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Not-for-Profit Hospital Model Study: NITI Aayog

  • IASbaba
  • July 1, 2021
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Not-for-Profit Hospital Model Study: NITI Aayog

Part of: GS Prelims and GS -II – Health

In news

  • Recently, the NITI Aayog released a comprehensive study on the Not-for-Profit Hospital Model in the country.

Major Findings

  • Most of the not-for-profit hospitals charge lower than the for profit hospitals.
  • Most of the Not-for-profit Hospitals are empaneled with State or Central Government Healthcare schemes.
  • They use various levers, such as multitasking of workforce, In-house manufacturing of equipment, to facilitate their low cost of clinical care. 
  • They have lower operating costs as compared to For-Profit Hospitals.
  • There is a strong focus on quality care 
  • Challenges:
    • Most of the hospitals find it difficult to recruit and retain doctors and staff.
    • Delayed reimbursements and long-pending amounts
  • Funding:
    • External funding in the form of philanthropy and grants 

About Not-for-profit hospitals

  • Not-for-profit does not make profits for its owners from the funds collected for patient services. 
  • The owners of these hospitals are often charitable organizations or non-profit corporations.
  • These hospitals are a potential remedy to the challenges of unavailability and unaffordability of healthcare in India.

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