Community Solutions For Healthcare
It is a problem because Indian government can't obviously do a carte blanche solution for universal healthcare. One hears arguments like a set of brand new hospital in every Indian village costs as much as a few Sukhoi fighters, but unfortunately those Sukhoi fighters will be needed, at least for some time. It is not an either/or, and this is where most of the liberal advocacy has gone awary. One has to see how India can maintain a credible defence establishment, continue to invest in its physical infrastructure, not cripple the middle class and businesses with an overwhelming tax burden and yet move towards an universal healthcare provision.
I don't think the solution to this will come from the market-based economics, because it is not a market issue. Poor people dying because they can't afford treatment isn't sustainable in a democratic society, and if we allow that to happen, this issue itself will push us to mutate into a more elitist/ oligarchic society [which, I shall fear, will happen to America]. There is no textbook solution for provision of healthcare for 1.2 billion people, roughly half of which will be below poverty line. So, one has to look for solutions elsewhere.
Thinking about this issue, one sees that some form of community-based solution needs to be found here. For example, government probably needs to find the money to set up the basic healthcare infrastructure across the country but let the community run it whereever possible. And, even pay for it by way of a local tax. There is some bureaucracy involved, but if the management of the system is accountable to the community - let's say a hospital board drawn from a cluster of village administrations - it will be rid of many of problems a bureaucracy entails. There will be politics involved, yes, but this can be battled with a patient's charter of rights and a system of direct accountability. Besides, with such a system, the focus should shift to prevention rather than cure in the healthcare system. The community should be aware that their taxes would go down with healthier lifestyles, and they should be responsible to create awareness and programmes to promote healthier living.