NITI Aayog: Study on ‘Not-for-Profit’ hospital model

June 30, 2021

NITI Aayog released a comprehensive study on not-for-profit hospital model in India on June 29, 2020.

Highlights

According to NITI Aayog, it is a step of closing information gap on such institutions.
This study was conducted in the backdrop of low investment in expansion of health sector in private sector.
Report provides insight into operation model of not-for-profit hospitals.

Findings of report

NITI Aayog highlights the growing disparity between hospitalisation cases in for-profit and not-for-profit hospitals.
As per report, not-for-profit hospitals account for 1.1% of treated ailments, as of June 2018.
for-profit hospitals account for 55.3% of in-patients. On the other hand, not-for-profit hospitals account for 2.7% of in-patients in India.
Cumulative cost of care at not-for-profit hospitals is lower than for-profit hospitals by one-fourth with respect to in-patient department.
This low cost is reckoned by package component of cost, which is about 20% low.
Doctor’s or surgeon’s charges are 36% lower while bed charges, which are approximately 44% lesser than for-profit hospitals.
Cumulative cost of OPD care across not-for-profit hospitals is about one-third lower than in private for-profit hospitals.

NSS 75th round data

According to this data, not-for-profit hospitals provide medicines to patients at 26% lesser than for-profit hospitals. It also highlights, doctor’s fees are about 18% lesser in not-for-profit hospitals.

Way Forward

NITI Aayog calls to strengthen not-for-profit hospitals by giving 100% income tax exemption for donations, fast release of dues from government schemes and grants. Not-for-profit hospitals be allowed to utilize primary health care (PHC) infrastructure to take health care in rural India.

« Previous Post Next Post »