ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Cost of HealthcareSubscribe to Cost of Healthcare

Cost-effectiveness Threshold and Health Opportunity Cost

With the setting up of the health technology assessment board, evidence from cost-effectiveness analysis will play an important role in decision-making. This raises the fundamental question: How much extra cost per unit of health gained is considered cost-effective? Various approaches for assessing the appropriate cost-effectiveness threshold for India are discussed. A robustly determined opportunity cost of healthcare spending should serve as a proxy for setting up a CET, and it should be used to advocate for greater resources towards achieving universal health coverage.

Health Insurance, Health Access and Financial Risk Protection

Drawing from the 60th and 68th rounds of National Sample Survey Office, this study evaluates the impact of different (social, commercial and target-oriented) health insurance schemes on access to healthcare use, and cost of care and financing of medical expenses. The results show that though these schemes promote access to healthcare, they also increase the costs manifold. The commercial insurers have not been effective at pooling financial risks and seem to be indulging in maximising individual gain. Given the intrinsic market-failure and information asymmetry between the principal and the agents and difficulties in regulating the insurance-base system, this study advocates financing healthcare through a tax-based system which can be cost-effective for achieving universal healthcare access in India.

Falling Sick, Paying the Price

The decennial National Sample Survey on health and education provides useful information on the health and education of the population. The summary report on health from the 71st round conducted in 2014 allows us to make an initial assessment of three sets of issues. One, the trends in morbidity rates and patterns of morbidity, two, the effectiveness of the public sector in ensuring access to healthcare, and three, the cost of healthcare across public and private sectors.

Improving Healthcare Services at Reduced Prices

The key to improving the quality of healthcare services in India and reducing costs at the same time can be found by enacting legislation which lays down minimum standards of patient care. In the absence of such standards and the reluctance of health insurance companies to standardise either price or quality, healthcare services continue to be expensive and of doubtful quality. Developing standards of patient care by legislative mandate and a change in the attitude of health insurers can change the equation in favour of the patient who is now at the mercy of the hospital.
Back to Top