In a recent Lancet study, the researchers, led by those at the University of Oxford, UK, studied an increase in private providers and measuring quality of care, which eventually affects health outcomes.
The analysis states that privatization of healthcare never had a positive effect on the quality of care, and was associated with higher profits. This analysis reviewed previous studies of high-income countries (HICs) like the US, Germany, Canada, and South Korea.
The authors also found that higher levels of hospital privatization were associated with higher rates of avoidable deaths.
Profits converting from publicly owned to privately owned hospitals come from reducing staff and the number of patients having limited health insurance coverage.
The study is published in The Lancet Public Health journal. It has challenged the theory that privatization is useful in enhancing the quality of healthcare through increased market competition, and by enabling a more flexible and patient-centered approach.
Additionally, the authors also found evidence suggesting a risk that governments seek short-term reductions at the expense of long-term outcomes.
There is a risk, however, that seeking short-term reductions can come at the expense of long-term outcomes since outsourcing services to the private sector does not seem to deliver both better care and cheaper care.
Aaron Reeves, Co-author (Department of Social Policy and Intervention, University of Oxford)
There are many forms of privatization, outsourcing of services is one of them in which a publicly-funded service maintains the decision-making powers but contracts a private organization for fulfilling agreed services.
However, the researcher found it contradictory in their study. They found that outsourcing services worsens the health outcomes of patients.
In this research, the composition of key national health committees of India was analyzed in the span of 1943 and 2020, for representation of the members & leaders.
According to a health policy and systems researcher, Vikash R.Keshri, the study is "very much relevant" to India, which is a low- and middle-income country.
Keshri is the corresponding author of a study that looked at actors driving national health policy.
As the HICs with their robust regulation and governance could not optimize the private sector for equitable healthcare, the LMICs with not-so-strong regulation and institutional framework are expected to struggle.
Vikash R.Keshri, Health Policy and Systems Researcher
We found that the majority of members of the national health committees were from government departments or institutions. This, we believe, is restrictive as it prevents wider consultations and diversity of opinion. Lately, there has been over-centralization of the health policy process dominated by actors based in Delhi. They command disproportionate authority in policymaking.
Vikash R.Keshri, Health Policy and Systems Researcher
The health policy researcher stated that the COVID-19 pandemic reiterated the significance of strong public health systems.
Lastly, the authors also emphasized the need for stronger regulations that must be placed in the private sector in times of crisis.
(Rehash/Dr. Pragati Priya/MSM)
