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‘Out of Pocket Expenditure’ of Health Care Services in India: Factors, Consequences and Solution

shatabdi bagchi, Priyanka Bakhshi


Financing is the most crucial part of the of the health care service delivery system and health care finance is one of the most critical factor contributing in the poverty scenario of any country.  In developing countries like India where the health system should be more equitable and cost effective, the soaring problem of ‘out of pocket expenditure’ on Health System has shown a gloomy face and raises question on health equity. Evidences from several studies In India show that out of pocket expenditures on health care services intensify poverty.  In the World Health Survey of 2011, India was ranked 42nd in the list of countries with highest average of out of pocket expenditure. The survey found that 74.4 per cent of private expenditure on health was paid out of pocket. The article discusses the triggering factors which lead to the inequitable out of pocket health expenditure. Secondary Data from World Health Statistics 2010, NSSO 52nd and 60th round have been used here as evidence.

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