Addressing Overcharging in Indian Hospitals
"Bridging the Gap Between Patients and Hospitals in India"
Graduation research project by Omprakash Dash
Background
Overcharging and unclear billing practices in hospitals have become a major concern in India. Patients and their families often encounter financial strain due to unexpected and inflated medical costs. This is further complicated by communication gaps, language barriers, and the absence of standardised billing systems, making it difficult for patients to understand or verify their medical expenses.
Goal
The goal of this project is to investigate the issue of overcharging in Indian hospitals and develop recommendations for improving transparency and fairness in hospital billing practices.
Emergency Cases
Context
Started with one of the most frequent emergency cases in India which again causes problem if one tries to go to hospital after that.
Conclusion
After much research, I found this situation to be a very small part of a bigger issue.
Literature Review
Conclusion:
Hospitals taking advantage of the Lack of awareness.
Lack of authorities monitoring or tackling these kinds of situations are creating panic and dissatisfaction amongst people.
Resulting the money being extorted out of people’s pockets in their most vulnerable situation.
“The hospitals nowadays are focused on covering their extra costs by getting the most out of their patients. Creating and being successful in the healthcare business is the priority as there is NO BAR set of the cost of the services they are providing.”
-Dr. Suwarna S Deokar (BHMS Homeopathic Consultant) Sai Clinic Viman Nagar.
Result: It is really difficult for one to know which hospital or doctor they can trust and they will guide them appropriately..
Most affected ones are the people living in tier 2 & tier 3 cities of India.
India’s Ranking in Healthcare is way behind many big countries in the Prosperity Index.
Healthcare Service in other Countries
Insights
The index comparison highlights the urgency for India to improve its healthcare system, not just in quality but in patient-centered aspects like transparency, affordability, and trust.
Thailand outperforms India despite being a developing country. Thailand’s model can provide valuable lessons for India in improving affordability and access.
The USA and UK, with higher prosperity rankings, also score better in healthcare. While they face their own challenges like high costs (especially in the USA) and High Waiting Times in UK.
China, although also a large country with significant healthcare demands, scores better than India, indicating more efficient management of healthcare facilities and infrastructure
Competitive Analysis
Competitors before (getting/Looking for) treatment
Competitors after/during treatment
Service-Service Comparison
Insights
Overcharging Practices
Prevalence: Many hospitals in India engage in practices that lead to overcharging patients, often inflating costs significantly beyond what is reasonable.
Examples of Charges: Common overcharges include unnecessary tests, excessive fees for room services, and inflated prices for medications and procedures.
Impact on Patients: Patients frequently face unexpected bills that can lead to severe financial distress, especially for those who are already vulnerable or uninsured.
Unclear Billing and Lack of Transparency
Complex Billing Systems: Hospitals often use complicated billing formats that lack clarity, making it difficult for patients to understand what they are being charged for.
Standardization Issues: The absence of a standardized billing system across hospitals leads to inconsistencies, making it hard for patients to compare costs or verify charges.
Communication Gaps: Many patients do not receive clear explanations of their bills (Itemised Bills), contributing to confusion and mistrust.
Communication Barriers
Language Challenges: Patients may face language barriers that hinder their ability to communicate effectively with healthcare providers, complicating their understanding of medical bills.
Lack of Patient Education: There is often insufficient education for patients regarding how to interpret medical bills and what to expect in terms of costs.
Expert Insights
Dr. Suwarna S Deokar's Perspective: The expert emphasises that many hospitals prioritise profit over patient care, leading to practices that can compromise the quality of care.
Profit Motive: There is a suggestion that hospitals may focus on covering extra costs rather than providing transparent and fair pricing for their services.
Trust Issues in Healthcare
Difficulty in Finding Trustworthy Providers: Patients often struggle to identify hospitals or doctors they can trust, which is exacerbated by the lack of transparency in billing practices.
Impact on Vulnerable Populations: Individuals in tier 2 and tier 3 cities are particularly affected, as they may have fewer options and less access to reliable information.
Call for Reform
Need for Regulation: There is a pressing need for regulatory reforms in the healthcare system to ensure fair pricing and transparent billing practices.
Patient Advocacy: There is a call for greater advocacy for patients' rights to understand and contest unfair charges.
Interviews & Survey
Total Responses to the Survey: 50
Problem Statement
Patients often struggle with understanding hospital bills due to unclear breakdowns, hidden charges, and a lack of transparency, resulting in financial stress, mistrust in the healthcare system, and difficulty in making informed decisions about their medical expenses.
Ideation On FigJam
Features that will make you trust a facility and refer
Making People
aware about
Insurances and
making it easily
available to them.
My Bills option will
provide itemised
bills.
List of Hospitals
will be provided
based on trust
element.
Legal advice on
Fingertips.
Thank You
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© 2024 Omprakash Dash