Demand for healthcare in India

In a developing country like India, allocation of scarce fiscal resources has to be based on a clear understanding of how investments in the heath sector are going to affect demand. Three aspects like overall healthcare demand, consumer decisions to use public and/or private care and role of price/q...

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Main Author: Brijesh C. Purohit
Format: Article
Language:English
Published: PAGEPress Publications 2013-03-01
Series:Healthcare in Low-resource Settings
Subjects:
Online Access:http://www.pagepressjournals.org/index.php/hls/article/view/729
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author Brijesh C. Purohit
author_facet Brijesh C. Purohit
author_sort Brijesh C. Purohit
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description In a developing country like India, allocation of scarce fiscal resources has to be based on a clear understanding of how investments in the heath sector are going to affect demand. Three aspects like overall healthcare demand, consumer decisions to use public and/or private care and role of price/quality influencing poor/rich consumer’s decisions are critical to assessing the equity implications of alternative policies. Our paper addresses these aspects through examining the pattern of healthcare demand in India. Data from the National Family Health Survey are used to model the healthcare choices that individuals make. We consider what these behavioral characteristics imply for public policy. This analysis aims to study disparities between rural and urban areas from all throughout India to five Indian states representing three levels of per capita incomes (all-India average, rich and poor). Results evidence that healthcare demand both in rural and urban areas is a commodity emerging as an essential need. Choices between public or private provider are guided by income and quality variables mainly with regard to public healthcare denoting thus a situation of very limited alternatives in terms of availing private providers. These results emphasize that existing public healthcare facilities do not serve the objective of providing care to the poor in a satisfactory manner in rural areas. Thus, any financing strategy to improve health system and reduce disparities across rich-poor states and rural-urban areas should also take into account not only overcoming inadequacy but also inefficiency in allocation and utilization of healthcare inputs.
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spelling doaj.art-3fc89122c19d4eabb33d79f1e6261eb52024-04-03T17:28:46ZengPAGEPress PublicationsHealthcare in Low-resource Settings2281-78242013-03-0111e7e710.4081/hls.2013.e7969Demand for healthcare in IndiaBrijesh C. Purohit0Madras School of Economics, Chennai, TamilnaduIn a developing country like India, allocation of scarce fiscal resources has to be based on a clear understanding of how investments in the heath sector are going to affect demand. Three aspects like overall healthcare demand, consumer decisions to use public and/or private care and role of price/quality influencing poor/rich consumer’s decisions are critical to assessing the equity implications of alternative policies. Our paper addresses these aspects through examining the pattern of healthcare demand in India. Data from the National Family Health Survey are used to model the healthcare choices that individuals make. We consider what these behavioral characteristics imply for public policy. This analysis aims to study disparities between rural and urban areas from all throughout India to five Indian states representing three levels of per capita incomes (all-India average, rich and poor). Results evidence that healthcare demand both in rural and urban areas is a commodity emerging as an essential need. Choices between public or private provider are guided by income and quality variables mainly with regard to public healthcare denoting thus a situation of very limited alternatives in terms of availing private providers. These results emphasize that existing public healthcare facilities do not serve the objective of providing care to the poor in a satisfactory manner in rural areas. Thus, any financing strategy to improve health system and reduce disparities across rich-poor states and rural-urban areas should also take into account not only overcoming inadequacy but also inefficiency in allocation and utilization of healthcare inputs.http://www.pagepressjournals.org/index.php/hls/article/view/729HeaIthcare, health policy, inequity, Indian states
spellingShingle Brijesh C. Purohit
Demand for healthcare in India
Healthcare in Low-resource Settings
HeaIthcare, health policy, inequity, Indian states
title Demand for healthcare in India
title_full Demand for healthcare in India
title_fullStr Demand for healthcare in India
title_full_unstemmed Demand for healthcare in India
title_short Demand for healthcare in India
title_sort demand for healthcare in india
topic HeaIthcare, health policy, inequity, Indian states
url http://www.pagepressjournals.org/index.php/hls/article/view/729
work_keys_str_mv AT brijeshcpurohit demandforhealthcareinindia