Historical Analysis of The Development of Health Care Facilities in Kerala State, India
Historical Analysis of The Development of Health Care Facilities in Kerala State, India
HEALTH POLICY AND PLANNING; 15(1): 103–109 © Oxford University Press 2000
Kerala’s development experience has been distinguished by the primacy of the social sectors. Traditionally,
education and health accounted for the greatest shares of the state government’s expenditure. Health sector
spending continued to grow even after 1980 when generally the fiscal deficit in the state budget was growing
and government was looking for ways to control expenditure. But growth in the number of beds and insti-
tutions in the public sector had slowed down by the mid-1980s. From 1986–1996, growth in the private sector
Public sector spending reveals that in recent years, expansion has been limited to revenue expenditure rather
than capital, and salaries at the cost of supplies. Many developments outside health, such as growing liter-
acy, increasing household incomes and population ageing (leading to increased numbers of people with
chronic afflictions), probably fuelled the demand for health care already created by the increased access to
health facilities. Since the government institutions could not grow in number and quality at a rate that would
have satisfied this demand, health sector development in Kerala after the mid–1980s has been dominated
by the private sector.
Expansion in private facilities in health has been closely linked to developments in the government health
sector. Public institutions play by far the dominant role in training personnel. They have also sensitized
people to the need for timely health interventions and thus helped to create demand. At this point in time,
the government must take the lead in quality maintenance and setting of standards. Current legislation,
which has brought government health institutions under local government control, can perhaps facilitate this
change by helping to improve standards in public institutions.
expenditure on health; the current pattern of distribution of Health sector development in Kerala
health care facilities in the public and private sectors; and the
At the time of formation of the present Kerala state on 1
implications arising from these for the state’s future health
November 1956, the foundation for a medical care system
development. The paper is divided into four sections: (1) a
accessible to all citizens was already laid. One indicator of the
summary of the historical milestones in the growth of modern
government’s commitment to health services provision is the
medical care in Kerala; (2) health sector growth in Kerala
proportion of government expenditure set apart for health.
after the state’s formation in 1956; (3) current patterns of
From the time of the state’s formation, the government’s
distribution of health care facilities in the public and private
budget allocation for health was considerable. Social sectors,
sectors; and (4) the policy concerns arising out of these.
mainly comprising education and health, accounted for a
large share of the government development expenditure. The
History of western medical care in Kerala period from state formation to the early 1980s was character-
ized by great growth and expansion of the government health
Kerala has a long history of organized health care. Before the
services. Figures show the annual compound growth rate of
advent of European medicine, families of practitioners of
government health care expenditure for the period at 13.04%
Table 2. Total revenue expenditure, expenditure on health and revenue deficit as a proportion of total revenue expenditure in Kerala from
1985–86 to 1995–96
Table 3. Average annual expenditure by government on health one estimate, 22 out of 26 CT scan centres in Kerala were in
supplies in Kerala, in constant rupees (millions), under primary, the private sector in 1995.9
secondary and tertiary sectors, and growth of expenditure in these
sectors
Many factors outside the health sector could have facilitated
the growth in the private sector. Two of the most important
Period Primary Secondary Tertiary are rising disposable incomes and the lack of barriers to
sector sector sector
opening a private hospital. While on the one hand the state
government was under the pressure of fiscal difficulties, there
(i) 1977–78 to 1979–80 –24.58 86.63 37.05 is some evidence that household disposable income was rising
(ii) 1980–81 to 1984–85 –26.16 104.39 41.87 steadily. Calculations based on data from household con-
% change from (i) to (ii) – 6.4 20.5 13.0
(iii) 1985–86 to 1989–90 –25.71 113.22 57.41
sumer expenditure surveys in 1977 and 1993 show that while
% change from (ii) to (iii) –1.7 8.5 37.1 in 1977, 50% of the population accounted for just over 20%
(iv) 1990–91 to 1992–93 –21.52 101.02 56.7 of the state’s total consumer expenditure, their share
% change from (iii) to (iv) –16.3 –10.8 –1.2 increased to over 30% in 1993 (Figure 2). Greater disposable
Table 4. Cost of medical and public health services in Kerala and percentage of subsidies involved, 1977–78 and 1989–90 (million rupees)
Table 5. Growth of private medical facilities in the western medical All told, there are around 1.5 insitutions per 10 km2 in the
sector in Kerala, 1986–95 modern medical sector. Geographical density of private hos-
pitals (hospitals/10 km2) in the districts is highly correlated
1986 1995 growth with both literacy (Spearman r = 0.79, p < 0.01) and geo-
(n) (n) (%) graphical density of government hospitals (Spearman r =
0.85, p < 0.01). The latter correlation is not surprising since
(1) Institutions with beds 1864 1958 5.0 both government and private hospitals tend to congregate in
(2) Number of beds 49 030 67 517 37.7 areas of high population density. Geographical density of
(3) Institutions without beds 1701 2330 37.0 private hospitals is also correlated with density of beds
(4) Doctors 6345 10 388 63.7 (number per 100 000 population) in the government sector
(5) Paramedics 13 921 25 256 81.4
(Spearman r = 0.73, p < 0.01). Thus private hospitals have
been established in districts with high investment in the public
Source: Government of Kerala.8 sector.
Policy lessons
The growth of health facilities in Kerala offers many lessons
in development. The active role of the state government has
Figure 2. Distribution curve of monthly per capita consumer
expenditure in the years 1977 and 1993 in Kerala been a key factor in the expansion of health care facilities.
Sources: Government of Kerala, Statistics for Planning 1980;12 The initial period of rapid growth in health facilities was
Government of Kerala, Statistics for Planning 1988;13 ‘Sarvekshana’ dominated by the public sector, up to the 1980s. By the mid-
Journal of the National Sample Survey Organization 1996 1980s, because of fiscal and other problems, there was a slow-
down in the growth of government health institutions. This
affected not only the growth in absolute number of beds, but
indicating the proliferation of facilities in the private sector. probably the maintenance of quality as well. However, by this
Density of beds in the private sector has a high correlation time, the private sector was poised for growth and it took the
with literacy (Spearman r = 0.64, p < 0.05) and with per capita lead in the growth of health care facilities in Kerala. The
income in the district (Spearman r = 0.60, p < 0.05). This is not growth of the private sector in Kerala should not be seen as
surprising since both these variables are known to be associ- an independent phenomenon. The public sector paved the
ated with growth of demand for health care. way for its development by sensitizing the population to the
Table 6. Acute illness reported in the last 14 days (episodes per 100 persons), chronic illness lasting >3 months (persons affected per 100)
and average per capita health expenditure in the preceding 14 days in rupees, in a household health survey in Kerala, 1993–94
Acute illness in the last 14 days (per 100 persons) 5.96 9.40
Chronic illness lasting >3 months (per 100 persons) 5.55 22.38
Average medical care expenditure per affected person in the last 14 days (rupees) 102.47 165.78
Table 7. Distribution of government and private health care facilities by district, Kerala
Table 8. Factors affecting the growth of health services in the government and private sectors, Kerala
(1) Growth of education, especially female education and (1) Tradition of government-provided health care services
awareness about health related matters (2) Government policy that continued to fund health sector even
(2) Settlement patterns and growth of roads and communication during times of financial stress
favouring easy accessibility (3) Subsidized medical and nursing education supplying a steady
(3) Government provided facilities sensitizing the public to the need stream of personnel
for sophisticated care (4) Comparative lack of regulation that made health sector
(4) Enhancement of income for a good proportion of households attractive as an investment opportunity
(5) Access to funds for investment: foreign charities, repatriation
from gulf countries, and industrial credit
need for sophisticated care and creating demand. The protection act (COPRA). More and more cases of alleged
government continues to play a leadership role in the training malpractice or negligence are coming before the consumer
of all strata of health professionals, who are then largely courts. This is perhaps a reflection of the failure of pro-
absorbed by the private sector. Factors outside the health fessional and statutory organizations like the IMC and the
field, such as growing incomes, improvement of literacy and IMA to maintain standards of practice. As a reaction to this
population ageing, all contributed to this trend. trend, there is some indication that the professional bodies
have become more vigilant. Recently, the IMA strongly
The present appears to be the right time to reassess the role of indicted doctors who were receiving commissions from scan-
the government in the health sector in Kerala. It need not, and ning centres under the euphemism of ‘referral fees’. This is a
perhaps cannot, contribute greatly to the growth in infrastruc- welcome development. The Indian government must set the
ture from now on. However, it needs to take on the mantle of example by weeding out such practices from its hospitals and
the guardian of standards in health care. It can do this only if raising the standards of care.
it concentrates on providing top quality care at government
institutions. The government must also continue to play a The state government must also take the lead in setting pri-
leadership role in the training of health personnel. By main- orities and framing policies which ensure that these goals are
taining high standards in medical and other professional train- met. So far its attitude in policy making has been rather
ing, it can contribute greatly to quality in health care. passive. A recent development in Kerala which may facilitate
a more active role for government is the transfer of more
Quality maintenance should also depend on agencies other powers to the local councils at the panchayat and district
than the government. Other players with a stake in this are the levels, with the recognition that health is one area where such
Indian Medical Council (IMC), the Indian Medical Associ- local control can work most effectively. The outcome of this
ation (IMA) and the legal machinery through the consumer social experiment must be closely monitored.
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