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Health care sector in India

 Adoption of centralized practices in Health care.

  • The adoption of centralized procurement practices in the healthcare sector in India is still in its early stages. 

  • Centralized procurement involves the consolidation of all purchasing activities and decisions within a single department or individual. 

This can lead to a number of benefits,

  • Reduced costs: It can help to reduce costs by leveraging the organization's buying power to negotiate better prices.

  • Increased efficiency: Process and reduce the administrative burden on individual departments.

Adoption of centralized practices in Health care.

  • Improved quality: It can help to ensure that the organization is purchasing high-quality goods and services.

  • Reduced corruption: It can help to reduce corruption by making the procurement process more transparent and accountable.

In health care, centralized procurement used in the following,

  • Pharmaceuticals and medical supplies

  • Medical equipment and Laboratory supplies

  • Information technology systems

  • Healthcare services, such as laboratory testing and imaging


Adoption of centralized practices in Health care.

  • A number of Indian states and government agencies have already adopted centralized procurement practices. Ex T.N

Challenges for adoption of centralized procurement. 

  1. Fragmentation of the healthcare system. 

  2. Difficult in coordination due the number of hospitals.

  3. Lack of capacity and expertise .


Central Government Health Scheme(CGHS)

  • CGHS is a centrally sponsored health insurance scheme.

  • For central government employees and pensioners residing in select cities in India. 

  • The scheme was launched in 1954 and is administered by the Ministry of Health and Family Welfare.

CGHS beneficiaries including:

  • Outpatient and inpatient treatment

  • Medicines and diagnostics

  • Preventive healthcare services

  • Dental care

  • Optical care

Central Government Health Scheme(CGHS)

  • Family planning services

  • Maternity care

  • Mental healthcare

  • Emergency care


  • CGHS beneficiaries can receive healthcare services from government and private hospitals and clinics that are empanelled with the scheme. 

  • Beneficiaries can also avail of cashless services at empanelled hospitals.

Pradhan Mantri Jan Arogya Yojana(PJAY)

  • PM-JAY, also known as Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).

  • Health insurance scheme of the Government of India that covers all poor and economically weaker families. 

  • Provides free health insurance up to Rs 5 lakh.

  • This scheme was launched in 2018 and its benefits are extended to approximately 10 crore families across the country.

Under PM-JAY, beneficiaries get the following health services:

  • All necessary treatment, medicines and tests when admitted to hospital.

Pradhan Mantri Jan Arogya Yojana(PJAY)

  • Childbirth, newborn care and maternal health services

  • Treatment for serious diseases such as cancer, heart disease and kidney disease

  • Operations, transplants and other complex treatments


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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Health care sector in India
Health care sector in India
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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