Comparative analysis on the basis of cost between private and government hospitals in India can be done on the following points:
1. Primary cost differences
Government hospitals:
Basic services (e.g. consultation, medicines, bed charges) are often available free or at nominal cost.
Surgeries and major treatments also cost less due to subsidies (e.g. by ₹500-₹10,000).
Example: AIIMS, Government Medical College Hospitals.
Private hospitals:
Cost of services is market-based.
Simple consultation fee ₹500-₹2000, surgeries can cost in lakhs.
Example: Chain hospitals like Apollo, Fortis.
2. Factors affecting cost
Infrastructure and technology:
Private hospitals have advanced machines (e.g. MRI, CT scan) and modern wards, which increases the cost.
In government hospitals, the quality of service may be affected due to old equipment and overcrowding.
Staff and expertise:
Private hospitals pay higher salaries to specialist doctors, which is passed on to patients.In government hospitals, doctors are paid by the government, so patients are charged less.Availability of medicines and tests:Government hospitals offer cheaper medicines through Jan Aushadhi Kendras.Medicines and tests are more expensive in private hospitals because their margins are higher.
3. Hidden costs
Government hospitals:
Long waiting periods may force patients to seek tests from private labs/doctors.
Corruption (such as faster arranging beds/operations by paying “speed money”).
Private hospitals:
Additional tests and unnecessary procedures may be recommended.
Higher costs on emergency services if there is no insurance.
4. Impact of government schemes
Ayushman Bharat (PM-JAY):
Free treatment (up to ₹5 lakh) for the poor in government and emeriti private hospitals.
This has also led to a rise in low-cost options in the private sector.
CGHS and ESI:
Subsidised treatment for government employees in private hospitals.
5. Balancing quality and cost
Government hospitals:
Low cost, but quality affected by lack of resources, crowding, and delays.
Limited specialisation in critical illnesses (e.g. cancer, heart disease).
Private hospitals:
High cost, but fast and personalised service.
Better treatment in critical cases, but inaccessible to economically weaker sections.
6. Suggestions
Public-private partnership (PPP): Bring private sector efficiency into government hospitals.
Modernisation of government hospitals: Improve quality by increasing resources.
Control over private sector: Regulate prices of critical services.
