The Epidemic of Over-Testing and Over-Treatment in Indian Hospitals

India's healthcare system—often seen as both a life-saver and an innovation hub—is facing a less discussed, but serious epidemic: the overuse of medical tests and treatments. Behind the facade of modern hospitals and shiny diagnostic labs, a troubling pattern is emerging where patients are subjected to unnecessary procedures, racking up bills that enrich hospitals, insurance companies, and pharma players, but leave families financially drained and emotionally exhausted.

How Over-Testing and Over-Treatment Happen

Many Indian private hospitals operate with one eye on profit. Doctors, especially those in large corporate hospitals, often work under immense pressure to hit revenue targets set by management. In some cases, they’re compelled to suggest additional scans, blood works, and even surgeries that add little to patient care but boost the hospital's bottom line. Several reports and whistleblowers within the system have openly stated that the push to meet financial quotas leads directly to unnecessary interventions.

The Cost to Patients

For patients, the consequences are severe. Routine treatment is padded with pointless diagnostic tests—think a patient admitted for dengue fever asked to pay for full panels for typhoid, malaria, and more, only because insurance would foot the bill or because it's billed as a package. During the COVID-19 pandemic, patients reported being charged for medicines and consumables at three to four times the market price, extra equipment, and even more tests than required by protocol.

Bills are often inflated in other subtle ways, too—separating core charges for room rent, doctor visits, oxygen use, or administering injections into distinct costly line items. Insurers have tried to set clear package rates, but hospitals frequently circumvent these guidelines, leaving patients either to contest inflated bills or pay out-of-pocket to avoid delays in critical care.

Who Profits?

• Hospitals: By prescribing more tests and "unbundling" services, hospitals maximize revenue per patient admission, especially from those covered by health insurance.

• Insurance Companies: Higher pricing structures fuel rising premiums and administrative charges, with insurance sometimes passing costs back to patients through exclusions or disallowing certain components of the bill.

• Pharmaceutical Companies: Hospitals often recommend brands with the highest printed prices—even when cheaper, equally effective options exist—so they and affiliated pharma reps benefit from higher margins.

The Human and Social Impact

Aside from emptying bank accounts, this culture creates suspicion and psychological distress. Patients in India are often left wondering if their doctor’s advice genuinely serves their health—or the hospital’s financial interests. Studies have shown that unnecessary health checks lead not only to over-diagnosis and over-treatment, but also to anxiety and poorer well-being. Out-of-pocket expenses can push families into debt, with some even having to sell assets to pay for care.

Why Isn't This Stopped?

Structural issues in India's healthcare regulation allow these practices to flourish. Hospitals have found ways to sidestep rules set by insurance regulators and public insurance schemes, and the lack of transparent billing standards allows costs to be hidden behind medical jargon and complex itemization. Moreover, doctors who complain risk their jobs—and few patients have the knowledge or resources to contest a bill.

Conclusion: Need for Reform

India urgently needs stronger checks, more transparent billing, and a patient-centric approach in healthcare. The blind pursuit of profit, marketed as "comprehensive care," is turning health into a business where the patient is less a human in need and more a customer to be profited from. Clearer regulation, better patient rights, stronger oversight of billing practices, and breaking cozy hospital-pharma-insurance relationships are essential to stop this spiral.

Until then, India's hospitals may remain some of the most expensive "testing centers" in the world—for the health of patients and the health of the nation's wallets.

Note for Patients

If you ever see a doctor in a sharp suit driving a luxury car or living in a lavish villa, remember this: a significant part of that wealth may come from the bills paid by patients who were treated at the hospital, diagnosed by that doctor, or who filled prescriptions recommended by them. Sometimes, the "success" you see is built directly on the costs—often unnecessary—shouldered by ordinary people trying to get well. This is a sobering reminder of why transparency and ethical practices in healthcare matter so much.