Ludhiana: Privatisation move in healthcare may push families into debt, say doctors

Public health experts warn Punjab's healthcare privatization could worsen financial strain on families, urging increased government health funding.

Public health experts on Thursday cautioned that the proposed privatisation of state healthcare in Punjab could push more families into financial hardship, urging the government to increase its budgetary allocation for health immediately.

Experts highlighted that low public spending is already forcing citizens to incur “catastrophic” out-of-pocket medical expenses, and privatisation would exacerbate the crisis. . (HT File)

The warnings came during an interactive session on “Present Health Scenario in Punjab – The Way Forward,” jointly organised by Indian Doctors for Peace and Development (IDPD), PAU Employees Union, and PAU Pensioners and Retirees Welfare Association. Experts highlighted that low public spending is already forcing citizens to incur “catastrophic” out-of-pocket (OOP) medical expenses, and privatisation would exacerbate the crisis.

Dr Arun Mitra, president of IDPD, noted that India remains one of the lowest spenders on public health globally. Quoting NITI Aayog data, he said nearly 7% of the population falls into poverty annually due to OOP expenditure. He further stressed that poor nutrition—reflected in India’s 102nd rank out of 123 in the Global Hunger Index—makes people more vulnerable to illness. Mitra also pointed out that the government has failed to meet its target of raising public health spending to 2.5% of GDP, while the WHO recommends 6%.

Dr Indervir Singh Gill, member of IDPD’s central council, highlighted Punjab’s high OOP expenditure of 57%, far above the national average of 40%.

He noted that nearly half the sanctioned posts for general medical officers and specialists remain vacant, and the state allocates less than 2% of its budget to health. “Our health expenditure is just 0.7% of the state GDP, far below the 2.5% recommended by NITI Aayog,” he said.

Speakers sharply criticised the government’s plan to privatise civil hospitals and open new medical colleges under the public-private partnership (PPP) model, including those in Sangrur and Shaheed Bhagat Singh Nagar. They warned that this would raise costs for medical education and healthcare, disproportionately affecting low-income groups and senior citizens.

D P Maur, president of PAU Pensioners and Retirees Welfare Association, said senior citizens with no independent income would be worst affected.

M S Bhatia, general secretary of AITUC, Ludhiana, added that the government’s dilution of

the ESI scheme could have serious implications for workers’ health