NITI Aayog publishes study on ‘not-for-profit’ hospital model


NITI Aayog on Tuesday released a comprehensive study of the nonprofit hospital model in the country and called it a step towards reducing the lack of information about these institutions.

Niti Aayog (Health) member VK Paul said investments in expanding the health sector in the private sector were relatively low and that recent stimulus measures announced by the government provide the country with an opportunity to change this. situation.

“There has been relatively little investment in expanding the health sector into the private sector. The relaunch announced yesterday offers us the opportunity to change this situation. The non-profit sector report is a small step in that direction, ”said Dr Paul.

According to an official statement, the report provides an overview of the operating model of nonprofit hospitals.

According to Niti Aayog’s report, non-profit hospitals only accounted for 1.1% of conditions treated in June 2018.

The report further found that for-profit hospitals account for 55.3% of inpatients, while non-profit hospitals only represent 2.7% of inpatients in the country.

“The cumulative cost of care in not-for-profit hospitals is about a quarter lower than that in for-profit hospitals in the inpatient department. This is calculated by the lump sum component of the cost, which is approximately 20% lower, the doctor or surgeon fees, which are approximately 36% lower and the main aspect being the bed costs, which are approximately 44% lower than the cost of the bed. those in for-profit hospitals, ”the report adds.

The cumulative cost of OPD care in not-for-profit hospitals is about a third lower than in private for-profit hospitals. Data from the 75th cycle of the NSS found that nonprofit hospitals provide drugs to patients about 26% less than for-profit hospitals, while physician fees are about 18% lower in nonprofit hospitals. lucrative.

In addition, the government think tank also proposed short and long term policy interventions, such as a 100% exemption of donations under section 80G, developing criteria to identify these hospitals, creation of a portal / directory at national level of these hospitals, ranking them by a performance index and promotion of the best hospitals for the practice of philanthropy, among others.

He said the Center may consider providing working capital loans with lower interest rates, which would be more financially viable for nonprofit hospitals and help with insufficient cash flow when needed.

He also stressed the need to use the expertise of these hospitals in the management of human resources with limited financial means in remote areas.

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