This report is the result of the collaborative efforts of the Institute of Health Systems (IHS), Hyderabad and the AP First Referral Health System (APFRHS) Project based at the AP Vaidya Vidhana Parishad (APVVP) office. 

The Institute has been actively studying various aspects of the private health sector, with special emphasis on standards and quality assurance. To enable research and study of the private health sector the Institute has built up a computerised database of health institutions in AP. The private hospitals and nursing homes component of this database was incorporated in 1993 and was further validated in 1994. The Institute has been researching about the feasibility of accreditation systems in India and Andhra Pradesh in particular including development of minimum standards for reproductive services delivered by private hospitals and nursing homes etc.

Recognising the inadequacy of facilities for first referral health care the APVVP is implementing the AP First Referral Health System Project funded by the World Bank, to augment first referral hospital stock in the public sector. The project also seeks to facilitate formulation and implementation of suitable policies for development of the private health sector and thereby improve the overall health care facilities of the state. Consequently the APFRHS project commissioned the IHS to take up a set of rapid studies and take stock of the private health sector in Andhra Pradesh and identify appropriate policy choices to improve their overall development. These studies include on going work pursued by the IHS on a long term basis and also on short duration studies taken up to meet the requirement of the APFRHS project. As a part of this study a workshop was organised in May 1998, with participants from the private health sector and public health officials. Result of the studies spearheaded by IHS were presented in the workshop and various issues were discussed. 

This report is the result of studies culminating in the workshop on the Private Health Sector in Andhra Pradesh, May23-24, 1998. Although the studies and workshop were organised in the context of Andhra Pradesh state, the issues, findings and solutions proposed here are relevant to the health systems of all states in India as well as many other developing countries.

Editors