially when considering the costs incurred with private services. Many citizens rely on

subsidized healthcare. The national budget, scholars argue, must allocate money to the public

health sector to ensure the poor are not left with the stress of meeting private sector payments.

Following the 2014 election which brought Prime Minister Narendra Modi to office, the

government unveiled plans for a nationwide universal health care system known as the National

Health Assurance Mission, which would provide all citizens with free drugs, diagnostic

treatments, and insurance for serious ailments. In 2015, implementation of a universal health care

system was delayed due to budgetary concerns. In April 2018 the government announced the

Aayushman Bharat scheme that aims to cover up to Rs. 5 lakh to 100,000,000 vulnerable

families (approximately 500,000,000 persons – 40% of the country’s population). This will cost

around $1.7 billion each year. Provision would be partly through private providers.

Private healthcare

Since 2005, most of the healthcare capacity added has been in the private sector, or in

partnership with the private sector. The private sector consists of 58% of the hospitals in the

country, 29% of beds in hospitals, and 81% of doctors.

According to National Family Health Survey-3, the private medical sector remains the primary

source of health care for 70% of households in urban areas and 63% of households in rural areas.

The study conducted by IMS Institute for Healthcare Informatics in 2013, across 12 states in

over 14,000 households indicated a steady increase in the usage of private healthcare facilities

over the last 25 years for both Out Patient and In Patient services, across rural and urban areas. In

terms of healthcare quality in the private sector, a 2012 study by Sanjay Basu et al., published in

PLOS Medicine, indicated that health care providers in the private sector were more likely to

spend a longer duration with their patients and conduct physical exams as a part of the visit

compared to those working in public healthcare.

However, the high out of pocket cost from the private healthcare sector has led many households

to incur Catastrophic Health Expenditure, which can be defined as health expenditure that

threatens a household's capacity to maintain a basic standard of living. Costs of the private sector

are only increasing. One study found that over 35% of poor Indian households incur such

expenditure and this reflects the detrimental state in which Indian health care system is at the

moment. With government expenditure on health as a percentage of GDP falling over the years

and the rise of private health care sector, the poor are left with fewer options than before to

access health care services. Private insurance is available in India, as are various through