Prime Highlights:
- A new study warns that rising healthcare costs, especially in private hospitals, are hitting families hard and calls for increased public healthcare spending.
- Experts say stronger government funding can make healthcare more affordable, improve access, and support innovation in medical treatments.
Key Facts:
- The study found that income growth, urbanisation, education, inflation, and life expectancy significantly influence total healthcare spending and out-of-pocket expenses for families.
- India’s health system depends on both public funding and private payments, which contribute to inequality in access to care.
Background:
A study urges India to increase public healthcare spending as rising costs strain families using private care.
The study Impact of Determinants of Healthcare Expenditure in India: The ARDL Bounds Testing Approach finds that income, city growth, education, inflation, and life expectancy have a big impact on total healthcare costs and what families pay themselves.
India’s development is driving up healthcare costs, particularly in private hospitals. The study also highlights that India’s health system relies on both public funding and private payments. Limited public funding combined with high private payments increases inequality, leaving rural and lower-income families at greater risk of huge medical bills or delayed treatment. Without stronger public funding, the financial burden of illness continues to fall on those least able to afford it.
Healthcare experts say changes are needed in the system. Amit Mookim, CEO of Immuneel Therapeutics, said the Union Budget 2026-27 could help make healthcare more affordable and accessible while supporting medical innovation. He added that investing in public health can boost India’s role in developing advanced therapies like cell and gene treatments.
Experts say the findings provide empirical support for long-standing demands to expand public healthcare funding, highlighting that strategic policy changes could reduce financial stress on families and improve equity in healthcare access.
