Healthcare delivery in India - effects of Public policy, IT and Insurance
Bhavik Kaul 1 Gaurav Dalvi 2
Great Lakes Institute of Management, Chennai
The global healthcare industry has greatly transformed itself into a professional service system, wherein each stakeholder has to justify its performance. In the increasingly globalized market, private healthcare providers have started dominating the supply side. Healthcare sector in India needs to be reoriented globally towards excellent service promotions and healthcare be made available at lower cost.
With this view we plan to study the impact of various factors on the quality of healthcare delivery in India ...view middle of the document...
Alma-Ata Declaration (1978) states that attaining health for all as a part of overall development starts with primary health care based on “acceptable methods of technology made universally accessible to individuals and families in the community through their full participation and at a cost that the community and their country can afford”.
To energize the process of policy implementation E.S. Krishnamoorthy (2009) suggests that people should make healthcare as an issue that would win or lose elections. Health financing is a key determinant of health system performance in terms of equity, efficiency, and quality. It encompasses resource mobilization, allocation, and distribution at all levels (national to local), including how providers are paid – Schieber and Akiko (1997).
Although India’s healthcare system has gradually improved in the last few decades, it continues to lag due to lack of government funding on healthcare initiatives, as estimates reveal that the per capita spending on healthcare by the Indian Government is far below international recommendations. “If Columbia and Thailand, under condition of high or low economic growth, could ensure such spending following amendments to the constitution, then similar approach could well be a solution for India with its rapid economic growth” so avows Narayana (2008).
Using tax legislation to provide equitable healthcare support is complicated as the larger tax resources are controlled by the central government but the major responsibility for healthcare spending is bestowed on the states. Until healthcare is converted into a central subject, from its current position as a state subject this issue will persist (Healthcare in India, 2009).
With increasing commercialization of health care, the access of ordinary people to healthcare has become more difficult. The weakening of the public health system has left the country very poorly equipped to handle public & national health emergencies. A comprehensive National Health Policy which ensures availability, access, affordability and equity in delivering health services to meet the community needs efficiently and effectively is the need of the hour. Through this research we will attempt to study the strategic issues involved in framing such a policy.
b. Hypothesis 2: Lower percentage of healthcare insurance penetration in the country has a negative impact on the quality of healthcare delivery
According to the WHO, “Each year, approximately 150 million people experience financial catastrophe, meaning they are obliged to spend on health care more than 40% of the income available to them after meeting their basic needs.” (WHO Factsheet N°320, 2007)
High medical expenses due to short term health shocks coupled with low per capita income typically lead to debt, sale of assets, and long-term poverty. Theory suggests that by covering the cost of care after a health shock, insurance can help to smooth consumption, reduce asset sales and new...