Commercialization of Health Care: Good or Bad?

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119 comments Page 1 of 12.

Anonymous said:   1 decade ago
Following the large scale macroeconomic reforms introduced in many countries since the 1990s, there has been a shift in the provisions of public goods, including health and education. Certain Asian and Latin American countries have opened up the medical care market for privatization and introduced the concept of user fees in public health services. The concept of segmented medical care was given in the World Development Report itself- offering private, market-oriented better quality care for the rich. By comparison, the public health facilities look woefully inadequate. They were widely criticized, and the government expenditure on health declined sharply.

This change in the healthcare sector where private players have started treating it as a flourishing business is premised on the view that the public sector is unable to act as a sole provider of those services within the backdrop of shortage of resources. Even when there is no recession, the capital need to be deployed in several other sectors mainly industry, agriculture and infrastructure so that health care falls short of funds. It is now being realised that greater competition is the only option for better quality services and improvement in the overall efficiency of these services.

The advocates of reform hold that the state should undertake only minimal interventions in the economy, and for health service it should provide only the essential service. This view totally overlooks the issue of incompatibility between public welfare and private provision. More importantly, this approach does not address the problems of poverty, inequality among social classes, religious groups and gender aspects. The poor and socially backward classes depend on public provision of health care almost entirely.

The system of health care as it is present in most of the developing countries is that while the poor would go for the public care for essential clinical services, the rich would prefer high-tech private medical care. Consequently, consumer choices of health services remain restricted to only those who can afford to pay for services in highly expensive private hospitals and clinics. The 'willingness to pay' is often equated with 'ability to pay'. But some studies have shown that in some family's highly expensive treatment of serious diseases like heart ailments, cancer, nervous system disorders have lead to erosion of family assets, high indebtedness. Some families have known to resort to inadequate diet, drop out of school children, especially girls.

This is known as medical poverty trap. This takes place so often and in every region of our country that we have no reason to accept that the government should provide only the essential clinical services. They need medical care against diseases like respiratory infections, renal problems, intestinal disorders, vitamin deficiencies, arsenic poisoning, fatal accidents, mental disorders, etc. Under gross economic equalities, the application of market system and sticking to the segmentation of health services will pass on the benefit only to the rich.

In India the post-reform era shows a gross neglect of the health scenario. Investment in health sector yields only long-term gains which seem to be at odds with short term political gains which our politicians always tend to seek. Under the Structural Adjustment Programme funded by IMF-World Bank, the government's share in total health has not shown a commensurate rise with the increase in population. Due to poor access and quality of service, the rate of utilization of public facilities has in fact shown a decline over the years as per report of the National Sample Survey Organisation. It has also been observed that whatever public facilities are available they are utilized more by the rich sections.

The share of richest 20 per cent for inpatient bed days is about 6 times more than that of the poor. In monetary terms, less than 10.2 per cent of total government investment on health service goes to the poor and to 31 per cent to the richest by comparison. It is clear that the poor spend disproportionately higher per cent of their incomes on health service.

More than 30 per cent of their income goes for treatment for minor ailments, infections and communicable diseases. The neglect of preventive health care in public health policy is the chief cause of this situation. Out of the total government expenditure, only 13 per cent is spent on primary care, 25 per cent on public health research and a hopping 60 per cent for the secondary and tertiary health care. Due to this, 55 per cent of rural primary care is sought from the private practitioners, of whom many are unregistered and another about 24 per cent from private clinics or nursing home. In this backdrop, the issues of traditional medical systems and their usage appears to be of great importance in India.

Another unexpected trend needs to be mentioned. Although market-based reforms in health care are advocated in almost all the developing countries, the state continues to play a major role in the delivery of health care services in developed countries, especially in America, West Europe and Australia. However, the degree of commercialization of health care services as measured by the spending of the private individuals varies from country to country.

The results of commercialization of healthcare, considered generally, and not with specific reference to India have not been very encouraging. The observations made in this regard show that countries with better health outcomes, have significantly lower commercialization in health care services; better care at birth is associated with more of GDP spent by the government on health, but not with more private health spending to GDP; higher commercialization at primary health care is associated with greater exclusion of children from treatment when indisposed.

It is quite evident that the introduction of private competition and user charges in public health discriminates against the sick and the poor. The condition of health care system in all big and small cities in India shows that the poor have no or little access to health care facilities. The public hospitals are all full of patients; beds are not available wherever we go. The medicines are always short in government hospitals. The situation in remote areas of the country and most of the villages leaves much to be desired. On the other hand, the rich have access to the health care everywhere. In cities, private clinics, hospitals and diagnostic centres are in every part. They welcome patients who can afford expensive treatment.

Commercialisation of education is certainly against the policies of social equalities which India aims to bring. It has also led to many undesirable practices. Private clinics often subject the patients to conduct many tests which are not necessary. They admit patients who do not require admission. This is done to earn more money. Operations are performed at times when they are not required or are bad for the patient's health. However, some hospitals and clinics keep a strict code of conduct and do not adopt such unscrupulous practices. Their high charges are justified because of high cost of inputs.

The fact cannot be denied that the commercialization of health care has supplemented the public facilities in this regard. It has rather helped the government to maintain a high level of health care in the country. In all major and small cities and towns, private health centres are open day and night and are ready for any emergency. They are saving the lives of thousands every day. The private hospitals and clinics have provided employment to lakhs of doctors, nurses and other staff across the country. The government is earning huge revenue in the form of taxes.

These clinics, diagnostic and treatment centres have also created a huge demand for health care products, instruments and medicines. This industry has flourished to become the fourth largest health care industry in the world. The economy owes a lot to this commercialization. Today, India has a strong and sophisticated tertiary health sector where people from outside the country come for medical tourism. Given this situation, India can take advantage of its indigenous medical system to ensure cheap, accessible and capable medical care for her population, particularly the poor. India has many systems like Ayurveda, Unami, Siddha, etc. Which it has developed since the ages. These systems need to be expanded and exploited for improvement of general health of the people.
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S k s said:   1 decade ago
Commercialisation of health care has become an obvious trend today. The direct outcome of it has naturally been the increasing cost of healthcare incurred by people. Like any other matter this too has both merits and demerits.

The merits of this trend are,

1) Many choices have been available to the people now-a-days as regards check-ups by specialist healthcare providers, admission to and/or other facilities provided by hospitals, types of diagnostic tests to be carried out, methods of treatment, ranges of medicines and so on;.

2) Research and development of medical science has been tremendously booted up;.

3) Necessary investments required to achieve the aforesaid ends have been realised;.

4) Talents are being attracted to the various fields and sub-fields of the medical science;.

5) It has widely expanded the drug and healthcare industries ;.

6) It has thus contributed to the employment and economic growth in commendable manner.

However, the benefits of commercialisation of health care do coexist with many undesirable effects that are not at all beneficial to the public. They can be described as under,

1) Escalating costs of healthcare have rendered it too dear for the poor and the disadvantaged sections of the society;.

2) Continuous trend in this direction will cause healthcare to go beyond the reach of the common people;.

3) Too much greed for profit would create many a nefarious activities in the system so that the high morals of this field will get contaminated;.

4) Commercialisation will lead to patentification inventions of drugs and other medical facilities rendering it too costly and inimical to public interest;.

5) Health is a significant factor in private as well as public domains of life and is very crucial in formation of human and social capital of a country for its progress and prosperity, so unbridled commercialisation must be kept under control;.

6) Commercialisation does not necessarily ensure quality controls in healthcare, examples abound in this respect. So care must be taken to curb any such tendency.
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SHALIN said:   1 decade ago
Commercialization of health care is good in the context of India but there is a need of regulation on private hospitals. Positive points of commercialization.

1. Introduction of new technology - our private hospitals are so much technological advance that a lot of foreigners come here for their operations.

2. All the government hospitals are flooded with patients and if there were no private hospitals in India one cannot even dare to think about the condition of health system in India.

3. Availability of large no of technological advance ambulance which can increase the chances of survival of a patient.

There are various cons of commercialization of health system but these all can be eliminated with stricter regulation. Some areas where regulation is required are-.

1. Nowadays anyone can open a nursing home anywhere even in residential colonies, this increases the chances of medical waste being dumped in residential areas which is extremely dangerous.

2. Private hospitals are provided various incentives by the government like subsidized loans, tax exemption etc. , but instead of charging nominal fee for their services they charge so much that only rich people can afford them. This system of incentives should be immediately ended.

3. There is no price mechanism; any hospital can charge anything for their services as they want. There should be a pricing system which should be followed by all the hospitals.

4. Nowadays it is believed that due to commercialization profession of doctors have become the second most corrupt business after politics. In my opinion it is somewhat true also. Doctors today are lured by private hospitals and nursing homes for commissions on sending the patients to them for medical tests and surgeries. Even they are given commission by medical companies. Many a times they advice patients of irrelevant tests and put on unnecessary medication just only to fill their pockets. There is a great need in here for tighter regulation and bringing of doctors under the jurisdiction of states rather than MCI.
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Sathiesh said:   1 decade ago
Health Care is one crucial field where casualness or any sort of nonchalance attitude can by any chance be unaccepted. But, to the saddest part, the world we live today is poised with scars of corruption even in this sanctuary field.

Following are the problems if it is under the governmental control:.

1. Corruption (of course prominent in a country with EXPERTS).
2. Lethargic attitude towards patients.
3. Poor infrastructure and equipment.

These further end up in providing a least care for the patients.

As brought out in earlier discussion points, commercialization would lead to opening up the sector to private player, who, by virtue of their existence, would try to exploit and make the best profit out of business. But there are many other advantages that these private organizations could bring in:

1. Better infrastructure and technology.
2. Health and clean environment.
3. Better Logistics (ambulance and emergency services).
4. Better Management and effective utilization of resources (Doctors, facilities).
5. Cost effective & quality solutions due to health competition.

Based on the locality requirement.

However, nothing comes as free and there is a considerable risk. Either the cost effectiveness may cut a hole on the quality of service or the quality service can be rendered at a higher price. This problem of money laundering can be reduced through proper Government control. The Government can implement guidelines on the standards and pricing. Also, this has to be systemized by period audit by a transparent external agency. Various NGOs and private organizations like Manipal, Aravind are currently doing well in the health care sector. With many MNC's showing interested toward the CSI activities the controlled commercialization will certainly be a boon for our people.
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Yogi said:   9 years ago
The term Commercialization means the Profit is implicit requirement. The commercialization of health care has been adopted by most of the capitalist countries (especially western countries) where the cost of medication is very high and one has to have health insurance to get medical treatment from hospitals otherwise he/she cannot afford it. Unfortunately, we Indians have such a mindset that "whatever is western, is good"; so obviously following the same pattern even in Healthcare. The Insurance lobby is backed by politicians, funded by western investors. So Insurance companies ensure that the medicare costs remain high and people tend to buy Health Insurance from them.

Private Hospitals and Insurance lobbies always favor each other. Since Government/Government aided hospitals are not well-equipped, most of the people left with no option but to get treatment in Private hospitals. So this is the whole vicious circle. If we ask for salaries of doctors working in Private Hospitals, well, they do not get paid handsomely. For example, doctors sign contract for Rs. 80000/- but they get the actual salary of Rs. 40000/-. So the obvious question arises that where our money goes?

The point behind the whole story is, Education and Healthcare are the backbones of our nation and every citizen has the fundamental right (at least in books) to get the both. So these two things must have Government Regulation. The current situation is exactly opposite.

So final word is, Commercialization of Healthcare is not at all good. I agree that most of the Government Hospitals are still in the 19th century, but on the other hand, Private Hospitals, although very advanced, are profit oriented and do not care about their patients.
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Ryan said:   1 decade ago
Every thing some pros and con, commercialization of medical services in a country like India according me is good to a certain extent as we are getting better medical facilities, better care in most of the private hospitals. Patient are not required to wander here and there for tests prescribed by the doctors and thereby saving time and money at one point we all will have to agree that if we need best treatment then we will have to go through the tests prescribed by the doctors so that the disease is cured completely. Secondly as compared to other commercialized hospitals around the globe India provides very cheap service.

Well it has some bad effects also the more we go through privatization of the medical services the more will the the doctors attracted to money and there are doctors in India also whose main motto is profit they spend very less time in the government hospital and want to attract patients to their private clinics the greedy doctors are the main virus of many diseases.

So the conclusion is that the govt hospitals should be well maintained both apparatus wise and level of doctors should also be present government Should take care of that. Infact we the people of India we only make the government The largest democratic country. Why can't we help in developing the govt hospitals we should take care that if the doctors are spending the time allotted to them at the hospital or not whether the stuffs needed for treatments are available or not there are complain no. Available in every government Hospitals we can complain this cannot be done by single people we all will have to work for it. Lets hope something better comes out.
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Shantanu Ghosal said:   1 decade ago
Hi Friends.

Commercialization of Health care services is the need of the hour.

The plight of the government hospitals is known to everybody. Doctors are not available, medicines are not there, hygiene is in real bad shape (something that should not be at least in hospitals) , there are problems to accommodate of patients and etc. The government hospitals are so much plagued by indiscipline, corruption and other malpractices that only government few hospitals are there which function normally. This in turn result in unnecessary death of patients, dead bodies go missing from morgue, death due to bad hygiene conditions, animals eating dead bodies from morgue and etc.

So like any other sector, the healthcare sector is also in need of the healing touch of commercialization. The private hospitals have a 24 hour availability of doctors, nurses, equipment and medicines. Moreover hygiene and security is also stressed a lot in these hospitals.

However the private hospitals have higher charges for their services as they are driven by profit motive and with about 22% of people still below poverty line, a rightward commercialization will result in deprivation of medical facilities to a major chunk of population. So a private-government partnership should emerge so that the government can regulate the prices of the healthcare services keeping in mind every citizen of India and this will also provide the cushion of government funding to private investors and thereby their profits will also be taken care of.

Good Health care facility is the right of every citizen and the government should do all that it can to ensure it.
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Abhay said:   1 decade ago
Commercialization of Health Care: Good or Bad ?

According to my view, commercialization of health care will be benefit for India in many ways :

1: New machine, equipment, medicine and infrastructure will come into the hospital.

2: Diseases will get cure soon.

3: Test report of various disease will come soon so that the doctor can take quick action against the disease specially in case of DENGUE in which the test report take at least 24 hrs.

4: Commercialization also motivate the private players to enter into the health care market which will increase the competition in the market and patient will get benefited.

Govt can control the commercialization of health care by taking various steps :

1: By inviting private player for joint venture the up gradation of govt hospital can happen.

2: By luring the private player from tax benefit scheme the govt can keep control on private hospital.

3: By making mandatory for each private hospital that they have to treat at least 25% BPL & middle class people for free of cost which include every thing from doctor fees to medicine.

4: The private hospital doctors should give training to govt hospital doctors on periodical basis.

5: Govt & Private hospital account should be check on periodical basis in order to avoid any misuse to fund or subsidy provided by the central govt or state govt.

6: Make mandatory for private hospital that every hospital have to visit rural area once in a month & give treatment free of cost to rural people.

7: Give education on medical disease & there treatment in various school.
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Adi.B said:   1 decade ago
Hi dude.

My opinion is that the commercialization is good as well as bad. Because the people need good health to live in this world. Its very important that "LIFE IS ONCE, IT CANT COME AGAIN OR WE CANT BORN AGAIN". So we need good infrastructure to provide facilities to take treatment. It is applicable in the private sector and they treat the people good only by seeing the money which they afford.

The person "LIFE IS NOT AN PRODUCT TO BUY OR SELL", so private sector can also take effort to keep free medical camp as well as free treatment to the 60% of the middle & poor people in all over the country.

But in GOVERNMENT hospitals there is no such infrastructure to take treatment for harmful disease. Nowadays, in this sector also the doctors, staffs in the hospitals are going towards the price to take a treatment or to safe one persons life. So this issues should need to be reduced. And the government should come forward to take better decision to solve this problem.

I would like to conclude that the government should involve and have a good dealership among private hospitals to provide better infrastructure to save the people. And the government should put the order that all private sector should provide treatment to the people with low cost or keep free camp atleast twice a month.

It can definitely provide better infrastructure all over the world. And people can decide to go government as well as private sector for their further treatment. Because people think that "DOCTOR'S ARE BORN TO SAVE OTHERS LIFE. TREATED AS GOD. ".
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Rajesh said:   1 decade ago
Good evening friends.

Health care is the place where people come for treatment. So the health care should be neat and clean. Now there are three different types of family live in India-the rich family, the middle class family and the poor family. In India the 2nd and 3rd group amounts to almost 80%. For the first group its not difficult to go for private medication. The problem comes when we talk about 2nd and 3rd group. They just can afford to go for costly medication of private health care.

There are some benefits of commercialization of health care. They are.

1. Good sanitation.

2. Proper treatment.

3. Doctors on duty would always be there for the patients unlike gov hospitals.

Now if we look at the other side of the coin the situation is entirely different.

1. Private sector may charge the cost of medicine at their own will.

2. They may charge lots of money for treatment for a particular disease which might be provided at free of cost in the gov health care.

3. As I have said that middle and lower class family in India amounts to 80% in India who can't afford costly medication. It would be like a dream for those people to get their disease treated without money. Many people may die without treatment.

So I want to conclude that although commercialization of health centre has advantages but it has would have major problem with regard to the Indian population. So I would suggest to make our govt health care better by properly utilizing gov funds allotted for it instead of commercialization of health centre.

Thank you.
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