Not-for-Profit Hospital Model Study: NITI Aayog

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.

Recent Initiatives in Health Sector by India

• Increased Allocation for Health in Budget 2021.
• PM Atmanirbhar Swasth Bharat Scheme
• National Digital Health Mission
• National Medical Commission (NMC) Act, 2019.
• Pradhan Mantri Bhartiya Janaushadhi Pariyojana.
• Ayushman Bharat.