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LATEST NEWS UPDATES | Study: Rural health spending went down in NRHM yrs-Abantika Ghosh

Study: Rural health spending went down in NRHM yrs-Abantika Ghosh

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published Published on Mar 10, 2012   modified Modified on Mar 10, 2012

A study on the effect of the National Rural Health Mission (NRHM) on health expenditure in rural areas shows that between 2004-05 and 2009-10, the total monthly per capita medical expenditure in villages went up by 44 per cent against a corresponding increase of 65 per cent in urban areas.

Over the same period, total per capita expenditure went up by 66 per cent in villages and 70 per cent in towns and cities. Adjusting for inflation, rural areas showed a 7 per cent decrease in health spend, even as all other expenses increased by the same quantum.

NRHM was started in 2005 to bolster rural healthcare by posting more trained people as the first point of contact in villages, and by giving healthcare training to a larger number of people from the community.

The study, which was presented at the annual conference of Indian Public Health Association in Kochi in February, has been authored by Dr Sajjan Yadav, director (NRHM) in the health ministry, and Dr Sonali Rawat, a consultant with the ministry. The study was not, however, commissioned by the ministry, and was presented with the caveat that it reflected the views of the authors, and not the ministry.

“At current prices, the total per capita medical expenditure has increased sharply in urban areas between 2004-05 and 2009-10 as compared to the increase in rural areas. At constant prices, decline in the total per capita medical expenditure has been reported in rural areas and the decline of 7 per cent is very significant. This is despite the fact that overall per capita expenditure at constant prices has shown an increase of 7.17 per cent between 2004-05 and 2009-10.

“On the other hand, at constant price also the urban areas have seen a significant increase of 10.5 per cent in out-of-pocket expenditure on health. Thus, from 2004-05 to 2009-10, the escalation of OOP expenses on healthcare has been reversed in rural areas while in urban areas, the upward spiral continues unabated,” the study said.

The authors argued that the findings are a compelling reason for increased investment in the health sector. The prime minister’s office has recently announced a target of 2.5 per cent of GDP for health spending by the end of the 12th Five Year Plan.

The primary source of survey data was household consumer expenditure surveys of the National Sample Survey Organisation.

The Indian Express, 10 March, 2012, http://www.indianexpress.com/news/study-rural-health-spending-went-down-in-nrhm-yrs/921921/


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