Medical Inflation - Issues and Impact

  • S Poongavanam Professor, AMET Business School, AMET University, Chennai, Tamil Nadu, India.
  • R Srinivasan Associate Professor, AMET Business School, AMET University, Chennai, Tamil Nadu, India.
  • D Arivazhagan Professor, AMET Business School, AMET University, Chennai, Tamil Nadu, India.
  • NV Suresh Vice-Principal, ASET College of Science and Technology, Chennai, Tamil Nadu, India.
Keywords: Consultant, Health, Chronic Disease, Drugs, Care Management, Premium, Inflation, Index


Inflation is one of the biggest threats to developing countries. It reduces the value of the rupee, which makes goods and services more expensive. Generally, inflation is acceptable if it is in the range of 5-7% per annum. Medical inflation is much higher than general inflation as it is estimated to be around 20%. The money spent on the services provided by medical practitioners increases year after year, thus medical inflation automatically increases. It refers to an increase in both unit cost and utilisation cost of services.

How to cite this article:
Poongavanam S, Srinivasan R, Arivazhagan D, Suresh NV. Medical Inflation - Issues and Impact.
Chettinad Health City Med J. 2023;12(1):122-124.



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