Private Hospitals Now Account for 60% of CGHS Spending, Up from 24% in Four Years

### Quick Summary
– Reimbursements to private hospitals under the Central Government Health Scheme (CGHS) increased from 24% of total CGHS expenditure in 2019-20 to nearly 60% in 2023-24.- Total reimbursement to private hospitals surged by almost 300%, rising from Rs.935 crore in 2019-20 to Rs.3,646 crore in 2023-24.
– The number of CGHS beneficiaries increased by approximately 39%, growing from 34.2 lakh in 2019-20 to 47.6 lakh in the current year.
– A March response by the health ministry highlighted complaints about empanelled private hospitals engaging in fraudulent billing, overcharging, and denial of treatment.
– CGHS does not impose a financial ceiling on patient expenditures, unlike Ayushman Bharat’s Rs.5 lakh limit per individual.
– Critics stated that an unchecked preference for referral-based curative care at private hospitals undermines preventive care and low-cost management within CGHS’s original framework.

### Indian Opinion Analysis
The sharp increase in reimbursements made to private hospitals under the CGHS highlights significant shifts within India’s healthcare system. While improved access for an expanding pool of beneficiaries is notable, concerns regarding inflated costs and questionable practices among empanelled hospitals point toward weaknesses in regulatory oversight. As critics have noted, this trend risks deviating from CGHS’s original mandate prioritizing thorough neighborhood-based preventive care.

the absence of spending limits under CGHS creates vulnerabilities such as lack of accountability for medical necessity or cost-effectiveness-leading potentially toward over-reliance on high-priced procedures rather than community-focused health solutions.Balancing curative hospital care with broader investments into prevention-focused policies would likely help ease financial strain on public resources while addressing long-term population health goals effectively.

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