Public Subsidy and Private Sector

The promotion of Medical Tourism in India has larger public health implications, which are not visible to the general public and even to the senior physicians working in Public and Private Hospitals. Very few have the critical understanding of how the public subsidies are going into building of these posh corporate hospitals (Sengupta 2008; Qadeer and Reddy 2013). Majority of them believe that private sector has nothing to do with treating the poor masses and it is the state responsibility. Private Sector is purely for profit business venture and should be treated like one.

The critical public health perspectives on corporate health care show that these hospitals have been established with the support of the State. Given the business proposition and private nature, these hospitals should have been built on their own without state subsidy. But if the subsidy is given, it needs to return back either services or profits to the state. Instead, the state is buying health services from the private sector, after giving all the subsidies, in terms of land lease on throw away prices, tax exemptions on import of technology, and also tax exemption in registering as health research institutes.

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