The aggregate expenditure towards private costs on health in India is out-of-pocket when compared with other low income and lower-middle income countries as well as upper-middle income and high income countries. The burden of health expenses on an individual in India is enormous. Given the high dependence on private health facilities and also the fact that the out-of-pocket expenditure is 100% of the total private costs, it would be of high relevance to determine price variability in components of out-of-pocket expenditure on different health goods and services. This paper captures price variability in diagnostic tests among independent private medical diagnostic clinics and intra price variability in diagnostic tests between independent private facilities and corporate hospital labs in the city of Hyderabad. The paper concludes that in the absence of regulatory price control mechanisms, increased public facilities, insurance support and credibility of public facilities, both independent private facilities as well as corporate hospitals will continue to cheat the poor man in India, who is an unsuspecting believer of the superiority of private healthcare facilities.

India is one of those countries where the individual incurs the largest Out-of-Pocket (OOP) expenses.1 The contribution of out-of-pocket expenditure towards private expenditure on health is total in India, as against many other low income and lower middle-income countries as well as upper middle income and high-income countries (Table 1). The burden on the individual, in India, is enormous. In many other countries, where the out-of-pocket expenses as a percentage of private health expenditure is less than 100, the remaining part of the private expenses are either borne by insurers, are mandated employer health services, or some other enterprise-provided health services, etc.