Bhubaneswar: Odisha has emerged as one of the least expensive states in India for hospitalization, with patients spending less than half the national average from their own pockets. According to the latest National Sample Survey (80th round) on Household Social Consumption: Health, the average out-of-pocket medical expenditure (OOPME) per hospitalization case, excluding childbirth, stood at Rs 16,948 in Odisha, compared to the national average of Rs 34,064. The state ranked among the lowest in the country in terms of direct expenditure borne by patients and their families.
Survey Details and Coverage
The survey, conducted by the Ministry of Statistics and Programme Implementation, covered 5,288 households across rural and urban Odisha last year. In healthcare, OOPME refers to expenses paid directly by patients or families at the time of receiving hospital care, without insurance reimbursement. This includes costs for diagnostics, consumables such as gloves or syringes, doctor fees, and medicines. Medical institutions were classified into three categories: government/public hospitals, private hospitals, and charitable/trust/NGO-run hospitals.
Striking Findings for Government Hospitals
The findings are particularly notable for treatment in government hospitals. Patients spent an average of Rs 2,496 per hospitalization in government-run facilities, one of the lowest among all states and Union Territories. This amount is significantly below the national average of Rs 6,631. Even in private hospitals, where treatment costs are substantially higher, Odisha's average expenditure of Rs 40,753 remained well below the national average of Rs 50,508.
Expert Insights on OOPME
Healthcare experts noted that OOPME reflects how state governments fund their healthcare systems and the overall financial protection available to people. They stated that if a government hospital is adequately funded, patients need not spend much except perhaps on food and travel.
Rural-Urban Divide in Healthcare Spending
The NSS also highlighted a rural-urban divide in healthcare spending. While the average expenditure per hospitalization was Rs 15,708 in rural Odisha, urban residents spent an average of Rs 22,675. "Higher dependence on private healthcare facilities in urban areas contributes to this difference. Urban patients spent about 44% more than rural patients, mainly because urban residents were more likely to use private facilities, where average expenditure generally exceeds Rs 50,000 per admission. Such rural-urban disparities are visible across India," said healthcare expert Niranjan Mishra.
Comparison with Previous Survey
A comparison with the previous 75th round of the NSS on Health (July 2017 to June 2018), whose findings were released in 2022, shows a significant shift in expenditure patterns. The OOPME in Odisha for public hospitals was Rs 5,283 during the previous survey, while that for private hospitals stood at Rs 30,947.
Government Initiatives
Mishra said that as about 70% of the state's population depends on public health facilities, the government has been significantly scaling up public health spending in recent years to strengthen primary, secondary, and tertiary care infrastructure, besides providing universal health assurance coverage. He noted that the state is providing free diagnostics, medicines, transport, and tertiary care support to patients. The health sector outlay has nearly tripled from Rs 9,500 crore in 2020-21 to Rs 23,182 crore in 2026-27, accounting for over 7.5% of the state's total budget.
