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Timbuk 2
Timbuk 2
Compared to nations such as EU and Japan where major spending in healthcare sector comes from
the government India is an exception here in so far that it has one of the highest private spending on
healthcare. With a significant proportion of the Indian population still below the poverty line public
facilities are largely to cater to this segment however in the urban and sub-urban areas private
healthcare facilities are preferred. With rising income levels and exposure to international standards/
quality has raised the demand for quality private healthcare facilities.
The private health sector consists of the 'not-for-profit' and the 'for-profit' health sectors. The not-forprofit health sector includes various health services provided by Non Government Organizations
(NGO's), charitable institutions, missions, trusts, etc. Health care in the for-profit health sector
consists of various types of practitioners and institutions. The licensed practitioners range from
general practitioners (GPs) to the super specialists, various types of consultants, nurses and
paramedics, licentiates, and rural medical practitioners (RMPs).The out-of pocket spending on
healthcare by Indians is one of the highest, constituting 94% of the total spending in the private
health industry. Out of pocket is the direct outlay of households, including gratuities and payments in
kind, made to health practitioners and suppliers of pharmaceuticals and other goods and services,
intended is to contribute to the restoration or to the enhancement of the health status of individuals
or population groups. According to estimates an average household contributes 4 -6% of its
household income to healthcare with close to 80% going to the private sector. The advantage to the
private sector comes from little government interference and