# Healthcare services: Chokepoints and risks

Hospitals, clinics, laboratories and pharmacies that diagnose, treat and care for patients

Source page: https://www.materialinsights.org/industries/healthcare/risks/

#### Chokepoints and risks

- Out-of-pocket payments exceed 40% of health spending in low-income countries and about 2 billion people face financial hardship from health costs^[2](https://www.who.int/director-general/speeches/detail/who-director-general-s-opening-remarks-at-the-launch-of-the-global-health-expenditure-report-2024-9-december-2024).
- India's government health spending fell to 1.48% of GDP in 2022-23, and the household out-of-pocket share rose back to 43.4% of the bill^[3](https://nhsrcindia.org/sites/default/files/2026-05/NHA%202022-23%20Report.pdf).
- Clinician shortages: doctors and nurses take roughly 5 to 10 years to train (estimate), so capacity cannot respond quickly to demand.
- High-end imaging equipment and many drug inputs are imported, so currency moves and supply disruptions feed straight into hospital costs.
- Payment delays and fixed tariffs in public schemes squeeze hospital margins; AB-PMJAY alone has funded ₹2.03 lakh crore of admissions^[4](https://www.digitalhealthnews.com/ab-pmjay-marks-8-years-with-13-25-cr-hospital-admissions-worth-inr-2-03-lakh-cr).

## Other sections

- [Overview](https://www.materialinsights.org/industries/healthcare/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/healthcare/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/healthcare/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/healthcare/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/healthcare/linked-industries/index.md)
- [Value chain](https://www.materialinsights.org/industries/healthcare/value-chain/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/healthcare/materials/index.md)
- [Sources](https://www.materialinsights.org/industries/healthcare/sources/index.md)