The government itself must provide well equipped and well staffed hospitals that compete with private hospitals.
They should improve their existing government hospitals or outsource their government facilities to professional sincere and competent private hospital agencies and collected a small royalty from them for the use of government facilities.
One reason for poor facilities at government health care institutions is lack of funding.
The government should allocate 6.5% of the budget towards health care.
Once funding is allocated at 6.5% of the budget, the only way to shake a government hospital facility out of its complacency is to ensure that government hospitals compete for funding with private hospitals.
This can be done by a system of subsidised vouchers.
Families upto an income limit of Rs 1,50,000 must be provided 100% voucher subsidies for a maximum hospital fees of Rs 500,000 per incident.
Families with an income above Rs 1,50,000 and upto Rs 3,00,000 must be provided 70% voucher subsidies for a maximum hospital fees of Rs 300,000 per incident.
Families with an income above Rs 3,00,000 and upto Rs 5,00,000 must be provided 50% voucher subsidies for a maximum hospital fees of Rs 200,000 per incident.
Families with an income above Rs 5,00,000 and upto Rs 7,50,000 must be provided 25% voucher subsidies for a maximum hospital fees of Rs 100,000 per incident.
All families regardless of income upto Rs 20,00,000, who incur a total hospital fee of Rs 10,00,000 per incident should be provided with a minimum 35% subsidy.
Any family who files a false income declaration must have their subsidy cancelled and be ordered to refund the entire amount of subsidy that they availed along with 20% annual compound interest from the date of availing the subsidy.
If they fail to pay or cannot pay, their assets should be seized and auctioned off.
Private for profit hospitals should be allowed but with strict regulation and also price control based on the services and resources provided by the hospital institution.
There cannot be a flat price control for all hospital institutions.
There are some institutions that provide superior facilities and of course they will have to incur a high cost for this service, so their price control should be at a higher level than that of a lower end hospital institution.
25% of the seats in these private hospital institutions should be reserved for families earning less than Rs 150,000 per year.
But the government must give subsidy to these hospital institutions to make up the losses based on costs and a maximum of 10% net profit per reserved poor category patient.
Locals should be given preference.
Outsiders (non locals) especially from richer regions or richer countries must pay 1.5 times the locals fees.
All transactions in these institutions must be in white money and if any black money is accepted they should pay twice the amount of black money accepted as fine from the hospital institution.
If they cannot pay, their assets upto the fine amount should be seized.
At least 70% of all funds received for the hospital institution must be invested back in the hospital institution or to businesses related to education and health care.
All hospital institutions should have free toilets, electricity, security and if possible provide highly subsidised or partially free meals for poor people with a family income less than Rs 150,000 per year.