This study makes an attempt to shade some light on medical expenditure and out of pocket
expenditure on hospitalisation at household level in India. The specific objectives are to assess the levels and
determinants of medical expenditure and out-of-pocket medical expenditure on hospitalization (inpatients) at
the household level in India. The schedule 25.0 (morbidity & health care) of NSS 60th round (2004) data has
been used. Some of the basic descriptive statistics and multiple regression analysis have been used. 86 percent
of the households paid their medical expenditure on hospitalization through households saving/income, 42
percent through borrowing, 18 percent through the contribution from family or friends and 6 percent paid
through other sources of finance. Economic status of the households is closely associated with the medical
expenditure and it is positively skewed for all the subgroups of the population and there is high variability in
medical expenditure on hospitalization.