NEW DELHI: Revenue earned from foreign patients and affluent Indians should help fund treatment for poorer patients, a Parliamentary Standing Committee on Health and Family Welfare has recommended, proposing that corporate hospitals adopt a cross-subsidisation model to make advanced healthcare more affordable.The panel said hospitals that benefit from government concessions such as subsidised land, tax incentives and 100% foreign direct investment (FDI) should earmark part of the revenue generated from medical tourism and high-paying patients to provide advanced tertiary care to economically weaker Indians.The recommendation is part of the committee’s report on the affordability and accessibility of healthcare, which noted that India’s corporate hospital sector has recorded strong growth driven by high-value procedures, rising medical tourism and increasing revenue per occupied bed. While acknowledging India’s emergence as a global healthcare destination, the panel said the benefits of this growth must also reach patients who cannot afford expensive treatment.Observing that private health insurance penetration in India remains low and out-of-pocket expenditure continues to push many families into financial distress, the committee said a structured cross-subsidy mechanism could improve access to life-saving tertiary care for poorer patients. It said hospitals receiving government support should share part of the gains from medical tourism and premium-paying patients with economically weaker sections.The panel also recommended that corporate hospitals reserve a defined quota of beds under government-funded health insurance schemes such as Ayushman Bharat PM-JAY at standard package rates to ensure that beneficiaries have access to advanced treatment at leading private hospitals.Join conversationView All Comments →Share your thoughts in the commentsInsightfulAgreeDisagreeSkepticalConcerningPromisingWorth ReadingBig DevelopmentPost CommentBe respectful · TOI community guidelinesTo address the uneven distribution of healthcare infrastructure, the committee proposed linking government incentives, including subsidised land, tax benefits and FDI facilitation, to investment in tier-2, tier-3 and rural areas. It also recommended expanding public-private partnerships and extending financial and technology support to smaller hospitals in underserved regions.The recommendations form part of a broader roadmap to make healthcare more affordable. The committee has also proposed capping private hospital room rents in major metropolitan cities at the average tariff of nearby three-star hotels, standardising treatment package rates, improving price transparency and expanding government health spending to reduce out-of-pocket expenditure.Get the latest India News and Live updates. Download the TOI app.About the AuthorAnuja JaiswalAnuja Jaiswal is a Senior Assistant Editor at The Times of India, with an impressive 18-year career in narrative journalism. She specializes in health and heritage reporting, expertly simplifying complex health information to make it engaging and understandable for readers. Her deep dives into heritage topics are well-researched, resulting in captivating narratives that resonate with her audience. Over the years, she has worked in Chandigarh, Chhattisgarh and West UP, gaining diverse on-ground experience that shapes her storytelling.Read MoreEnd of ArticleFollow Us On Social MediaVideosThreat Letter Targets Kashmiri Pandits In Kashmir, Employees Asked To Stay Alert Amid Security FearChilling Crash Video: Atiq Ahmed’s Son’s Creta Flips After Losing Control On Highway | WatchUdhayanidhi Backs CM Vijay’s Tamil Nadu Delimitation Stand, Demands No Cut In State’s LS SeatsFCRA Bill Sent To 31-Member JPC Amid Opposition Protests, Akhilesh-Rijiju Clash Over MinoritiesRijiju slams opposition over parliament chaos, says ‘running away from debate’Explained: Why Amritpal Singh’s Party Fielded Son of Indira Gandhi’s Assassin In Punjab Elections?Prashant Kishor Promises Jobs For 10,000 Bankipur Youths After Ending BJP’s 30-Year Hold | WatchIndia’s Map Move Rattles China: What Naming 27 Places In Arunachal Means?Air India Phuket-Delhi Pilot’s Confirmatory Dope Test Reportedly Positive For Marijuana, Sources SayTamil Nadu Assembly Passes Anti-NEET Resolution As DMK, AIADMK And PMK Back Abolition Demand123PhotostoriesBirds that eat snakes: Nature’s unlikely serpent huntersKyunki Saas Bhi Kabhi Bahu Thi 2: From Smriti Irani to Amar Upadhyay, here’s how much the cast earns per episodeBeyond Payasam: Traditional South Indian sweets that deserve a tryPreity Zinta goes full royalcore in an Rs 42,500 fuchsia farshi salwar set for ‘Batwara 1947’ promotionsTaking multiple supplements every day? 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NEW DELHI: Revenue earned from foreign patients and affluent Indians should help fund treatment for poorer patients, a Parliamentary Standing Committee on Health and Family Welfare has recommended, proposing that corporate hospitals adopt a cross-subsidisation model to make advanced healthcare more affordable.The panel said hospitals that benefit from government concessions such as subsidised land, tax incentives and 100% foreign direct investment (FDI) should earmark part of the revenue generated from medical tourism and high-paying patients to provide advanced tertiary care to economically weaker Indians.The recommendation is part of the committee’s report on the affordability and accessibility of healthcare, which noted that India’s corporate hospital sector has recorded strong growth driven by high-value procedures, rising medical tourism and increasing revenue per occupied bed. While acknowledging India’s emergence as a global healthcare destination, the panel said the benefits of this growth must also reach patients who cannot afford expensive treatment.Observing that private health insurance penetration in India remains low and out-of-pocket expenditure continues to push many families into financial distress, the committee said a structured cross-subsidy mechanism could improve access to life-saving tertiary care for poorer patients. It said hospitals receiving government support should share part of the gains from medical tourism and premium-paying patients with economically weaker sections.The panel also recommended that corporate hospitals reserve a defined quota of beds under government-funded health insurance schemes such as Ayushman Bharat PM-JAY at standard package rates to ensure that beneficiaries have access to advanced treatment at leading private hospitals.
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To address the uneven distribution of healthcare infrastructure, the committee proposed linking government incentives, including subsidised land, tax benefits and FDI facilitation, to investment in tier-2, tier-3 and rural areas. It also recommended expanding public-private partnerships and extending financial and technology support to smaller hospitals in underserved regions.The recommendations form part of a broader roadmap to make healthcare more affordable. The committee has also proposed capping private hospital room rents in major metropolitan cities at the average tariff of nearby three-star hotels, standardising treatment package rates, improving price transparency and expanding government health spending to reduce out-of-pocket expenditure.
