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Health Policy Issues and Health Programmes in ... - Amazon S3

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Cost Recovery Measures <strong>in</strong> Government <strong>Health</strong> InstitutionsTable 3. MRS Jaipur: Income <strong>and</strong> Expenditure Dur<strong>in</strong>g 1995–2001 (<strong>in</strong> lakh of rupees)Year Income Expenditure SurplusSociety LLFS Total Society LLFS Total1995/96 24.49 — 24.49 — — — 24.491996/97 175.79 6.53 182.32 13.42 1.45 14.87 167.451997/98 328.13 25.43 353.56 186.43 3.09 189.52 164.041998/99 322.89 25.40 348.29 306.71 9.45 316.16 32.131999/00 382.74 17.56 400.30 171.25 7.39 178.64 221.66Gr<strong>and</strong> Total 1,234.04 74.92 1,308.96 677.81 21.38 699.19 609.77The breakdown of sources of the additional funds generated by the MRS Jaipur is given <strong>in</strong> Table4. It is evident that the major source of revenue is user charges levied on diagnostic tests.Studies conducted <strong>in</strong> 1997 <strong>and</strong> 2000 on MRS <strong>in</strong> Rajasthan report that <strong>in</strong>troduction of costrecovery has not adversely affected the utilization of health care.Additional funds generated are used by the hospitals for purchas<strong>in</strong>g new equipment, repair<strong>in</strong>g<strong>and</strong> ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g <strong>in</strong>frastructure <strong>and</strong> equipment, contract<strong>in</strong>g out support services such as clean<strong>in</strong>g,<strong>and</strong> purchas<strong>in</strong>g consumables. All societies are m<strong>and</strong>ated to use 70% of surplus funds forimprov<strong>in</strong>g patient care with<strong>in</strong> the same f<strong>in</strong>ancial year the funds were generated. The societiesdecide how to use the surplus funds based on the needs <strong>and</strong> priorities of the <strong>in</strong>stitutions.Discussion <strong>and</strong> <strong>Policy</strong> RecommendationsThe <strong>in</strong>troduction of user charges <strong>in</strong> government health <strong>in</strong>stitutions <strong>in</strong> Rajasthan is one of thebetter perform<strong>in</strong>g <strong>in</strong>terventions compared with other, similar contemporary experiences <strong>in</strong>India. The factors that differentiate it from these other experiences are as follows.l An autonomous society was created for each health <strong>in</strong>stitution.l General guidel<strong>in</strong>es for its function<strong>in</strong>g were issued.l Societies were empowered with f<strong>in</strong>ancial <strong>and</strong> adm<strong>in</strong>istrative autonomy.l Societies were permitted to reta<strong>in</strong> all the additional funds raised <strong>and</strong> use them for bettermentof services without referr<strong>in</strong>g to the state government.Table 4. Source of Income (<strong>in</strong> lakh of rupees)Source of Revenue EarnedYear1995/96 1996/97 1997/98 1998/99 1999/00 TotalDiagnostic charges 10.85 92.95 137.65 152.77 267.67 661.89Auditorium — — 1.01 0.79 0.67 2.47Cycle st<strong>and</strong> — — 5.26 12.20 9.95 27.41Rent of wards <strong>and</strong> — — 26.71 24.44 17.19 69.34post office — 0.01 0.03 0.04Unclaimed money — 0.84 0.12 0.30 0.02 1.28Interest on FDR/TDR — 13.08 17.85 30.60 29.44 90.97Total 10.85 106.87 188.87 221.11 324.97 852.40113

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