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LATEST NEWS UPDATES | Stopping the slide of health care in India -Satya Mohanty

Stopping the slide of health care in India -Satya Mohanty

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published Published on Dec 21, 2020   modified Modified on Dec 23, 2020

-The Hindu

Policymakers need to focus on the larger picture with steps being taken to reclaim the space under public care

India’s health care is a dark echo chamber. It is 70% private and 30% public in a country where 80% people do not have any protection for health and the out-of-pocket expense is as high as 62%. With public spending at 1.13% of GDP and a huge shortage of health-care workers particularly nurses and midwives, policy moves and plans appear like a sound in emptiness. The novel coronavirus pandemic has revealed the mismatch between the overwhelming presence of the not so well-to-do and private health care with its revenue modelling that borders more on greed and rent gouging.

The system now

Whenever the market leaves out the majority or has an incentive to cream off, the public sector would have to step in for the allocation and production of health services. The fact is 85% of the population cannot afford high cost, corporate private health care. Where demand is created by the latter by homogenising all submarkets such as preventive, general, specialists, emergency and remedial services — where inducement is the norm — the exploitation of the unsuspecting is inevitable . While too little is being done too slowly to have any impact, private hospitals gain under the social insurance scheme in the interregnum..

Even with avowedly 12 crore card holders under Ayushman Bharat, only 1.27 crore people have taken advantage of the scheme. Private sector health care is driven by return on capital. What makes insurance and private health care an egregious combination is that the insurance backup incentivises hospitals to expand the bill but the patients do not get attended to in their best interests. The agents of the government, on the other hand, have an incentive for driving down the price of procedures; as a result, hospitals selectively offer some services and procedures (while denying some). But the ceiling level of the insurance gets claimed regardless in the interest of the hospital.

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The Hindu, 21 December, 2020, https://www.thehindu.com/opinion/op-ed/stopping-the-slide-of-health-care-in-india/article33379641.ece?homepage=true&fbclid=IwAR2gJmP-aNagwxyjNNtd-m7ju9n8UcU-SZkocjER7IT1SgR1n-AryR6qVUI


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