Is rising pharma market a new burden? Introspecting the implications of India’s healthcare journey from public to a private good

Abstract

PurposeThe paper demonstrates prejudicial effects of the rising private participation and the lacuna of state in ensuring the accessibility and affordability of healthcare.Design/methodology/approachSecondary data analysis from national and international databases is employed to demonstrate the low government spending and the alternate healthcare financing mechanisms in the country. The company reports of six Indian pharma companies are examined to map the profits and revenues, and also taking into account the sales growth and return on investment.FindingsThe paper observes the pharmaceutical sector, via its spiralling drug prices, is the primary contributor to the huge out-of-pocket expenses borne by households. The study findings indicate that there is an increased divergence between the out-of-pocket expenses of households and exorbitant profits of the private drug companies in the country over the years.Research limitations/implicationsAmidst debates on the importance of public health in the aftermath of the pandemic, the paper examines the rising hands of private sector in healthcare, and implores – who benefits? The authors study the implications via looking into the rise in the wealth of pharma giants; at the time of crisis when the lives of common citizens in the country were at stake.Originality/valueThe paper emphasises the repercussions of the higher markup of the pharma industry in raising the healthcare costs of households. The authors emphasise that the nonregulation of the pharma sector leads to high medical debts/poverty, in the wake of growing out-of-pocket expenditures of the citizens.

IJHG Review 28.2

“…Governments' responses vary according to both resources and political philosophy, yet all governments must make some adjustments in terms of additional financial support to businesses and individuals. While the authors examined these issues from the perspective of Iran's state oil economy, some of the lessons learned will have a wider application in forecasting scenarios to help economists and health professionals prepare for future health shocks.This review is based on: Boddu and Tobi (2023) is rising pharma market a new burden? Introspecting the implications of India's healthcare journey from public to a private good…”

“…This review is based on: Boddu and Tobi (2023) is rising pharma market a new burden? Introspecting the implications of India's healthcare journey from public to a private good…”

“…However, in the area of healthcare, India lags behind, ranking 145 out of 195 in the Lancet's healthcare quality and accessibility index. Boddu and Tobi (2023) attribute this largely to the lack of public sector involvement in healthcare. Indian citizens are driven to access the private sector for lack of alternatives.…”

“…The COVID-19 pandemic exacerbated existing problems in the Indian healthcare system, with the WHO reporting that India had approximately 50% of global COVID infections, with 30% of the world's deaths (Boddu and Tobi, 2023). The Indian pharmaceutical industry is a success story with high-income generation from diagnostic laboratories and drug production.…”