NITI Aayog: Study on ‘Not-for-Profit’ hospital model

NITI Aayog released a comprehensive study on not-for-profit hospital model in India on June 29, 2020.


  • According to NITI Aayog, it is a step of closing information gap on such institutions.
  • This study was conducted in the backdrop of low investment in expansion of health sector in private sector.
  • Report provides insight into operation model of not-for-profit hospitals.

Findings of report

  • NITI Aayog highlights the growing disparity between hospitalisation cases in for-profit and not-for-profit hospitals.
  • As per report, not-for-profit hospitals account for 1.1% of treated ailments, as of June 2018.
  • for-profit hospitals account for 55.3% of in-patients. On the other hand, not-for-profit hospitals account for 2.7% of in-patients in India.
  • Cumulative cost of care at not-for-profit hospitals is lower than for-profit hospitals by one-fourth with respect to in-patient department.
  • This low cost is reckoned by package component of cost, which is about 20% low.
  • Doctor’s or surgeon’s charges are 36% lower while bed charges, which are approximately 44% lesser than for-profit hospitals.
  • Cumulative cost of OPD care across not-for-profit hospitals is about one-third lower than in private for-profit hospitals.

NSS 75th round data

According to this data, not-for-profit hospitals provide medicines to patients at 26% lesser than for-profit hospitals. It also highlights, doctor’s fees are about 18% lesser in not-for-profit hospitals.

Way Forward

NITI Aayog calls to strengthen not-for-profit hospitals by giving 100% income tax exemption for donations, fast release of dues from government schemes and grants. Not-for-profit hospitals be allowed to utilize primary health care (PHC) infrastructure to take health care in rural India.


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