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Despite India's impressive economic performance after India, over the last two decades, has enjoyed accelerated
the introduction of economic reforms in the 1990s, economic growth, but has fared poorly in human develop
ment indicators and health outcomes. Population averages of
progress in advancing the health status of Indians has
health status indicators, such as child health and maternal mor
been slow and uneven. Large inequities in health and tality, remain unacceptably high compared with countries in the
access to health services continue to persist and have south and east Asian region that have similar income levels and
even widened across states, between rural and urban rates of economic growth. Underlying the low population level
indicators, worrisome inequities coincide with the multiple axes
areas, and within communities. Three forms of inequities
of caste, class, gender and regional differences (Deaton and
have dominated India's health sector. Historical Dreze 2009; Claeson et al 2000; Subramanian et al 2006).
inequities that have their roots in the policies and In India, an important determinant of socio-economic inequi
practices of British colonial India, many of which ties in nearly all spheres of well-being is caste. The official classi
fication defines four categories of caste: scheduled castes (scs),
continued to be pursued well after independence;
scheduled tribes (sts), Other Backward Classes (obcs), and oth
socio-economic inequities manifest in caste, class and ers. The scs, the lowest level in the hierarchy, constitute around
gender differentials; and inequities in the availability, 16% of the Indian population, a large percentage of who live in
utilisation and affordability of health services. Of these, rural areas and are landless agricultural labourers. The sts, or
adivasis, often like scs, suffer economic and social deprivation.
critical to ensuring health for all in the immediate future
They comprise around 8% of India's population, obcs and for
will be the effectiveness with which India addresses
ward castes together comprise 76% of India's total population
inequities in provisioning of health services and (rgi 2001).
Economic & Political weekly BQC3 September 18, 2010 vol xlv no 38 49
comparison with the Figure 1: Inequities in Under-Five Mortality in India reproductive and child health survey on primary health centres
(2006)
general population, 0 20 40 60 80 100 120 (phcs). For the demand-side analysis, we have used data from
while the social gap three rounds of nfhs, conducted in 1992-93,1995-96 and 2005
between the scs and 06, to obtain information on utilisation of maternal and child
others; and backward health services, antenatal care (anc) and immunisation cover
classes and others have age. To assess utilisation of health services and the associated
persisted from the expenditure, three rounds of National Sample Survey Organisation
early 1990s to 2006. (nsso), i e, nsso 42nd round of 1986-87, 52nd round of 1995-96
For example, the aver and 60th round of 2004 have been used.
age annual rate of
reduction in usmr 2 Features of Health Service Provisioning
between 1998-99 and The present status of health service delivery has its roots in the
2005-06 among sts policy and practices during the British colonial period (Banerji
(3.9%) and scs (4.2%) 1985; Priya 2005). Many of these policies were pursued even after
was lower than that independence and health services were marked by inequities in
among obcs (4.8%) and availability and accessibility. Consensus is that even during the
the rest of the popula post-independence period, health services were under-financed
tion (4.6%) (Figure 2). and biased towards allopathic medicine, urban areas and curative
Trends in India's in Source: (1) HPS and Macro International (2007); NFHS 3,2005-06:
India Voll. services. Indigenous systems like ayurveda, siddha, unani and
fant mortality rates (2) http://www.nfhsindia.org/report.html accessed on
19 June 2009. homeopathy, continue to play only a marginal role in health
(imr) similarly capture service delivery (Banerji 1985).
a slowing down in the rates of improvement in child survival. For Figure 2: Social Gap in Under-Five Mortality for Three Periods 1992-93* 1998-99 and
instance, the average annual rate of reduction in imr, which was 2005-06
2.91% during 1976-86, dropped to 2.84% from 1986 to 1996, and
further to 2.31% during 1996-2006. The decade of the 1980s saw 101
a 27% decline in the country's imr from 110 in 1981 to 80 in 1991.
The next 10 years, 1991-2001, corresponding to the first decade of
economic reforms, witnessed a considerable slowing down in the
rates of reduction, a decline of 19% in imr to 66 in 2001 (Claeson
et al 2000; Mari Bhat 2001).
5? September 18, 2oio vol xlv no 38 E3223 Economic & Political weekly
Apart from direct state financing, covering only a small segment Table 1: Selected Health and Socio-economic Indicators: Kerala, UP and India
Indicators Year Kerala Uttar Pradesh India
of the population, there are several public insurance schemes for
employees in the organised sectors such as the employees' state Population (in millions)_2009_34 194 1,160
Female-to-male ratio (females per 1,000 males) 2009 1,052 898 932
insurance scheme, central government health scheme, railways
Per capita state domestic product (Rs) 2006-07 33,609 14,649 29,642
and posts and telegraph services. Public and private insurance 2001-05 74 62 63
Life expectancy at birth (years)
schemes cover barely 11% of the population (goi 2006). Conse 2005-06 16 96 74
Under-five mortality rate
quently, healthcare is financed substantially through out-of-pocket Infant mortality rate 2007 13 69 55
(oop) payments by individuals and households. Literacy rate (%) 2001 91 56 65
The private sector, constituting both "for profit" and "non Female literacy rate (%) 2001 88 42 54
profit" institutions, has a sizeable presence in delivery of health Population covered by a sub-centre _4,628 6,416 5
services, which comprises a wide array of institutions with vary Population covered by a PHC 29,570 45,095 3
% of villages having access to a PHC
ing degrees of sophistication in terms of services and qualified within five km 94 48 44
personnel. The "for profit" sector is proportionately larger than
PHC with at least 60% of inputs:
the "non-profit" sector; the latter includes community level pro Infrastructure
_65 17 32
grammes, dispensaries and hospitals that are funded by religious Staff_ _97 53 48
and secular organisations (Nundy 2005). There is diversity and Supply _78 20 40
hierarchy in the institutional composition of the for profit sector Population served per government hospital _1,77,614 6,01,241 1,56,556
consisting of a range of informal practitioners, clinics, small and Population per government hospital bed _1,299 20,041 2,336
% deliveries attended by health personnel 2005-06 99.4 27.2 41.2
large nursing homes, corporate hospitals, diagnostic centres and
%children 12-23 months fully immunised 2005-06
pharmacies (Jesani and Anantharaman 1990; Nandraj 2000; Source: (1) Central Bureau of Health Intelligence, www.nrhm.nic.in accessed on 6 M
Baru 2005). The informal practitioners constitute the largest pro Ministry of Health and Family Welfare, CBHI (2004).
(2) HPS (2003). India Facility Survey, RCH-RHS.
portion in terms of numbers and spread, and provide primary
level services in rural and urban areas (Narayana 2006; Rhode services in the rural and urban areas and across states
and Vishwanathan 1995). The secondary level consists of small are pronounced in terms of infrastructure, human
and large nursing homes that are owned by mostly physician supplies, bed-population ratios and spatial distributio
entrepreneurs and provide outpatient and inpatient services. The institutions. The interstate variations are best illu
majority of these are small institutions, with 85% having less comparing the state of Kerala with that of up; the f
than 25 beds. Tertiary specialty and super-specialty private insti among the best and the latter the worst indicator
tutions comprise only i%-2% of the beds in private sector institu service development and health outcomes (Table i).
tions. They include large specialist hospitals promoted by mostly In spite of the rapid rise in private provisioning of h
big business groups and managed as corporate entities. The Kerala over the past two decades, the relatively bette
secondary and tertiary hospitals are largely skewed towards ing of phcs and the much higher health status in com
urban areas and developed states (goi 2006). The distribution other states of India is essentially due to the inves
of private sector facilities between states Figure 3: Full Immunisation Rate*, Inequities
provisioning
in of basic services by the state
Utilisation of Preventive Care
and regions is even more unequal than Full immunisation (%) government. Studies on Kerala have fur
those in the public sector. This reflects the 0 20 40 60 80 ther highlighted the role of the state in in
tendency to concentrate on better-off states Lower vesting in
quintile ^social development,
24.4 j even
I at low
and regions within them (Bhat 1993,1999; levels of per capita income, and achieving
Baru 2005). Scheduled tribe 31.3
improvements j
in the health, which are com
Uttar Pradesh HiS23
parable to those in middle- and high-income
3 Inequities in Access to countries (Dreze and Sen 1996). up, on the
All India (1992-93) 135.5
Health Services other hand, has a persistence of high pov
Rural 38.6
It is well known that reduction in mortality
and morbidity is partly due to preventive
II
Scheduled castes ! ? 39.7
erty levels and poor health services and so
cial development.
and curative interventions by public health
services. The availability of these services All India (2005-06) ^ H 43.5 j Inequities in Utilisation of
" !
cause of differences in infrastructure, hu Highestquintile ^^^^^^^^^^^^^^^^^171
The utilisation of preventive services such
as childhood immunisation and anc are
man resources, supplies and spatial distri
bution. In this section we describe the bar
Kerala ^ i 75.3
Mothers with more ^^^^^^^^^^^^^^^^^ effective indicators for assessing the avail
riers to equity and universality in terms of than 12 years
education ! ' of ^HHHHL^HLSplH 752
ability, accessibility and quality at the pri
inequities in availability, utilisation and mary level of health services provisioning.
* Full immunisation includes Bacillus Calmette-Gue>in (BCG against
tuberculosis), measles, and three doses each of diphtheria, pertussis
affordability of healthcare. (whooping cough) and tetanus (DPT) and polio vaccine (excluding The overall indicators for full immunisa
polio vaccine given at birth).
Source: (1) HPS and Macro international (2007), NFHS 3 2005-06: tion are poor in India with variation across
Availability of Care: Inequalities are per
India Voll.
rural and urban areas; states and socio
(2) http://www.nfhsindia.org/factsheet.html accessed on
vasive in the availability of public health 30 September 2009. economic groups (Figure 3).
Economic & Political weekly Q3S3 September 18, 2010 vol xlv no 38 51
at about 13%. With indirect costs and income loss for that period poorest consumption s
due to illness are added, the proportion is close to 33% in rural 20% for the rest of the
and 17% in urban areas. Thus, the expenditure burden of what tion size class. Thus, th
may be called "day-to-day morbidities" (reference period of tion is substantial for n
15 days) is very high, particularly in the rural areas. The burden Figure 5: Burden of Direct Heal
of expenditure for hospitalisation (reference period of one year) Inpatient
35
Treatment in Rural Ar
00
10
0.225 225-255 255-300300-340 340-380380-420 420-470 470-525 525-615 615-775 775-950 950+
mpce class
Source: NSSO 2006.
This trend holds true for outpatient care in the urban areas.
The expenditure burden is very high for the poorest two size
classes; it stays at around 15%-i6% for all but the two richest size
classes. The pattern is different for inpatient care. The expendi
ture burden is very high for the poorest two classes and the three
Rural Urban
richest size classes. The high burden for the richest sections is
Source: NSSO Surveys of Consumption Expenditures 50th, 55th and 60
because they use private (mostly tertiary) and corporate hospitals
In order to capture the
on a significant inequities
scale where and
the cost of care is very high compared bu
with other rungs of the private and public sector
expenditure across consumption (Figure 6).
classes, we
an analysis based onFigure
the 6oth
6: Burden of Direct Health Expenditure onround of the
the Household for Outpatient and
Inpatient Treatment in Urban Areas (2004)
has included households that sought treatm
and inpatient care in rural and urban areas
expenditure incurred. The expenditure in
and indirect expenses, as commonly catego
economics literature.
The formula used for computing the burden
penditure is as follows:
Economic & Political weekly E353 September 18, 2010 vol xlv no 38 53
nearly 29%
atof the ho
creating
major source of
absencefina
of
with the reality
trolled that
in t
rising, the poor ofte
variation
consumption levels
between of
th
2007). Thus, illness
cost in o
pub
terious consequences
the private
ishment of the hous
caesarian se
is Rs 1,792
4 Factors even
Affectin
for d
The previous
Rs section
19 in th
utilisationsector
and (Ra
affor
discuss Unregulat
five key healt
to health services.
nology an T
public impact
sector; on
variable
unregulated commer
provisionin
forms; providers'
and lack of ac
know-how
Insufficient Invest
the largest
The low unfavourab
public investm
has been a1993; Sund
significan
tion of Narayana
public servic
low compared
The with
recent
and the and Regul
governmen
bilateral and multila
governmen
lowest forfor servic
countries
over a level care
three-year avr
$0.80, the istry
correspon
and m
total per capita
is a heal
propos
ures, along with
ing ext
good pr
the poorer African
conducting
Government
and spendi
legalis
Assay
penditure, is (elisa
among
due to currently
federalism, la
duce use, quality
variability in av
The long-standing
been w
formu
partly includes
responsible a
f
tor, for and
the
latory pu
Aut
panded byvisioning,
drawing
resources from
tary sub
state
with driven,
public wh
appoin
offering works
tax in se
concess
infrastructural facil
providers,
clinics, in
Unregulated
such Comm
legisl
lated not been f
commercialisa
medical and paramed
and cost Health
of Sec
healthcar
the the period
variability in p
cost and health sect
technical qu
the introduced
largest segment o
an adverseto improve
impact on
et al 2001; were
Kamatintro
200
1995; part
Nandraj of the
2007;
The during
problems arethe
sim
few user
initiatives fees,
for r
54 Septemb
private sector, decentralisation and public-private partnerships staff and facility amenities. Several studies have commented on
were introduced (Duggal 2005). The evidence on the experience the variable quality of public services due to lack of adequate
of the introduction of user fees in the public sector across states is infrastructure, human resources and indifferent behaviour of
somewhat mixed in terms of impact on levels of utilisation. In public employees (Rao et al 2005; goi 2006). The recent plan
some states, for example, Andhra Pradesh, utilisation of the public documents have acknowledged these as constraints on the qual
sector has improved after health sector initiatives were put in ity of care provided by the public sector (goi 2006).
place (Shariff and Singh 2002). However, the available evidence More recent surveys and studies also show that people are not
shows that user fees have tended to exclude the poorest, despite satisfied with public services and highlight the lack of infrastruc
efforts to ensure that those below the poverty line are exempt ture and indifferent and rude behaviour of personnel as impor
from paying user charges (Garg and Karan 2005). International tant reasons for not using public services. According to the nsso,
experience also corroborates the findings from India and shows "not satisfied with medical treatment" ranks as the primary rea
that even a small user fee charge can exclude the poor from utilis son in both rural and urban areas. This is followed by "lack of
ing health services (Hola and Kremer 2009). availability of services" in rural, and "long waiting" in urban areas.
Not all reform initiatives in health have been led by the World Similarly, the latest nfhs shows that the perception of "poor
Bank. Prominent among the state-led is the Tamil Nadu Medical quality of care" is the most important reason across selected
Supplies Corporation (tnmsc) that has been successful in states. The survey itself does not provide insight into what the
streamlining drug procurement, distribution and controlling determinants of quality are in health services. A recent study
showed that determinants of quality include clinical and inter
costs of medicines in the public services. The Tamil Nadu model
is being adapted by several states in India for ensuring a proper personal dimensions and these influence the choice and utilisa
supply of drugs in the public services. In 1995, the Tamil Nadu tion of anc (Rani et al 2007).
government adopted a list of essential drugs to be provided The assumption that private services offer superior quality of
through the tnmsc. services is not adequately supported by any hard evidence. While
tnmsc, designed and funded entirely by the state government some private sector facilities offer good quality services, this
is responsible for the purchase and distribution of essential drugs cannot be generalised because of the heterogeneity of facilities,
in the public health services. This ranges from tasks that include personnel and their practices. Evidence from micro studies is
identifying suppliers who monitor appropriate storage of drugs in revealing. Private care practitioners along with public care prac
warehouses and its appropriate distribution, tnmsc has laid strict titioners, for example, in Delhi, are more skilled and knowledge
and elaborate procedures to ensure an uninterrupted and quality able in the wealthier areas in comparison to the poorer area
supply of medicines. A drug committee identifies the list of essential (Das and Hammer 2007). Informal practitioners adopt irrational
drugs. It consists of professors of medicine, clinicians in various practices in prescribing medicines for the treatment of communi
medical fields, pharmacologists, a representative from the World cable diseases like malaria, diarrhoea, tuberculosis and fevers
Health Organisation, health secretary and the managing director (Banerjee et al 2004; Uplekar et al 2001; Kamat 2001). Such prac
of tnmsc. All government healthcare institutions and pharma tices are also evident in infertility care services and childbirth
cists are given the list of essential drugs. Thereafter, local health (Unisa 1999). In case of obstetric care, a study of informal practi
officials can request the committee to modify the list in accordance tioners in western Uttar Pradesh shows inappropriate use of
with their local needs. The drugs allocated to phcs are limited to oxytocin to speed up labour in women during home deliveries
54 essential drugs, tnmsc invites tenders by advertising in the (Jeffery et al 2007). These practices are not only inappropriate,
print media, including pharmaceutical trade journals and its but dangerous for maternal health as it results in serious postpar
own web site, with clear guidelines for supplier selection, quality tum complications and related morbidities.
control and distribution. The committee pays the supplier only At the secondary level, a study of private hospitals in Chennai
after receiving a report on quality control. A detailed system of revealed that this sector has grown without any norms for infra
warehousing the drugs and accounting by the health centre are a structure, with a strong tendency to over-provide care, depending
part of the procurement policy (Lalitha 2005 and 2007). on the patients' ability to pay (Muraleedharan 1999). Another
study in rural in Maharashtra revealed that only 55% of private
Variable Quality of Care in Public and Private Sectors: Common sector institutions had registration, only 38% maintained any
complaints against public care cited in the recent nsso (2006) kind of records, and that a remarkably high proportion lacked
and nfhs (1998-99 and 2005-06) include: "Not satisfied with basic facilities. This study showed that close to 30% were being
medical treatment", "lack of availability of services", "long wait run by doctors not trained in the allopathic system of medicine.
ing times", "poor quality of care", and poor interpersonal interac They were being run without adequate facilities and human
tions. Additionally, assessment of the public sectors underscore power, with only 2% employing trained nurses. Only 10% of
poor technical competence, poor accessibility to services, inade hospitals had an ecg monitor, 655 a steriliser and 56% an oxygen
quacy of drugs and supplies, poor staff availability, and poor cylinder (Nandraj and Duggal 1997). Yet another study found
quality and amenities (Rao et al 2005). that caesarean sections were performed three times more in
The quality of health services is dependent on a number of private hospitals than public ones (Homan and Thankappan
factors related to technical competence, accessibility to services, 1999). The extent of variability and lacunae that several of these
interpersonal relations and presence of adequate drugs, supplies, studies have observed in infrastructure, basic facilities, human
Economic & Political weekly [3353 September 18, 2010 vol xlv no ^8 55
56 September 18, 20
The nrhm is a large, centrally-driven programme of the(1) Given the number of programmes that are focusing on t
govern
poor like
ment which has tried to address some of the key inequities and socially marginalised, the need arises for enhanc
underinvestment in financing, human resources, infrastructure
public investments and greater synergies at different levels of
and some aspects of quality in the public sector. It has also
plementation
initi within and across ministries.
ated several measures for accountability such as political
(2)checks
Comprehensive regulation of the public and private sectors
required in provisioning, medical technology and pharmaceutica
and balances, administrative procedures and auditing (Dasgupta
and Qadeer 2005; Shukla 2005). This is critical for controlling costs and improving quality
Many of the strategies focus only on the public sector, while
accountability. Provider behaviour, an essential component of qu
the role of the private sector and its regulation is poorly ity and accountability, requires innovative approaches that perm
denned.
Its focuses on rural areas and less developed states as aa greater
step to voice in monitoring performance to beneficiary comm
nities and their representatives. For the private sector, accounta
wards bridging rural-urban and inter- and intra-state inequities
ity can
in the availability of health services. The review of the nrhm hasbe assured by a combination of legislation, involvement
shown that there are interstate variations in the uptake of the
professional organisations, consumer rights groups and public
programme and there are serious gaps in the availability, deploy
tion. The way forward in the public sector could be the implem
tation of the Indian Public Health Standards and a combination
ment and retention of medical and paramedical personnel.
In response to the high out-of-pocket expenditure onincentives
health and disincentives to induce greater sensitivity and
services and the increasing burden on the poor andcountability
socially of providers at the panchayat or the municipality lev
marginalised, the government has initiated an insurance(3)
scheme,
New and innovative systems of monitoring performance a
evaluating
Rashtriya Swasthya Bima Yojana (rsby). This is a hospital insur progress towards equitable health outcomes need
ance scheme for families below the poverty line as a protection
be introduced. It would be worthwhile, for instance, to adopt
idea of institutionalising a health equity gauge, that helps
from catastrophic expenses. While this is an important protective
track
measure for those below the poverty line, our analysis on inequities, similar to that initiated in South Africa a
burden
of health expenditure across consumption groups showsadopted
that the
by a few middle- and low-income countries at the centr
and state levels. Another innovative initiative is seen in the c
burden is quite substantial for even the rest of the population.
of Health Councils in Brazil that have institutionalised health
6 The Way Forward sues as a primary policy concern both at the local and nation
In order to address the persistence of inequities in health
levelsand
as a citizen's right (Equity Guage 1999). The present g
ernment
access to health services in India, we identify four key areas that can build further on the steps they have started, a
require urgent attention and actions. address inequalities in availability, utilisation and affordabi
withspon
Most of the equity enhancing programmes are centrally greater seriousness, as well as a courtship of democra
voices and the rules of deliberative democracy (Gutman
sored, time bound and vertical interventions. They are sponsored
Thompson 1996; Daniels 2008; Bonu et al 2007).
and implemented by separate ministries with little coordination
let alone synergies between programmes. There has been
(4) aHealth
ten security in India needs to become an urgent nation
dency for these newer initiatives to target the socially and
marginal
political priority. Rapid improvements in health are need
ised and those below poverty line. Our analysis of burden
not of ex to accelerate and sustain India's economic growth; they
only
penditure shows that while the poorest are v/orst affected, the
also fundamental to India gaining recognition as a distinguish
burden is substantial even for the middle quintiles. This holds
middle-income country with improved standards of living and
true for outpatient and inpatient care in rural and urban areas.
duced levels of human deprivation. Focusing on health equity w
This raises concerns regarding targeted approaches that focus to enhancing human capabilities and advancing t
be critical
only on poorest, but argues for universal access to health progress
services. of Indian society over the next decade.
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