According to the latest National Sample Survey Office (NSO) data, out-of-pocket expenditure on hospitalisation still accounts for an average of ₹31,500 per hospitalisation in rural areas, representing almost 95% of the average total spend on each episode of hospitalisation. In urban India, the average hospitalisation expenditure was ₹47,000 with out-of-pocket expenditure of ₹39,000, or around 83% of the total expenditure. As reported by The Times of India, this pattern reflects the continued burden of healthcare costs on individuals despite health insurance coverage improvements.
The survey reveals significant improvements in health insurance coverage, with coverage increasing to almost 46% in rural areas and 32% in urban India. However, the data shows that average out-of-pocket expenditure per childbirth was almost as much as the average medical expenditure per childbirth, indicating that health schemes are not being utilized optimally. According to the NSO findings, the average out-of-pocket expenditure seems to be slightly less than the average medical expenditure for childbirth and hospitalisation in urban India, suggesting better scheme utilization in urban areas.
The average medical expenditure due to hospitalisation has experienced a dramatic increase, almost doubling between 2017-18 and 2025. Rural India showed a greater increase with 97% jump compared to 77% in urban areas. As reported by The Times of India, hospitalisation in private facilities accounted for a bigger jump than in public facilities, highlighting the growing cost burden of private healthcare services.
Despite rising costs, the overall hospitalisation rate has remained stable at 29 cases per 1,000 persons in both the previous and latest surveys. According to the NSO data, rural hospitalisation rate increased from 26 cases per 1,000 to 29, while urban hospitalisation rate decreased from 34 to 32 cases per 1,000 persons. This stability in hospitalisation frequency contrasts with the significant increase in per-case medical expenditure, indicating improved healthcare access despite cost pressures.
