Reasons Behind The Rising Cost Of Healthcare Services In India

Rising Cost Of Healthcare Services In India

Over the past decade, India has witnessed a tremendous flourish in the healthcare industry, with destinations like Delhi, Chennai, and Mumbai leading from the front. However, while the development is noteworthy, a deeper introspection shows that it has not been inclusive. 

According to a statement by the Central government, nearly 75 lakh families are driven below the poverty line each year in India due to the rising healthcare costs. 

What exacerbates the situation for individuals are the increasing incidences of lifestyle-related health issues like thyroid and diabetes. As per a health survey, nearly 62% of the participants belonged to the high-risk or borderline high-risk category, of which young adults within the age group of 19 – 30 were at a severely precarious position.

This enlarges the gamut of individuals within the population who are at a disadvantageous position in the context of rising healthcare expenses in India. 

Why are healthcare costs on the rise in India?

Increased costs of Research & Development

As health issues continue to grow more complex across the globe, medical researchers and scientists have to invest more and more in R&D. Newer, more efficient treatment methods, ingenious procedures, and advanced medicines are all products of extensive years of research and development. 

Naturally, it involves considerable investment in the same, which snowballs with ensuing expenditures of trials, implementation, and training within the medical community. All these amplify the cost of healthcare in India considerably. 


The health ecosystem, although distinct in its own right, operates within the broader Indian economy. Thus, any macroeconomic change impacts this sector, of which inflation has been a significant driver. And the current economic predicament worsens the situation, with prices of consumer goods rising at an alarming rate. 

This increases the cost of supplies for medical equipment, remuneration of healthcare practitioners, expenses in maintaining a healthcare facility, as well as medicinal expenses. While households can tide over a part of this expense with what is generic medicine, sustained use of such may not contribute as well to health improvement as branded medicines. 

Inadequate resources

India has perennially suffered from a lack of resources when it comes to mitigating the prevalence of health issues. As per a survey in FY20, India only has 1 doctor for every 1456 patients. Aside from these, there are relatively fewer numbers of medical facilities to meet the needs of a population of 1.3 billion. 

These disparities in demand and supply drive up the prices of healthcare services considerably, with doctors charging more fees, hospitals asking for higher bed charges and the likes. While innovations like telemedicine are trying to bridge the gap, there’s still a long way to go. 

Aside from these, there are a few inadvertent shortcomings on the part of households as well that leads to higher healthcare costs for them, like – 

The disinclination towards preventive healthcare

A common phenomenon noticed in Indian households, in general, is that individuals are less disposed towards availing preventive healthcare services. Such a tendency over a sustained period can lead to graver health issues, which results in the incurrence of higher costs. Thus, it is essential to ensure consulting a professional at the onset of any health complication. 

Low penetration of health insurance policies

Although health insurance policies have become more popular than ever, they only cover 34% of the population in India. This is primarily because of lack of awareness, especially in rural regions. However, adjunct reasons like higher premiums and less-inclusive policies also dissuade individuals from availing healthcare policies in India. 

To that end, however, individuals can consider a Bajaj Finserv Digital Health EMI Network Card, which allows individuals to cover expenses of more than 800 treatments in India. 

What are the features of Bajaj Finserv health card?

The health card from Bajaj Finserv provides the following benefits to individuals – 

  • Extensive limit

The Bajaj Finserv health card allows individuals to access a pre-approved limit of up to Rs.4 lakh. 

  • Tenure flexibility

Cardholders can mitigate expensive treatment costs easily and repay them later in affordable EMIs across the tenure of up to 24 months. 

  • Wide coverage

Individuals can cover treatment costs of 800+ elective and non-elective procedures across 5500+ medical facilities, including multi-speciality clinics and hospitals, in more than 1000 cities. 

  • Nominal fee structure

Individuals can access the insta variant of this card at just a nominal cost of Rs.707. Non-insta cards, on the other hand, are available with a one-time payment of Rs.589 only.

  • Attractive offers at select outlets

Using this card to avail healthcare services from select medical outlets will result in attractive cashbacks and discounts for the users. Such facilities will likely increase your savings further.

  • One card covers your entire family

Cardholders can share the benefits of this health card with family members, such as their children, spouse, parents and siblings.

An online application for health EMI network card ensures a streamlined process, allowing one to avail of it during medical emergencies as well. With this card, patients can easily cover the expenses of treatment for health issues without any worry. 


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