Local Needs, Choices and Circumstances

Beyond obvious choice for private sector, the best public-private balance for a country depends on its local culture and circumstances. An appropriate division of the health care system between the public and the private sector can be determined only after an evaluation of how the economic incentive will operate. For instance, the extent of private sector participation will be influenced by the rewards for community spirited activity. One element of local circumstance is corruption of the functionary which needs to be checked.

Although it can be argued that private sector does not ensure equity, with proper incentives they can provide acceptable access to preventive and curative care. In recent times, the private sector care is spreading across the country beyond the urban limits. High operating cost of the public health care system and its failure to achieve efficient delivery are the reasons behind the fast growth of the private sector.