Private vs Government Hospitals: Why Treatment Costs Show a Huge Price Gap

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Healthcare costs can vary sharply depending on where a patient receives treatment. According to National Sample Survey (NSS) data cited by LocalCircles, the average hospitalisation expense in a private hospital was ₹50,508, compared with ₹6,631 in a government facility.

The figures come from the 80th round of the National Sample Survey, covering January to December 2025. Based on these averages, hospitalisation in a private facility cost around 7.6 times more than in a government hospital.

The cost difference was also significant for childbirth. Average out-of-pocket spending for childbirth was ₹37,630 in a private hospital, while the corresponding expense in a government facility was ₹2,299.

High Treatment and Diagnostic Costs Reported

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

High treatment charges emerged as the most frequently reported concern. About 68% of respondents said they had encountered excessively high treatment costs. Diagnostic expenses were another major issue, with 63% reporting unusually high prices for tests.

Facility-related charges were also highlighted. Around 56% of respondents said they faced excessive charges for services such as ICU and room facilities. Meanwhile, 51% reported high prices for medicines and consumables.

Billing Practices Also Raise Concerns

The survey found that families also reported several concerns related to hospital billing.

Nearly 49% of respondents said their bills included what they considered unnecessary doctor consultation charges, while 43% reported excessively high consultation fees.

Around 40% said they had experienced overbilling for the quantity of medicines or consumables used. Another 40% reported unexpected or unexplained charges on their bills.

Healthcare Cost / Billing IssuePrivate HospitalGovernment Hospital
Average hospitalisation cost₹50,508₹6,631
Average childbirth out-of-pocket expenditure₹37,630₹2,299
Private hospitalisation cost vs government~7.6 times higher

Source: 80th round National Sample Survey, January–December 2025.

Only 14% Reported No Billing Issues

Overall, more than six in 10 families surveyed said they had faced problems with private hospital bills. High treatment and diagnostic costs were among the most commonly reported concerns.

Only 14% of respondents said they had not experienced any of the billing issues covered in the survey.

The findings highlight the various expenses families may encounter during private hospital treatment, including hospitalisation, diagnostic tests, room or ICU charges, medicines and other services.

Survey Covered 306 Districts

The LocalCircles survey received responses from 23,084 citizens across 306 districts. Among the respondents, 69% were men and 31% were women.

Around 46% of participants were from tier-1 locations, 30% were from tier-2 cities, while the remaining 24% came from tier-3, tier-4 and tier-5 districts.

The survey reflects the experiences and billing concerns reported by participating respondents, while the NSS figures cited alongside it show the substantial difference in average hospitalisation expenditure between private and government facilities.

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