Why does hospital treatment cost more in Telangana compared to several other States? A Parliamentary Standing Committee has pointed to the growing role of private healthcare, alongside gaps in public hospitals, as one of the factors behind the State’s high treatment expenditure.
The committee also cautioned against interpreting lower healthcare expenditure as evidence of better or more affordable healthcare. The committee’s observations point to the expanding private healthcare sector as one of the factors behind the higher cost of treatment in southern States, including Telangana. The public-private divide becomes particularly stark when the cost of a hospitalisation episode is compared nationally. The committee identified deficiencies in public healthcare infrastructure, shortages of medical personnel and overcrowding as factors that can drive patients towards private hospitals. It has recommended increasing bed capacity and specialist manpower in government hospitals, particularly in high-demand metropolitan centres. Hyderabad-based Ranga Reddy Burri, president of the Infection Control Academy of India, argued that the traditional family physician and referral system had virtually collapsed, resulting in patients approaching specialists directly even for relatively minor ailments.
It has also called for essential medicines, diagnostic services and modern amenities to be made available in public facilities so that patients do not have to turn to private hospitals simply to access basic or specialised care. An average hospitalisation in a government hospital costs ₹6,631, while the corresponding cost in a private hospital is ₹50,508, according to the report.
“Lower spending could also reflect poor access to medical facilities, lower utilisation of healthcare services or people being forced to opt for cheaper treatment because they cannot afford more expensive care,” it said. “Private hospital treatment can be five to 10 times more expensive than treatment in government facilities, with the difference becoming particularly significant in the case of serious illnesses such as cancer, heart disease and kidney failure,” the report said.
