Page 179 - ES 2020-21_Volume-1-2 [28-01-21]

162 Economic Survey 2020-21 Volume 1

UNreGULated PrIvate eNterPrIse IN aN INdUstry Marked
By HIGH level OF MaRKeT FaIlURe

5.24 While the share of public institutions has increased both in hospital and outpatient cares, the
private sector dominates in total healthcare provision in India. Around 74 per cent of outpatient
care and 65 per cent of hospitalisation care is provided through the private sector in urban India
(Figure 15).

Figure 15: Share (per cent) of public sector in total
healthcare, hospitalisation care and outpatient care

Source: NSSO, various rounds.

5.25 The significant market failures that stem from information asymmetries in the healthcare
sector were highlighted earlier. Therefore, unregulated private enterprise can create significant
negative effects. For instance, Kurk et al. (2018) highlight that a large proportion of deaths in
India manifests due to poor quality of healthcare than due to insufficient access; this proportion
is significantly higher than neighbouring countries (Figure 16) and other countries in the world
(Figure 17).

Figure 16: Poor care quality leads to more deaths
than insufficient access to healthcare