India’s health financing structure includes public spending, insurance coverage, and direct household payments, and the National Statistical Office conducted its 80th round health survey from January to December 2025. The survey data released on 21 April 2026 placed out-of-pocket expenditure at the centre of hospitalisation costs in both rural and urban India.
Out-Of-Pocket Expenditure
Out-of-pocket expenditure, or OOPE, is the amount paid directly by households at the point of receiving healthcare services. It includes payments for consultation, medicines, diagnostics, hospital charges, and other medical expenses not covered by insurance or public financing.
Hospitalisation Costs In Rural And Urban India
In rural India, the average hospitalisation expense in 2025 was ₹31,500, and OOPE accounted for nearly 95% of the total cost. In urban India, the average hospitalisation expense was about ₹47,000, and OOPE was roughly ₹39,000, or 83% of the total.
Change In Medical Expenditure
The average medical expenditure due to hospitalisation nearly doubled between 2017-18 and 2025. Rural expenditure rose by 97% during this period, and urban expenditure rose by 77%.
Insurance And Financing Coverage
Health insurance and financing scheme coverage increased between 2017-18 and 2025. Coverage reached 46% in rural areas and 32% in urban areas in 2025.
State-Level Government Hospital Costs
Government hospitals in Bihar recorded a per-case OOPE of ₹10,553, while Uttar Pradesh recorded ₹12,878 and Jharkhand recorded ₹12,364. The national average OOPE at government hospitals was ₹6,631.
Hospitalisation Rate And Illness Reporting
The overall hospitalisation rate remained at 29 cases per 1,000 people between the 2017-18 and 2025 surveys. Reported illnesses rose to 13.1% of Indians in a 15-day period in 2025, compared with 7.5% in 2017-18.
Public Health Spending
Public spending on health in India stood at 1.8% of GDP as of 4 February 2026. Out-of-pocket expenditure by individuals accounted for 39% of total health expenditure.
Last Modified: April 28, 2026