Institute of Health Systems


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About IHS



Health Care Financing and Expenditure of Non-Profit Organizations in India

The National Health Policy (NHP 2002), emphasizes the need for improved and comprehensive information through national health accounts and accounting systems and sought to establish national health accounts, conforming to the `source-to-users’ matrix structure, by 2005. The Central Ministry of Health and Family Welfare has constituted a “NHA cell”, which is working towards institutionalizing the NHA process in the country. This study was commissioned by the Ministry of Health and Family Welfare and the WHO to fill in a crucial data gap of the NHA exercise[1]. The objective of the study was to: (1) Outline the methodology and procedures for estimation of total health spending by NGOs in the country (2)  provide national level estimates for the years 2001-02 and 2002-03, of: (a) Revenues of NGOs by source of funding (b) Health expenditure of NGOs; and (3) Application of the NHA framework to trace the flow of funds for health care through NGOs. A database of health care NGOs was prepared and a thousand organizations were randomly selected for the study. Field visits were made to 5 states, one in each geographical region; Delhi , Tamil Nadu, Maharashtra , Assam and Orissa. Data on financing and expenditure including audited reports and FC-3 reports were collected. Data for other states were collected via a mailed survey and telephonic follow-up. Household were the major source of funds of NGOs (about 42%). International agencies, central government and the state government contributed 26%, 12% and 6% of the funds respectively. Other sources of funds included: private firms, PRIs, financial agencies and own resources of NGOs. About 42% of the funds were spent on curative care services and 24% on disease prevention and health formation. The remainder was spent on research and training, dispensation of medical goods, provision of ancillary services and capital formation[2]. The study provided inputs to the NHA prepared for the country by the MoHFW. The study began in June 2005 and was completed in January 2006

[1]WHO India Allotment No.: SE IND GPE 002 RB 04 (Sticker No. SE/05/205858),dt: 15/04/2005

[2]C.K. George , N.S. Reddy and G.S.Pattnaik, Health Financing and Expenditure of the Nonprofit Sector in India , Report Prepared for World Health Organization: IHS RP 33/2006


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