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  SDPH Executive Summary ...
    

Financial aspects of private health care institutions

Direct payment by patients is currently the primary source of revenue for private HCIs in AP. Employer reimbursement, and health insurance payments are yet to be important sources of income for private HCIs. The increasing trend of patient fees suggests that the growth in private health care institutions will continue for some more time. If the environment for employer reimbursement improves and health insurance schemes expand, growth of the private health sector may gain additional impetus for growth. Patient revenue income also appears to be the dominant source of financing of capital investment in private health care institutions. More than half of the owner-mangers reported that they did not require a loan. Those who needed, took loan mostly from commercial banks, and some took loan from relatives and friends. Although some credit market difficulties like too much paper work, unrealistic collateral, etc. are experienced, owner-managers were not deterred by these to take loans if they needed them to start or develop their health care institutions. Data on rates and charges for commonly delivered clinical and diagnostic services, collected from HCIs and diagnostic facilities are presented. Majority of private HCIs operate with unpublished tariffs for their services. It will be desirable to require private HCIs to publish service charges for commonly encountered and well defined services, to bring about some openness in billing practices. The level transparency Although almost all private HCIs claimed to have some fair financing arrangement for poor patients, these are mostly informal and ad-hoc. These informal arrangements of free care or discounted fees based on doctor’s discretion would benefit some poor and needy patients, but is incapable of meeting the needs of most of them.


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