Privatisation of Health Sector

There are three main elements of health care: prevention, treatment and rehabilitation. However, the state infrastructure is unable to meet these three elements productively. This calls for dire engagement of the private players in the healthcare sector.

What makes entry of private players in the health sector important?

It is an accepted fact that the government is unable to cope with demand of the healthcare services. The government is unable to provide comprehensive quality healthcare. Infrastructural bottlenecks in public system have made the State and Central Governments to invite private players to deliver critical healthcare. There is a big opportunity for private healthcare to fill up this gap.

The private sectors have the potential to contribute to the health industry as they can get the financial aid from bankers, venture capitalists, pharmaceuticals, business houses, etc.

Healthcare no longer is restricted to providing just health service but it has evolved into a competitive, performance –driven industry, which demands the best management skills related to manpower, technology and finance. To provide this qualitative healthcare, it becomes important for the entry of private players which are blessed with funds.

Tatas, Apollo, Wockhardt, Escorts, Max India, Fortis, Piramal, Ispat, Duncan, Escorts etc. have been the major contributors in India in athe arena of private healthcare.

It is to be observed that with the advent of Managed Care Systems in the form of Preferred Provider Organization (PPO), which will transform into Health Maintenance Organization (HMO) in long run, the private health care industry is now poised to undergo a drastic change. This will encourage private health care entrepreneurs to promote India as a Regional Health Care Hub.

What has the private sector got to offer?

The private health care sector has its own pros and cons. On the pros side it has Individualised care and better nursing and allied services. However, there is also the flip side to it. Some of them are listed below:

• Privatisation leads to steep hike in health expenditures, attributable to the increased costs of medical consultations, drugs and devices, medical tests and hospitalisation.
• Also, because of the pressure to make a profit, many private doctors, hospitals and diagnostic centres promote uncalled-for investigations and treatment in order to recover their initial investment.
• Privatisation has also encouraged unhealthy competition among the groups involved, since the objective is not only to earn, but to earn more than others.
• Privatisation leads to the relative neglect of problems from which there is little to earn.

Way forward

In order to live up to the vision to provide universal health coverage i.e. ensure universal access to quality healthcare, there is a pertinent need for engagement of private players in this sector.  There is definitely the need of the hour for stronger partnership between the public and private sector to achieve the Sustainable Development Goals (SDGs) in order to ensure healthy lives and promote wellbeing for all by 2030.

Privatisation has undoubtedly improved the quality of health care, and widened its scope and availability. Private sector will continue to flourish, since they provide curative and rehabilitative services that the state does not provide. However, privatisation has resulted in a number of problems which are alien to Indian society. Promoting health care merely as a consumer service and product is both unhealthy and risky. Therefore, the ball lies in the court of the government of the day to take remedial steps to curb the ill effects of private sector.