An Analysis of Private Participation in Health Infrastructure in India

Abstract

Privatization of healthcare is an international trend originating from liberal thought. According to this, privatization offers options to all social and economic groups in the nation. However, market failure and externalities result in differential access to high-quality healthcare. Since the implementation of neoliberal policies in India in the early 1990s, there has been a steady rise in private involvement in the healthcare sector. In this context, an attempt is made in the present study to analyze the trends in private participation in the growth of health infrastructure in India and the regional disparities. This research is based on secondary data collected from several published sources. The analysis reveals that between 1998 and 2020, private hospitals have grown at a compound annual growth rate of 6.73 percent and beds in private hospitals have grown at a compound annual growth rate of 7.37 percent. Pearson Correlation Coefficient is calculated to determine the relationship between the state's economic position and private sector participation in the creation of health infrastructure.