Private Sector Health Infrastructure

Private Sector is also involved in developing health infrastructure in India on a large scale

Example - There are many privately run hospitals, clinics, nursing homes across India


Important Points

  • More than 70% of Hospitals run by Private Sector
  • 2/5 of Hospital beds are in Private Sector
  • 80% of Outpatients (OPD) are managed by Private Sector
  • 46% of Inpatients are managed in Private Sector
  • Private Sector are actively involved in Education and Training of Medicine Professionals, Medical Research, Sale of Pharmaceuticals etc
  • Many super specialty hospitals have been developed in India after liberalization.
  • These provide Medical tourism to India

What is Medical Tourism?

Many people from outside country are coming into India for their medical treatment

This is called Medical Tourism


India has latest medical technologies and trained doctors

Cost is much less as compared to developed counties like USA


Benefits to India

  • It leads to increase in foreign exchange for India
  • Around 2 lakhs foreigners visited India for Medical treatment
  • India is expected to earn around Rs500 billion through medical tourism




Other Books

Question 1

India has emerged as a hotspot for medical tourism'.

Defend the statement with vaild arguments.

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Question 2

Discuss the role of private sector in providing health services in India.

View Answer


Private SectorPrivate Sector Health Infrastructure Private Hospitals Private Clinics Health Infrastructure They run Private Run hospitals clinics, Nursing Homes Present Mostly in Cities They cover 70% of hospitals 2/5 of Hospital beds 80% of OPD 46% of Inpatient They provide Medical Tourism Public Sector Health Infrastructure AIIMS PHC They run Govt run hospitals and health Centers Present in both Cities and Villages They cover 30% of hospitals 3/5 of Hospital beds 20% of OPD 54% of Inpatient They normally treat Indian Patients Example 1 -Medical Tourism USA Patient to undergo Surgery Cost in USA Cost in India $ 10000 Rs 150000 ($ 2000) + $1000 Travelling Cost This is Expensive This is Cheaper Example 2 -Medical Tourism Afghanistan Patient to undergo Surgery Treatment in Afghanistan Treatment in India Not Available (Lack of latest equipment) (Not many Qualified Doctors) Available Reasonable Rates Good Medical Infrastructure This is not an option So Afghan Patient comes to India for treatment What is Medical Tourism Many foreign patients are coming to India for medical treatment This is called Medical Tourism Foreign Patient Treatment Indian Hospital Benefits Savings in Cost Qualified Doctors Good Health Infrastructure Benefits Increase in Revenue of Hospitals Increase in Foreign Exchange to India Boost Local Economy (Stay and Travel Cost of Tourism and Attendant)

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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo