Recently, NITI Aayog has released a comprehensive study on the not-for-profit hospital model in the country to close the information gap on such institutions existing in the country.
Background and Need of the Study
- India’s healthcare policies and programmes aims to achieve Universal Health Coverage by 2030, but India has ever increasing need for healthcare services.
- Only Government run health services cannot fulfil this need. Private sector plays a significant role to fill the gap but it also fails to provide affordable care to large population, while ensuring its own sustenance and efficiency.
- The “Not-for-Profit” hospital sector utilizes the resources and grants provided to them by government to provide cost effective healthcare to the population without being overly concerned about profits.
- However, this sector remains largely understudies.
Major Findings of the Report
- Not-for-profit hospital account for only 1.1% of treated ailment as of June 2018.
- For-profit hospital account for 55.3% of in-patients, while the not-for-profit hospitals account for only 2.7% of in-patients in the country.
- In not-for-profit hospital OPD cost is one-third lesser than in private hospitals.
- Most of not-for-profit hospitals are empaneled with state or central government healthcare schemes.
- They have lower operating costs as compared to for-profit hospitals.
- Strong focus on Quality care across all categories of not-for-profit hospitals, as most of them had some form of accreditation for the services.
Challenges faced by Not-for-Profit Hospital
Policy Intervention Suggested for Not-for-Profit hospitals
- Various short term and long term like – developing criterion for identifying and ranking them on their performance; promoting top hospitals.
- Posting government medical college students in these hospitals for their internship; incentivizing superspecialist to work here.
- Tax exemptions, Grant-in Aids, Timely allocation of lands.
- India has a huge population with ever growing health needs but resources in government sectors are limited.
- Private health sector will not be able to provide quality healthcare at affordable cost to majority of population.
- Strengthening Not-for-Profit hospital can fulfil the huge gaps in India’s affordable healthcare system.