It’s time to rebalance India’s healthcare spend by prioritizing preventive care

The India Union Health Ministry recently released the National Health Account (NHA) estimates for India 2021-22. One data point that caught my attention was the imbalance in healthcare spending. India’s healthcare spending is weighted heavily toward curative services, which creates long-term inefficiencies, strains hospital infrastructure, and increases healthcare costs. A shift toward preventive care offers a dual benefit—improving population health outcomes while reducing the economic burden on healthcare systems. The following explores three pressing issues from this breakdown:

• Inpatient care dominates resource allocation: Because hospital treatments are resource-intensive and costly, 38% of the current resources are allocated for inpatient curative services. Though inpatient services may be required for serious conditions, the figures indicate over-reliance on this service, implying a more reactive than proactive healthcare model focusing on treatment rather than disease prevention. A reallocation may free up resources for interventions that help avoid many hospital admissions.
• Low funding for prevention and ambulatory care: Preventive care, which encompasses initiatives such as health screenings, immunization programs, and public health education, currently receives 14% of total healthcare spending. Outpatient curative services—which encompass managing chronic diseases such as diabetes, heart disease, and hypertension—currently receive 15% of expenditure. This underfunding of preventive and ambulatory care undercuts India’s ability to manage long-term health conditions that are becoming increasingly prevalent in the population.
• Pharmaceuticals account for a comparatively large share: Pharmaceuticals and other medical goods account for 19% of the resources, which indicates a high dependence on medication. While medication is essential, a more balanced approach is needed—one that integrates medication management with preventive care and patient education—for better health outcomes and reduced dependency on healthcare.

The Bottom Line: India’s healthcare system is at a critical juncture, requiring a shift to prevention and long-term wellness.

A critical shift from curative to preventive care is essential for creating a resilient healthcare system in India. The future of healthcare lies in proactive, cost-effective strategies that enhance patient outcomes while easing the burden on hospitals and reducing long-term costs.