Is India ready for Universal Healthcare ?


Last week there was a flurry of announcements from the Union government on measures to improve the state of Healthcare in India. One among them was the first step towards a Universal Healthcare model in India. If the Union government is to be believed, soon Government run hospitals will stop charging for primary healthcare treatments like consultations, basic medical tests and immunization.

Healthcare in India is almost entirely funded by individuals through out of pocket expenses.(Please see graph below)

Health expenses are a big reason for rural debt. People often borrow money from money lenders to pay for medical treatment of a family member. This leads to a scenario where these loans are repaid at high rates of interest over long periods of time. Moving towards free primary care would be a first step to raise the standards of living in rural India. By early detection and preventive care through primary health services, patients with a probability of requiring secondary and tertiary care is heavily reduced. This reduces the financial burden on the family as well.

The second reason that such a move will address is the absolute shortage of doctors in India. According to the Ministry of Health India faces a shortage of 6 Lakh doctors. But primary care can be provided by paramedical staff and healthcare workers, reducing the dependency on doctors. This way health services can reach a vast majority of our population with minimal investment.

However, delivering free primary care has its challenges. Firstly, the initial cost to set up the necessary infrastructure would be high. Secondly,as the service is free, there would be heavy patient inflow that would require more paramedical staff, health workers and nurses int he initial phases. Thirdly, it is the tax payer in the end who will have to bear the burden of free primary care. As the ratio of tax payers to non-payers is heavily skewed, the number of beneficiaries will far out number those that pay for such services. This would mean an increased burden on the government, that is already dealing with high fiscal deficit. Currently India spends about 5% of its GDP on health care and this would have to increase. Lastly, like any other government scheme, there is likely to be heavy mismanagement here as well.

In conclusion, universal health is a noble concept. India definitely needs one. But is it ready for one? I would love to hear your views on the same…




Dr. Vikram Venkateswaran

Management Thinker, Marketer, Healthcare Professional Communicator and Ideation exponent

This Post Has 2 Comments

  1. Anupam

    Universal healthcare is definitely a noble concept as it will solve the problem of financial access towards healthcare for rural people but personally i think India is still not ready for it. Apart from shortage of doctors and nurses we also have a huge gap in helathcare infrastructure and with mounting fiscal deficit i don’t know which magic wand will be used by government to arrange funds for Universal healthcare

    1. admin

      Hi Anupam

      I agree. I think the lack of Infra is definitely a problem. In addition I think we have to look at innovative ways to tackle the man power shortage. Currently there is a lack of 600,000 doctors and this cannot be fulfilled with mass admissions as the quality of care delivered will definitely suffer. I think we have to think out of the box for this.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.