Hospitalization and Out of Pocket Expenditure: A Comparative Analysis of Maharashtra and Uttar Pradesh

Shachi Jha


This paper examines the patterns of hospitalization with respect to disease burden and scrutinizes the role of socio-economic and demographic factors responsible for variation in out of pocket expenditure (OOPE) in Maharashtra and Uttar Pradesh. Data were acquired from 75th round of National Sample Survey (NSS) conducted during 2017-18. Data for only hospitalization cases during the last 365 days prior to the survey was included for analysis. Different aspects of hospitalization were analysed using standard methods. OOPE was estimated and regression analysis was undertaken to explore various relationships between it and socio- economic variables. The results show a higher utilization of private healthcare facilities except for the socio-economically weaker sections of the society. Further, hospitalization rates were higher in Maharashtra than Uttar Pradesh but average medical expenditure for Uttar Pradesh was higher than Maharashtra. The major source of finance to cover the medical costs was the household’s income leading to OOPE. Thus, there is a need to increase public investment in healthcare along with other initiatives. For Maharashtra, preventive healthcare facilities should be promoted and for Uttar Pradesh, pricing guidelines for medical treatment during hospitalization should be established.

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