Cochin: Health experts attribute the rising hospitalisation costs in Kerala to several factors, including changing demographics and a shift in disease patterns. A significant portion of the population is being diagnosed with lifestyle diseases at an early age, and the state’s rapidly aging population is further increasing healthcare costs. Additionally, there is a clear preference for private hospitals over government facilities, and fewer than 15% of the population has medical insurance.
According to health economist Arun Nair, Kerala has experienced high out-of-pocket expenditures for hospital treatment compared to other states for the past two decades. He noted that this high expenditure is not limited to inpatient care but also includes outpatient care, such as medications, diagnostic tests, and laboratory services. However, in recent years, more people have been shifting towards the public health system due to various government reforms aimed at improving healthcare accessibility.
Experts suggest several ways to reduce these healthcare costs, including increasing government investment in primary healthcare, focusing on the prevention of non-communicable diseases, and enhancing the infrastructure and workforce in public secondary and tertiary care services. Additionally, regulating the profiteering in the private healthcare sector is deemed necessary to curb rising costs.
Dr. Padmanabha Shenoy, a clinical immunologist and rheumatologist, explained that although hospital treatment costs in Kerala are lower compared to metro cities, the high life expectancy and early diagnosis of lifestyle diseases necessitate prolonged treatment, leading to high annual hospital expenses. He also emphasized that Kerala’s high literacy rate contributes to greater healthcare awareness, which in turn leads to more healthcare-seeking behavior, further influencing healthcare spending.
