2015 · GS Paper 2 · Q12 · 12 marks

Public health system has limitations in providing universal health coverage. Do you think that the private sector could help in bridging the gap? What other viable alternatives would you suggest?

In short

The private sector can help bridge India's universal health coverage gap only as a regulated partner bought through public purchasing, alongside higher public spending and primary care. PM-JAY buys private hospital care, while NHP 2017 targets public spending of 2.5% of GDP.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Universal health coverage needs care for all without financial hardship, yet public spending near 1.1% of GDP (NHA 2014-15) left households bearing about 64% of health costs out of pocket in 2013-14. The private sector already handles most hospitalisations (NSS 71st round, 2014).
How the Private Sector Can Bridge the Coverage Gap
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Strategic Purchasing

PM-JAY (2018) buys private hospital care for poor families, building on Gujarat's Chiranjeevi Yojana (2005), which paid private obstetricians for deliveries of poor women.

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PPP in Service Gaps

The 108 ambulance network and the National Dialysis Programme (2016) run in PPP mode.

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Limits of Market Provision

Private care clusters in cities and profitable curative services, and weak adoption of the Clinical Establishments Act, 2010 left overbilling unchecked, as COVID-19 treatment bills showed.

Other Viable Alternatives for Universal Coverage
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Raise Public Spending

The Srinath Reddy HLEG (2011) and National Health Policy 2017 seek 2.5% of GDP.

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Strengthen Primary Care

Ayushman Arogya Mandirs with Community Health Officers prevent costly hospitalisation.

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Free Medicines

Tamil Nadu Medical Services Corporation's pooled procurement cuts the largest out-of-pocket cost.

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Pooling and Telemedicine

Extending ESIC to informal workers and scaling eSanjeevani widen reach.

Conclusion
The private sector can help, but only as a regulated partner purchased by the State, not a substitute for public provision. Thailand's tax-financed Universal Coverage Scheme (2002) shows that a strong public spine with strategic contracting delivers SDG 3.8 and the Article 21 right to health.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: Private Sector in UHC. Private Sector in UHC. Comparison of Can bridge and Cannot bridge alone
Diagram: Private Sector in UHC

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Question from the official UPSC Civil Services (Main) Examination 2015 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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