Inpatient Healthcare Financing Strategies: Evidence from India

Limited availability and accessibility of the public health care facilities have resulted in an increased burden of financing healthcare in developing countries. Therefore, we analyse the inpatient-care financing strategies in India using healthcare and morbidity rounds (1994/1995, 2004, and 2014). Although income and saving is the predominant source of financing healthcare expense constituting a major channel in 70% of the inpatient episodes; the poorest 40% of the households rely more on borrowings, which pushes low-income families into debt and poverty trap. The educated, wealthy, and female tend to rely more on income/saving, while a greater number of visits to the hospital, long duration of stay, and chronic illness are positively associated with the borrowing and sales of assets. Hence, the health care policy, guided by the agenda of Universal Health Cover, should aim to extend health insurance for the chronic recurring illnesses that entail distressed financing strategies.