How to reduce hospitalization costs?
Hopsitalisation costs in India is a curious combination of two contradicting realities. First reality about hospitalization costs in India is that costs of hospitalization in India is one of the lowest in the world. And not only is the cost of hospitalization in India low, the effectiveness of Indian hospitals in terms of outcome, particularly those in the private sector, is world class. This is one of the main reason that India has emerged as a destination of choice for medical tourism. This would lead one to believe that hospitalization costs should not be a problem for Indians. However, reality is opposite. Second reality about Hospitalization costs in India is that the number one reason for pushing families below poverty line is cost of hospitalization!! And this is true not only for bottom of the pyramid segment but also for middle class. As per government estimates almost 60% of the health expenses are out of pocket. And as per reports by ACKO insurance company, 23% of the hospital bills are financed by loans.
