Health Policy and Planning; 8(1): 43-56
© 1993
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The private/public mix in health care in India
Associate Professor and Chairman, Accounting and Finance, Indian institute of Management
Correspondence: Ramesh Bhat, Associate Professor and Chairman, Indian Institute of Management, Finance and Accounting, Vastrapur, Ahmedabad 380 015, India.
Private hospitals and private medical practitioners play a significant part in delivering health care services in India. As the demand for health care has increased, institutions in this sector have expanded widely in both urban and rural areas. The relationship between patient and private practitioner considerably influences the perceived and actual needs about health care. This relationship is expected to play an important role in the control of disease patterns and management. However, the developments in this sector have prompted concern about the efficiency of resources, equity and access to facilities, and the availability of financing mechanisms to support private health care. Also, the efficiency with which the resources are used in this sector has direct bearing on the cost and quality of services. The existence of these health care institutions therefore has profound implications for the present character of the Indian health care system, and its future course.
The objectives of the present study are to review the role of the private health care sector in India and the policy concerns it engenders. The discussion suggests that policy makers in India should take serious note of the growing influence of the private sector in providing health care in India. Policy interventions in health should not ignore their existence and this sector should be explicitly involved in the health management process. It is argued that regulatory and supportive policy interventions are inevitable to promote this sector's viable and appropriate development.
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