Private hospital vs government hospital cost: Hospitalisation is nearly 8 times more expensive

The cost gap between private and government healthcare remains stark, with hospitalisation in a private facility costing nearly eight times more on average, according to findings cited in a new LocalCircles survey. The survey comes amid renewed concerns over healthcare affordability and the financial burden faced by families seeking treatment.

Data from the 80th round of the National Sample Survey (January-December 2025) cited in the survey showed that the average cost of hospitalisation was ₹50,508 in a private hospital, compared with ₹6,631 in a government hospital. This means the average private hospitalisation cost was about 7.6 times the cost in a government facility.

The difference was also visible in childbirth-related expenses. The average out-of-pocket expenditure for childbirth in a private hospital stood at ₹37,630, compared with just ₹2,299 in a public facility.

High treatment and test costs remain major concerns

The LocalCircles survey sought to understand the experiences of families that had used private hospital services during the previous three years. It received 23,084 responses from citizens across 306 districts of India.

The findings showed that high costs were a major concern for families. 68% of respondents said they had faced excessively high treatment prices, making it the most commonly reported issue in the survey. Another 63% reported excessively high prices for diagnostic tests.

MUST READ: Health insurance protection gap: 84% want extra cover, but 45% still don’t have it

High facility charges were another concern, with 56% of respondents citing excessive charges for facilities such as ICU or rooms. Meanwhile, 51% reported excessively high prices for medicines and consumables.

The survey also highlighted concerns around billing practices. 49% of respondents said unnecessary doctor consultation charges had been included in their bills, while 43% reported excessively high doctor consultation charges.

Further, 40% reported overbilling of the quantity of medicines and consumables used, while another 40% said they faced unexpected or unknown charges.

Source: 80th round National Sample Survey (January–December 2025)

Only 14% reported no such billing issues

Overall, more than six in 10 families surveyed said they had experienced issues with private hospital bills, with a majority specifically flagging the high cost of treatments and tests. Only 14% said they had not experienced any of the listed billing issues.

The survey findings therefore highlight the financial pressure associated with private healthcare, particularly when patients require hospitalisation, diagnostic tests, ICU or room facilities, medicines and other services.

MUST READ: Health insurance deductibles explained: Can this simple feature cut your premium by up to 50%?

The survey was conducted among validated LocalCircles users, with 69% of respondents being men and 31% women. Of the respondents, 46% were from tier-1 locations, 30% from tier-2 cities and 24% from tier-3, tier-4 and tier-5 districts.

The findings provide a snapshot of patient experiences and reported billing concerns, while the NSS data cited in the survey illustrates the substantial difference in average healthcare expenditure between private and government hospitals.