We study the incidence and extent of bribes paid to the doctors in the public health facilities
which are cleverly identified using a nationally representative survey. The survey asks
households about the fees paid to public doctors, not about the bribe, which makes it less
prone to reporting bias. We find that though consultations are free in the public health
facilities, 41% of the patients who visited them paid about US$2 as a consultation fee, which
is about 16% of their total medical expenditure. Three interesting generalized results that we
find on the determinants of incidence and extent of bribe payment are: First, bribe givers and
non-givers are different in terms of observed characteristics. Second, the same doctors,
when sit in a private facility, charge more, setting an upper limit of bribes at public facilities.
Third, travel time of the service seekers is used as a price discriminating device by the public
service providers. Results have important implications for combating corruption, especially in
developing countries.