Indian Medical System for Sale?
Erosion of Trust & Ethics
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MARCH 2025
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The corporatization of healthcare in India is no longer just a policy debate—it has become a crisis affecting every citizen.
At stake is not only the affordability of treatment but also the fundamental essence of healthcare as a service rather than a business.
What was once a profession driven by ethics and compassion is now dictated by financial targets and corporate interests.
Despite the urgency of the problem, a solution remains elusive.
Fixing this deeply entrenched system would require nothing short of a seismic transformation—one that demands extraordinary political will and a fundamental shift in societal mindset.
But is India ready for such a change?
As things stand, the answer appears far from reassuring.
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A sharp decline in doctor-patient trust, reaching an all-time low.
The Consequences of Corporatization in Healthcare
The corporatization of healthcare in India has introduced significant challenges that affect various facets of the medical system, including:
A sharp decline in doctor-patient trust, reaching an all-time low.
Escalating healthcare costs that are becoming unaffordable for most.
The erosion of medical autonomy, turning doctors into corporate employees with limited decision-making power.
The decline of small hospitals, which are struggling to survive against corporate giants.
The rise of ethical dilemmas and legal challenges within the medical profession.
Employment insecurity for doctors, reducing them to contractual workers akin to a menial labor market.
The increasing cost and commercialization of medical education, pushing students into debt.
The loss of the perception of healthcare as a service, with hospitals prioritizing profits over patient welfare.
A diminished focus on public health, as government reliance on private healthcare weakens public infrastructure.
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...over 100 medical students died by suicide in a single year, highlighting the severe mental health crisis...
The Maharashtra Medical Council reported in 2019 that over 100 medical students died by suicide in a single year, highlighting the severe mental health crisis within medical education.
The stress of exorbitant tuition fees, relentless workloads, and fierce competition takes an immense toll on young doctors.
Overall, the situation remains grim, with systemic failures pushing medical professionals to the brink.
The Erosion of Doctor-Patient Trust
Not long ago, the concept of a family doctor was deeply ingrained in Indian households. These doctors were trusted not only for medical advice but also for guidance on lifestyle and well-being.
The status of a family doctor was equatable to a senior member of ones family.
Their relationships with families spanned generations, fostering trust and a sense of security.
While there was a commercial aspect, financial concerns took a backseat to patient care, as family relationship was priority.
Today, this social fabric has broken.
The corporatization of the medical system has led to a transactional relationship between doctors and patients, often fueled by distrust.
Revenue-driven policies have resulted in unnecessary tests, procedures, and extended hospitalizations—all under the guise of medical protocol.
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...corporatization of the medical system has led to a transactional relationship between doctors and patients...
Doctors are frequently pressured to meet financial targets, compromising the quality of care. This environment has fostered growing patient suspicion, leading to an increase in violent incidents against doctors.
A survey by the Indian Medical Association (IMA) revealed that up to 75% of doctors in India have faced violence or aggression at the workplace—an alarming consequence of this broken trust.
The Rising Cost of Healthcare
Corporate hospitals operate on a profit-driven model, leading to inflated medical bills and expensive treatments.
A rough estimate suggests that for an upper-middle-class hospital, the cost of hospitalization ranges between ₹1 lakh ($860) to ₹1.5 lakh ($1,290) per day.
A study by Brookings India found that the median cost per outpatient visit in private hospitals is ₹1,251 ($16), compared to ₹304 ($4) in tertiary care facilities and ₹185 ($2.43) in district hospitals.
This stark disparity makes essential treatments unaffordable for lower and middle-income populations, deepening healthcare inequality.
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...An upper-middle-class hospital, the cost of hospitalization ranges between ₹1 lakh ($860) to ₹1.5 lakh ($1,290) per day
One major factor behind rising costs is the restriction on doctors prescribing generic medicines.
Hospitals often have exclusive tie-ups with pharmaceutical companies, forcing doctors to recommend expensive branded drugs.
A 2020 investigative report by The Hindu found that doctors at some major corporate hospitals were instructed to prescribe only specific branded medicines, even when equally effective and more affordable generic alternatives were available.
The Loss of Medical Autonomy
In corporate hospitals, doctors function as employees with little decision-making power. They are required to follow hospital management protocols that prioritize profitability over personalized care.
Performance targets and standardized treatment protocols further erode their professional autonomy.
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Since C-sections are more lucrative, hospitals push for them despite medical necessity
For instance, in 2019, a senior cardiologist in Delhi resigned from a reputed corporate hospital, citing pressure to increase the number of angioplasties performed.
He revealed that he was discouraged from recommending lifestyle changes or medication as first-line treatments and was instead pushed to conduct stent placements—far more profitable for the hospital.
Similarly, a gynecologist in Mumbai was reprimanded by hospital management for not convincing enough patients to opt for C-sections instead of normal deliveries.
Since C-sections are more lucrative, hospitals push for them despite medical necessity.
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...'cut practice'—where doctors receive commissions for referring patients to specific hospitals and test labs...
A 2018 study in The Lancet found that nearly 50% of births in private hospitals in India occur via C-sections, compared to just 15% in government hospitals.
The World Health Organization (WHO) recommends a 15% threshold, showing that financial incentives are driving unnecessary surgeries.
Medical Malpractice and Unethical Practices
Corporate pressures to meet financial targets have fueled an alarming rise in medical malpractice cases.
Research indicates an annual incidence of up to 5.2 million cases related to medical malpractice across healthcare settings in India.
The infamous 'cut practice'—where doctors receive commissions for referring patients to specific hospitals and test labs —further encourages corruption.
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...Over half a billion Indians are left with no choice but to endure suffering...
A 2019 report in The Times of India highlighted concerns about the overuse of stents in cardiac patients, emphasizing that a significant number of doctors prescribed stenting unnecessarily.
A study by The Hindu found that 44% of patients seeking second opinions were advised to undergo surgeries that were later deemed unnecessary upon further evaluation.
This exploitation erodes patient confidence in the medical system.
The book "Healers or Predators?: Healthcare Corruption in India" sheds light on these harsh realities, urging systemic reform. We must reclaim the integrity of Indian healthcare—before it is too late.
Healthcare Becomes a Business, Not a Service
Patients -
The plight of patients in India today is heartbreaking. Healthcare, once a compassionate service, has become a privilege reserved for those who can afford it.
Those without high-cost insurance policies are often ignored in favor of VIP patients who contribute to hospital profits.
Trust in the doctor-patient relationship is eroding, leaving patients feeling exploited and powerless.
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Doctors today face an emotional dilemma...
For many, healthcare has become a cold, transactional experience—one where suffering is secondary to revenue generation.
This shift is devastating. The promise of healing and care has been replaced by financial targets and profit margins.
For lower-income groups, the situation is even worse.
It is a well-known fact that more than 50% of India's population relies on government ration schemes, yet they have little to no access to quality healthcare.
This means over half a billion Indians are left with no choice but to endure suffering, making healthcare an unattainable dream for millions.
Doctors -
For doctors, the transformation of healthcare into a business is equally tragic.
Once viewed as compassionate healers, they are now mere cogs in a corporate machine, forced to meet financial targets rather than serve their patients with integrity.
The Indian Medical Association (IMA) reported in 2020 that more than 1,400 doctors in India died by suicide between 2018 and 2020.
Many factors contribute to this crisis, including overwork, financial strain, and ethical conflicts.
Doctors today face an emotional dilemma—trapped between their ethical duty and corporate demands.
The stress of working in a system that prioritizes revenue over patient care is suffocating the very soul of the medical profession.
It is time for bold action.
Restoring trust, ethics, and accessibility in healthcare must become a national priority.
The collective philanthropy that once defined India's healthcare system and the Indian society has eroded, but it is not beyond repair.
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