Contact Us - 0532-246-5524,25 | 9335140296
Email -

Post at: Jul 22 2021

Not-for-Profit Hospital Model in India

Recent Context
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.

Kameshwar Shukla

List view
Grid view

Current News List