Low, middle income Indian families one hospitalisation away from financial ruins

Individuals suffering from multiple health complications and seeking treatment at private hospitals face a huge risk of catastrophic health expenditure, either as an outpatient or inpatient, a recent study said

Hyderabad: Low and middle income families in India are just one hospital admission away from a major financial ruin. Individuals suffering from multiple health complications and seeking treatment at private hospitals face a huge risk of catastrophic health expenditure, either as an outpatient or inpatient, a recent study said.

Over half of patients (51 percent) with multiple morbidities (two or more chronic health conditions) face significant financial burden in private hospitals. The out-of-pocket expenses for outpatient care on private hospitals average Rs 950 while inpatient care costs soar to Rs 60, 438, a clear indication of the immense financial challenge of accessing quality healthcare for middle and low-income families in India.

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The research ‘Assessing the financial burden of multi-morbidity among patients aged 30 and above in India’, published in BMC Health Services Research (January 15, 2025), highlights how low and middle-income families financially struggle while accessing quality health care in India.

As part of the study, the research team analyzed health care data of 26, 905 patients from across the country. “Patients with multiple morbidities rely on private healthcare, which exacerbates the financial burden on them, as private care is often associated with higher out-of-pocket expenditure (OOPE), placing a significant strain on these individuals,” the researchers said.

In outpatient care, the out-of-pocket-expenditure for medicines is Rs 682 for such patients and in inpatient wards, the cost of purchasing the medicines is a staggering Rs 21, 206. Needless, to say, even the diagnostic tests that are taken-up for patients with multiple health complications is higher in private hospitals. The research study indicated that a typical patients with multiple health complications incurs at Rs 10, 807 towards diagnostic tests alone.

The study indicated that expenditure for people with Non Communicable Diseases (NCDs) like cancer, heart ailments, chronic kidney disease and live ailments is even more. “Patients with NCDs incur higher out-of-pocket expenditure for both outpatient and inpatient care across all illness categories. For multi-morbidity in inpatient care, the out-of-pocket for those with NCDs is Rs. 75,882, compared to Rs. 53,196 for patients without NCDs.

• 51.3 percent of patients with multiple health issues suffer huge expenses in OPs

• 69.6 percent of inpatients in private hospitals suffer catastrophic health expenditure

• 79.9 percent of inpatients from rural areas suffer catastrophic health expenditure

• 80 percent of elderly inpatients in private hospitals suffer high medical expenses

• Patients with more than one chronic health conditions face financial ruin

• Due to multiple health complications, 60 percent of patients prefer private hospitals

• Low and middle income families suffer major out of pocket expenditure in India