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Health Care Industry In India

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Health Care Industry In India A Paper Highlighting the Present Scenario and a Possible strategy to make the sector attractive Submitted by: - Rahul Raizada Email id: - Rraizada@gmail.com Contact Address: B-18 Qutub Institutional Area New Delhi -16 FORE School of Management Table of Contents I. Introduction 4 II. Private Health Care Facilities and Providers 4 A. Government Policy 5 III. Utilization of Private Health Care Facilities 5 IV. The Cost of Private Health Care 6 A. Expenditure 6 B. Financing 6 V. Policy Concerns 6 VI. Regulating the Private Health Care in India 8 A. Current Regulations 8 B. Assessment of Regulation 9 VII. The Challenges Ahead and A Possible Strategy 9 A. Health Infrastructure in Public Sector 9 B. Financing related Issues 10 C. Shape of Private Sector in Medicine 11 D. Regulatory Issues 12 1. Consumer Protection Act (COPRA) 12 2. Medical Council of India and State medical Councils (SMCs) 13 3. The Nursing Homes Act 13 VIII. References 14 List of Tables Table 1: Typology of Regulations 6 Glossary NHP National Health Policy O&M Operation and Maintenance PHC Public Healthcare Centers CHC Central healthcare Centers GDP Gross Domestic Product NGO Non Government Organization COPRA Consumer Protection Act I. Introduction The private sector plays an important role in India's health care delivery system. Through a wide network of health care facilities, this sector caters to the needs of both urban and rural populations and has expanded widely to meet increasing demands. Utilization patterns indicate that health care seekers depend highly on the private sector. Despite the widespread public infrastructure, a higher proportion of health services are provided by the private sector than by government facilities. The private health care sector has grown significantly over time. The growth of this sector has been further triggered by a number of factors, including a liberalized economic policy, rapid influx of medical technology, growing deficits of public sector hospitals, and a rising middle income class. ...read more.


Act Declaration of Geneva Facilities (including Technology, Manpower) Related Nursing Home Act Nurses, Midwives and Health Visitors Act Public Nuisance Act Minimum Wage Act Bureau of Indian Standards B. Assessment of Regulation The laws pertaining to health care in India are effective in protecting the interests of the patients; but the main area of concern is about their proper enforcement. Some reasons, which could be attributed for these regulations and policy have remained a problem: - i. The implementation and enforcement of rules and regulations have been weak. ii. Since health is a state subject in India, the response to different laws has varied from state to state (e.g., case of Nursing Home Act). iii. There has been considerable amount of resistance from various constituents of the private health care sector (particularly private providers) to accept in principle the applicability of certain regulation to their profession (e.g., Consumer Protection Act). iv. The response of the medical profession to develop rules, norms and various mechanisms for self-regulation has been poor (e.g., Medical Council Act). v. Many regulations have not been updated and, therefore, have lost their relevance (e.g., Nursing Home Act). vi. The ministries of health and other departments do not consider concerns related to private sector growth as a high priority on the policy agenda. With the new economic policy regime, it has become fashionable to say that the markets will take care of these concerns. VII. The Challenges Ahead and A Possible Strategy A. Health Infrastructure in Public Sector Issues in regard to public and private health infrastructure are different and both of them need attention but in different ways. Rural public infrastructure must remain in mainstay for wider access to health care for all without imposing undue burden on them. Side by side the existing set of public hospitals at district and sub-district levels must be supported by good management and with adequate funding and user fees and out contracting services, all as part of a functioning referral net work. ...read more.


iii. Most of the doctors feel that the absence of medical professionals on the panel of councils is one major drawback of the COPRA. It was pointed out that the providers in the health sector were not involved in the process of enacting COPRA until late in its development. It is argued that non-medical people serve judgment when they are not qualified to make an accurate assessment about medical evidence. It is suggested that medical people be better represented, especially in medical negligence cases. iv. There should be an orientation program for newly graduated doctors who want to start private practice. 2. Medical Council of India and State medical Councils (SMCs) The character of medical care in India has changed drastically and these changes present many challenges. These challenges need to be addressed by the MCI. In order to do so, however, the basic structure and financing of the MCI has to be strengthened to make it an effective organization. The role of the MCI and SMCs as regulators has been less than impressive in India. They have failed to regulate the medical profession and to set adequate standards to safeguard the interest of patients, particularly in the area of medical practice. As first step, the role of regulating education should be separated from the role of regulating practice. This would require a separate commission to establish adequate standards and ensure the implementation of basic minimum standards. 3. The Nursing Homes Act The NHAs do not specify minimum standards for nursing homes should uphold. Since legislation such as the Nursing Home Act does not normally specify the standards, the medical associations or the Medical Council of India could do this. The standard setting agency should then be empowered to implement those standards. The process of registration and renewal should be tightened and should be strictly implemented. The local supervising authorities should be made responsible for registration and renewal of registration. The Ministry of Health in India should take a broad view of the regulation of Nursing Homes in India and should lay down basic policy guidelines for all states. VIII. ...read more.

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