Why hospital treatment costs more in Telangana? Parliamentary panel points to private sector

A parliamentary standing committee has highlighted the rising cost of hospital treatment in Telangana, attributing it largely to the expansion of the private healthcare sector and shortcomings in public health infrastructure. According to the committee's report titled ‘Affordability and accessibility on healthcare facilities in public and private sector,’ an average hospitalisation episode in the state costs approximately ₹55,000, making it one of the most expensive regions in the country for medical care. This figure contrasts sharply with states such as Odisha, where the cost is around ₹22,000, and Ladakh, which averages about ₹8,000 per hospital stay. The findings were based on data collected during the 80th round of the National Sample Survey on Household Social Consumption: Health, conducted by the National Statistics Office between January and December 2025. The survey revealed that the average cost of hospitalisation in Tamil Nadu stands at ₹52,000, while in Kerala and Karnataka, it ranges from ₹40,000 to ₹45,000. These figures underscore the regional disparities in healthcare expenditure, with Telangana remaining at the upper end of the spectrum. The report warns against assuming that lower healthcare spending equates to greater affordability or better access to care. It notes that reduced expenditures might instead indicate limited availability of medical facilities, low usage of health services, or the necessity for individuals to choose less costly options due to financial constraints. The committee stressed that these factors must be carefully considered when evaluating the overall quality and accessibility of healthcare in different parts of the country. A central issue identified by the committee is the growing dominance of private healthcare providers in Telangana. The report highlights that the cost of hospitalisation in a private facility is significantly higher than in government-run hospitals. Specifically, the average cost in a private hospital is estimated at ₹50,508, compared to ₹6,631 in public institutions. This disparity is especially pronounced in cases involving complex conditions such as cancer, heart disease, and kidney failure, where private treatment can be five to ten times more expensive than public alternatives. The committee attributed the strain on public healthcare systems to several critical challenges, including insufficient bed capacity, shortages of qualified medical staff, and overcrowded facilities. These issues have led many patients to seek care in private hospitals, often due to unmet demand in government-run centres. To address these problems, the report recommends expanding the number of beds and specialist doctors in public hospitals, particularly in densely populated urban areas. It also calls for ensuring that essential medications, diagnostic tools, and modern medical equipment are consistently available in public facilities, thereby reducing the need for patients to rely on private care for even routine procedures. In Hyderabad, Dr. Ranga Reddi Burri, president of the Infection Control Academy of India, expressed concern over the erosion of the traditional family physician and referral system. He noted that this system has effectively collapsed, leading patients to bypass primary care and directly approach specialists for even minor ailments. As a result, primary healthcare centres remain underused, while tertiary hospitals face severe overcrowding. Dr. Burri argues that the lack of a structured referral network between different levels of care contributes to increased costs and potential delays in diagnosing and treating patients. The situation reflects broader systemic challenges in healthcare delivery, with implications for both affordability and quality of care. While the committee has outlined recommendations aimed at improving public healthcare infrastructure, the implementation of these measures will determine whether the current trends in rising costs can be reversed. For now, the findings serve as a clear indication of the urgent need for reform in how healthcare services are managed and delivered in Telangana.