India's total health expenditure for financial year 2023-24 is estimated to be around Rs 9.52 lakh crore, which is nearly 3.29% of the country's gross domestic product and Rs 6,801 per capita, according to National Health Accounts Estimates for India report released by Ministry of Health and Family Welfare. This expense constitutes current and capital expenditure incurred by both government and private sources.
Here's a look at how India's healthcare expenditure is distributed across househilds, hospitals, pharmacies and other healthcare services -
Of the country's total healthcare expenditure of Rs 9.52 lakh crore, a staggering Rs 4.06 lakh crore is borne by households. Households' Out-of-pocket Expenditure on health (OOPE) is Rs 4.06 lakh crore, consituting 42.66% of the total health expenditure, 1.4% of GDP and Rs 2,901 per capita. OOPE highlights the amount that families pay out of their own savings or income when they use healthcare services such as doctor visits, medicines, lab tests, or hospital stays without help from the government or health insurance.
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In terms of insurance, private health Insurance expenditure remained around Rs 97,167 crore, 10.2% of total health cost. Expenditure by all Government-Financed Health Insurance Schemes combined is around Rs 33,385 crore.
Government health expenditure, including capital expenditure, is Rs 4.14 lakh crore, around 43.5 % of expenditure, 1.43% of GDP, and Rs 2,959 per capita. This cost is slightly more than what households spend on healthcare. Of this, the Union government's share is about 32%, while the share of state governments is estimated to be around 68%. This amounts to about 4.83% of General Government Expenditure in 2023-24.
Among hospitals, private insitutions account for the largest share at Rs 2.67 lakh crore, or 31.91%, followed by pharmacies at Rs 1.72 lakh crore (20.60%) and government hospitals at Rs 1.40 crore (16.77%).
Other government healthcare providers, including primary health centres , dispensaries and family planning centres, account for Rs 77,501 crore Providers of preventive care account for Rs 42,082 crore, while other private providers, including private clinics, account for Rs 33,092 crore.
Medical and diagnostic laboratories account for Rs 29,289 crore, while patient transport and emergency rescue services account for Rs 28,839 crore. Health system administration and financing accounts for Rs 31,983 crore. The remaining expenditure is attributed to other healthcare providers not classified elsewhere at Rs 9,259 crore and other retailers at Rs 5,054 crore.
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