Privatization in Health Care Services !!

Introduction:

  • Simply, privatization in health care means involvement of private sector (private hospitals, clinics etc.) in health care services.
  • It refers to the transfer of the function and ownership of any services and assets to the private sector.
  • Privatization in health care refers to the act of providing/taking ownership and responsibility of providing health care and services to the private sector.
  • The involvement of private sectors could be as direct as involvement of physicians, pharmacies, and hospitals or it could be as indirect as involvement of manufacturers of materials and technologies used in health care provision

Reasons for Increase in Privatization of Health Care:

  • Government is unable to provide the comprehensive health care services to the people.
  • Often the services provided by the public sector does not meet up the demand and create the chaos
  • Low government expenditure in health leading to low quality services
  • In many cases, liberal policies of the countries fostered the growth of private sectors in health. These policies have encouraged the involvement of private sectors for strengthening health sector.
  • Many countries also shifted to the privatization due to the policies of world bank and IMF.
  • High dominance of private sector in terms of resources (man, money, manpower, equipment)

a) Quality and Early Treatment:

  • Private sectors are always people and profit oriented, due to which they give more priority to the services
  • Private healthcare institutions are much more systematic in compared to the public ones
  • They provide early and quality services.
  • They are comparatively more accountable and responsive to people’s demand

b) Free to Choose:

  • In case of private health care facilities, there are always many options.
  • Patient can freely choose the doctor, hospitals services, etc.
  • Private sector introduces range of health services

c) Continuous Health Care:

  • Private sectors are often untouched by the political scenario
  • They provide continuous services at any cost.

d) Improved Facilities:

  • New technologies have been invented and introduced.
  • Medical treatments had taken huge leap in private facilities.
  • Government sectors lack improved facilities due to lack of resources.
  • Private sectors provide different sophisticated services.

e) Boost to public sectors:

  • Privatization also helps the public sector
  • Involvement of private sector in health shares the burden of the government
  • Financial burden of the government also decreases due to involvement of private sectors in health
  • Competitive market of private sector encourages the public sectors to boost up the private sectors.

Limitations of Privatization in Health Care Services:

1. Increase in expenses:

  • Private sectors provide variety of range of services but is too expensive for general public to afford.
  • Private sector further deepens the financial burden.
  • Private sectors are responsible for rise in out of pockets expenditure.
  • Profit seeking motives of the private sector have raised unnecessary diagnosis and tests.

2. Increase in gaps:

  • Privatization has further increased gap in health
  • Private sectors being profit oriented are more focused on the urban areas where the population are high. This further increase gap and inequity in health services.

3. Market monopoly:

  • Country where private sector is too flourished than public sector can have the monopoly in the health market.
  • Creates the unhealthy competition
  • Cases of frauds are likely to increase
  • Private sectors are involved in more in such sectors where there is more money than the demand based services.

Examples of Privatization in Health Services:

  • In countries like India, private sector has plays significant role in the health care delivery system. It has been estimated that about 57 percent of the hospitals and 32 percent of the total hospital beds are in the private sector. Only 20 percent of the registered allopathic doctors serve from the government services centers (1993).
  • Study done in India have shown that people generally prefer private health care facilities than the public facilities. Private sector accounts for 82% of outpatient visits, 58% of inpatient expenditure, and 40% of births in institutions (2002). The numbers have increased even more in the recent years.
  • Private sectors do have significant role in Sub-Saharan countries as well.

Things to Consider by the Government before Privatizing Health Services:

  • Involvement of private sector is boon as well as curse.
  • It has been able to make the health services accessible to all and in the meantime has also deepened holes in pockets of public.
  • Due to rise in substandard privatization in health sectors needs to be regulated and monitored in order to ensure quality services
  • Government should make the guidelines regarding the provision of services provided, areas of involvement, quality of services provided and many more such factors

 

References and For More Information:

https://ir.lawnet.fordham.edu/cgi/viewcontent.cgi?article=2976&context=flr

https://www.economicshelp.org/blog/501/economics/advantages-of-privatisation/

https://www.princeton.edu/~starr/articles/articles80-89/Starr-MeaningPrivatization-88.htm

https://blogs.bmj.com/bmj/2016/09/30/does-a-booming-private-healthcare-industry-in-nepal-benefit-its-people/

https://www.gktoday.in/gk/privatisation-of-health-sector/

http://ijme.in/articles/privatisation-of-health-care-new-ethical-dilemmas/?galley=html

https://academic.oup.com/eurpub/article/19/5/448/513873

https://www.npinstitute.com/public-vs-private-hospitals-s/1852.htm

http://www.who.int/bulletin/volumes/91/3/12-110791/en/

http://www.alliedacademies.org/articles/privatization-in-health-care-theoretical-considerations-and-real-outcomes.pdf

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5394993/

https://www.nepjol.info/index.php/JHFA/article/download/8489/6889

http://medind.nic.in/haa/t08/i1/haat08i1p19.pdf

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1285083/

About Kusum Wagle 216 Articles
Hello and greetings everyone! I am Kusum Wagle, MPH, WHO-TDR Scholar, BRAC James P. Grant School of Public Health, Bangladesh. I have gained profound experiences in public health sector under different thematic areas of health, nutrition, sexual and reproductive health, maternal and newborn health, research etc., targeting diverse audience of different age groups. I have performed diverse roles ranging from lecturer in the public health department of colleges, nutrition coordinator, research coordinator and consultant, in different programs, projects and academic institutions of Nepal. I also hold immense experience in working closely and persistently with government organizations, non-government organizations, UN agencies, CSOs and other stakeholders at the national and sub-national level. I have successfully led and coordinated different projects involving multi-sector participation and engagement. Moreover, I am also regularly involved in the development of different national health related programs and its guidelines.