Measurement of Efficiency of Hospital Care in Terms of Patients’ Health Expenses

In the globalized and liberalized India, it has been observed that there is a rapid growth in healthcare with the increase of private participation (Shah and Mohanty, 2010). Private healthcare providers put much importance on the quality of healthcare services in order to ensure patients' satisfaction (Shabbir et.al. 2010). Private hospitals, as they are not subsidized, have to depend on income from their clients and ensure the satisfaction of their clients by providing superior quality of health care (Andaleeb et. al. 2007). The privatization of healthcare sector and the continual augmentation of quality of the service cause the rise of healthcare expenditure which has become a financial burden for Indian households (Wagstaff et.al.2003, Xu et.al.2005, Van Doorslaer et.al.2006, Berman et.al, 2010). The experience of rising health expenses has led to a serious repercussions among Indian households (Wagstaff, and Van Doorslaer 2003, Xu et.al. 2005, Van Doorslaer et.al. 2006). Most of the Indian households attain fund to finance their health expenses by selling or mortgaging their assets or borrowing money from money lenders (Sauerborn et. al.1996, Kabir et.al., 2000, Russell S. ,2005).