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Health spending Analysis (Relevant for GS Mains)

Analysis of Health spending by a survey
1.  Bulk of the total public money spent in State-level healthcare system is not spent on medical services, but goes to wages and salaries of human resource, reveals a study of health accounts of six States.
Wages and salaries account for 86 per cent of the total public expenditure in Punjab, 72 per cent in Maharashtra, 65 per cent in Kerala, 52.5 per cent in Madhya Pradesh and 35 per cent in Odisha.

2.  The per capita ‘total cost of care’ — which includes money spent by patients as well as that spent by the government on paying salaries to staff, for health subsidy etc — is mostly cheaper in the public sector than in the private sector.

3.  Another finding has important implications for public health policy: in all States studied, the total cost of an inpatient episode — which involves hospitalisation — is much higher in private sector compared to public sector. 

4.  The bulk of the total money circulating in Indian healthcare (69 per cent) comes from Out Of Pocket (OOP) payment by households. The OOP is the money which individuals pay outof their own.
 



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