A recent survey by the National Statistics Office (NSO) has revealed that Telangana is the most expensive state in India for hospitalisation across several major disease categories. The state leads the country in treatment costs for heart ailments, infections, injuries, and eye conditions, while consistently ranking among the top three to five most expensive states for a wide range of other illnesses.
Highest Treatment Costs in Telangana
The NSO data shows that Telangana tops the list for four key disease categories. Treatment for heart diseases costs an average of Rs 95,095, which is 70% higher than the national average. Infections cost Rs 24,496 (56% higher), injuries cost Rs 77,518 (54% higher), and eye conditions cost Rs 28,897 (77% higher).
For six other disease groups, Telangana ranks among the top three or five most expensive states. Cancer treatment averages Rs 94,047 (20% higher), blood diseases cost Rs 38,258 (82% higher), endocrine and metabolic disorders cost Rs 50,000 (60% higher), psychiatric and neurological disorders cost Rs 79,769 (61% higher), genito-urinary conditions cost Rs 45,000 (55% higher), and other diseases range from Rs 35,000 to Rs 40,000 (50% to 60% higher).
For the remaining seven ailments, including respiratory, gastrointestinal, musculoskeletal, maternal care, and childbirth-related hospitalisation, healthcare costs in Telangana are consistently above the national average, typically 40% to 80% higher.
Out-of-Pocket Expenditure and Healthcare System Issues
Health experts attribute the high costs to a greater reliance on private healthcare facilities, higher procedure costs, and increased use of advanced diagnostics and treatments. Dr Burri Ranga Reddy, a senior public health expert, described India, including Telangana, as a classic case of the 'missing middle' in healthcare delivery. Over-reliance on high-cost corporate hospitals and under-capacity in the government health sector force patients into expensive treatment pathways even for moderate conditions.
'We are witnessing the financialisation of healthcare, where medical decisions are increasingly influenced by return-on-investment expectations. Cost escalation is driven less by bed charges and more by diagnostic intensity and protocol inflation. Advanced diagnostics do not always translate into better outcomes. Overuse of MRI, CT scans, and endoscopy is flagged as a cost-escalating factor in some corporate hospitals,' Dr Ranga Reddy added.
The Telangana Socio-Economic Survey 2026 indicates that nearly 10% of household loans in the state are taken for health-related expenses, most arising from emergencies. 'When 10% of loans are for healthcare, it signals systemic failure, not individual affordability issues. While Hyderabad is attracting global patients for affordability, the same is becoming unaffordable for its own residents,' said Dr Ranga Reddy.
Systemic Pricing Problems and Lack of Regulation
Dr Karthik Nagula, president of the Telangana Healthcare Reforms Doctors Association (HRDA), said the findings highlight the harsh reality faced by patients, many of whom leave hospitals in financial distress. 'High treatment costs across unrelated diseases point to systemic pricing problems in the private sector, driven by poor price transparency, unchecked billing, heavy reliance on corporate hospitals, and weak public healthcare infrastructure,' he added.
He also flagged growing commercialisation, where treatment decisions are sometimes influenced by profit motives rather than patient needs, along with the lack of strict regulation on procedure and package costs, which continues to increase the burden on patients.
Heart Disease: The Costliest Illness
Cardiovascular diseases, the leading cause of death in India (nearly 31% of all deaths), are also the costliest to treat in Telangana. A heart ailment admission in a private hospital costs Rs 95,095, around 70% higher than the national average of Rs 55,870. Notably, Telangana is the only state where heart disease treatment costs exceed cancer care, which averages Rs 94,047. This reverses the pattern seen across the rest of the country, where cancer is typically more expensive. Tamil Nadu leads the national chart for private hospital cancer admissions at Rs 1.35 lakh (72% above the national average of Rs 78,657), followed by Delhi at Rs 1.33 lakh.
Diabetes, a condition closely linked to heart disease, is highly prevalent in Telangana, with Hyderabad being dubbed one of the diabetes capitals of India. Dr D Srinath, president of the Telangana Senior Doctors Residents Association, noted that lifestyle habits in Telangana are a major reason for the rising number of heart cases. 'Treatment costs are increasing mainly because there are very few cath labs in government hospitals, forcing patients to depend on private hospitals. These private facilities often charge high fees, with limited regulation or monitoring of costs by the government,' he added.
Proposed Solutions
To address rising healthcare costs, health experts emphasise a multi-pronged approach: strengthening public hospitals, regulating and standardising private treatment costs, and mandating transparent billing. Dr Nagula suggested that the government should expand schemes like Aarogyasri with realistic coverage and enforce regular audits of private hospitals. Dr Ranga Reddy recommended that Hyderabad requires a balanced three-tier system with strong primary and secondary care and an effective referral network to reduce overdependence on costly tertiary care and keep healthcare affordable.
