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Healthcare Costs: What's the Real Price of Care?
18 Aug
Summary
- NABH accreditation standards offer a starting point for care costs.
- Cost accounting at CMC breaks down every expense of patient care.
- Accurate economic assessments should include all facility types.
Assessing the actual cost of healthcare requires a nuanced approach, distinguishing between compliance expenses and effective care delivery. Dr. Gagandeep Kang emphasizes that accreditation standards, like those from NABH, can provide a foundational understanding of expected costs and services in healthcare facilities.
Institutions like Christian Medical College (CMC) employ a detailed "cost accounting" system. This method dissects every component contributing to patient care costs, including room charges, staff time, and operational expenses, offering a comprehensive view beyond just drug prices.
Recent parliamentary reports have pointed to substantial cost disparities between private and public hospitals. Kang argues for regular, perhaps quinquennial, economic assessment exercises involving various institutions, including business schools and IITs, to establish transparent cost structures and build public trust.
Such scientific cost breakdowns can reveal whether pricing is rational or exploitative. While public facilities are government-supported, a thorough economic evaluation should encompass all healthcare providers to understand the true cost differential, potentially including a reasonable profit margin.
