To foster competition & cut costs.
Insurance companies are right to seek the government’s support to prevent hospitals from overcharging patients covered by health insurance. Hospitals do not come under regulatory purview, but their practice of inflating costs even for standard procedures is unacceptable and must end.
Intervention by the government is in order. India, though, should not go the US way, in which hospitals and health insurers prosper even as patients are burdened by huge healthcare costs. India has to develop its own model. The rudiments of one are already available in the high-volume, low-margin, standardised procedure-driven approach followed by the likes of Narayana Hrudayalaya and Arvind Netralaya.
A missing part is a regulator for hospitals, to ensure transparency in procedures and billing, ethical competition and portability of medical histories across hospitals and towns. Hospitals will not have an incentive to inflate costs if they also offer insurance services.
However, if their policies are tied to their own services, the result could well be sub-optimal. We also need more hospitals and urban space to build these hospitals. Unfortunately, land costs account for a large proportion of the total cost.
Increasing the supply of urban land is an urgent concern for all secondary and tertiary economic activity, including the provision of healthcare and education. Competition among hospitals will help lower costs. Insurers can bring costs down on the basis of volume discounts, as well.
Today, hospitals provide cashless hospitalisation to select groups of policyholders. However, many insurers are withdrawing the facility, as hospitals are not willing to accept the rates proposed by insurers. Insurance companies will be saddled with losses if their pricing is not commensurate with costs.
Hospitals will also lose their business to the ones on the preferred network of the insurers. And raising premiums will hurt consumers. A pragmatic solution is for hospitals to adopt low-cost models, and for a regulatory apparatus to enforce fair competition among hospitals.
Posted by Elizabeth John Sen , nurse at x-columbiaasia staff | 17 Aug, 2010
Posted by Prashant Savla | 17 Aug, 2010
Posted by dr sd kalyankar , director & CRA at DRC HINGOLI (MS) INDIA | 15 Aug, 2010
Posted by Sarika Kwatra,Business development Manager at Max Hospital, Pitampura|14 Aug, 2010
Posted by balasubramanyam | 14 Aug, 2010
Posted by sriharsha | 14 Aug, 2010
Posted by JPSingh , Management Consultant at Justplainandsimple Consulting Pvt. Ltd. | 13 Aug, 2010
Posted by DR.SIMON CHUMMAR , ORAL AND MAXILLOFACIAL SURGEON at NMC SPECIALITY HOSPITAL | 12 Aug, 2010
Posted by Sudhir Kumar Sinha , Self Employed at NOne | 12 Aug, 2010
Posted by Dr. Gaurav Kharbanda , Consultant Dentist at National Heart Institute | 12 Aug, 2010
Posted by shankar v ramany , National Head, Healthcare at CREMA | 12 Aug, 2010
Posted by Nitin Kumar | 11 Aug, 2010
Posted by jawahar saha | 11 Aug, 2010
Posted by Manoj | 11 Aug, 2010
Posted by Ramesh , GM Sales and Marketing at MARSUS PHARMA TeC | 11 Aug, 2010
Posted by MURALI GOURISHANKAR | 11 Aug, 2010
Posted by Jeyachandran , Honorary Consultant at Smart mini Health centre | 11 Aug, 2010
Posted by Dr Nalam Seetaramji , Medical Superintendent at Mahanadi Coalfields Limited | 11 Aug, 2010
Posted by Surinder Kumar Joshi | 11 Aug, 2010
Posted by Dr.Moin Khan , Head RSBY at Genins India TPA ltd.,worked for Raksha TPA and E-meditek as well | 11 Aug, 2010
Posted by Dhawal Sharma , Area Manager at SMC Insurance Brokers | 11 Aug, 2010
Posted by Sriharsha | 11 Aug, 2010
Posted by dr.punam singh | 11 Aug, 2010
Posted by shreedhar archik , Orhtopedic surgeon at self employed | 11 Aug, 2010
Posted by subhasis das , RSM at BSVL | 10 Aug, 2010
Posted by Ashwin Benegal | 10 Aug, 2010
Posted by Akepati Kishore , Healthcare Consultant at RHS | 10 Aug, 2010
Posted by venugopalan , Agent at United India Insurance Co. | 10 Aug, 2010
Posted by Dr.Manju Prakash , Prof, Forensic Medicine at Medipalms Diagnostics, Bengaluru | 10 Aug, 2010
Posted by Gautam Chawdhry , Geriatric care Manager(Neurorehab) at CARES | 10 Aug, 2010
Posted by Ripen | 10 Aug, 2010
Posted by Parveen Kumar Chopra | 10 Aug, 2010
Posted by Anurag Saxena,Intensivist at Sydney West Area Health Services|10 Aug, 2010
Posted by Satya Narayana Palukuru,Advocates & Mediators at Advocate , Hyderabad|10 Aug, 2010
Posted by promod kohli,consultant at artemis hospital|10 Aug, 2010
Posted by Sridhar | 10 Aug, 2010
Posted by Dr | 10 Aug, 2010
Posted by Deepak Khurana,Manager Sales at Kotak Life Insurance|10 Aug, 2010
Posted by Deepak Kumar | 10 Aug, 2010
Posted by Dr.Prabhakar G.V.J. | 10 Aug, 2010
Posted by lakshmi vishnu | 10 Aug, 2010
Posted by dhawal sharma , Area Manager at SMC Insurance Brokers | 10 Aug, 2010
Posted by parveen kumar chopra | 10 Aug, 2010
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