*

*Health is Wealth
* Relation between economic growth and
development and health of people is well recognized

*
* Health administration in India is governed by
the Ministry of Health and Family Welfare
the world players

* Health care expenditure in India lowest among * Highly fragmented and dominated by private

*
Hospitals Pharmaceuticals Diagnostics Medical Equipment Medical Insurance Ayurved/Homeopathy

1947-1983
Welfare state model

1983-2000
Participation from Private players sought

2000 onwards
Role of government redefined Utilization of strengths of private players

*
Private sector
68 % 80 to 85 % by 2025

Public sector
32 %

* System in which the health care industry

consists of private corporations.

* Health insurance is central to private health

care.

* Basic economic principles of supply and

demand and competition to regulate itself in the open market

* Eliminating the governments role as the

healthcare provider or keeping it minimum

* Weak qualitative and quantitative infrastructure * Outreach to masses - contracting private players in areas
where the government cannot achieve expansion is a practical approach

Commercialization

Liberalization

* Basic Care at Public Hospitals * Public health facilities Inefficiently and

inadequatelt managed and staffed

* Exception AIIMS * Poorly maintained medical equipment * Primary Health Centre

* Medical protection by GIC in 1996-97 budget. * Janarogya Yojana For poor, 5-70 Yrs, Covers

upto 122$ pa, pre-post hospitalization (30-60 days) * Reasons of failure Reimbursement basis, took up to six months * Yashaswini Insurance Scheme in Karnataka (PPP) * 60 + 30, 50000 farmers covered

*
Budget
No burden of government spending

Focus
Public systems to focus on other prominent areas

Independent
Not dependent on government revenues

* Private health care is too expensive * For-profit philosophy may distort the objective * Rural areas may be neglected * Inequality - It will be a bigger burden for those on * Health Care is a Merit Good people fail to
realize
low incomes to take out health care insurance private profits

* Adam Smith that all human beings are motivated by

Disadvantages
Expensive

For-profit philosophy
Inequality Government intervention being a Merit-good Rural areas may be neglected

* It calls for a managed healthcare approach * Wait time * Bureaucratic delay * Competency * Quality / efficiency

where the role of the government is reduced from a provider to that of a manager

Time not ripe yet

Lack of insurance coverage BPL/Poor population

* Governments investment in public healthcare

infrastructure coupled with not-for-profit but professionally competent management team

* In Indian context time is not ripe yet for full fledged privatization * Countries with public health care may still allow private health care * PPP to extend health care * Private healthcare needs to be more carefully regulated to ensure that
it achieves standards providers to operate to serve consumers willing to pay more for faster access to more thorough services and treatment.

* Health Insurance

to ensure quality