This paper examines the processes adopted for the institutionalisation of user charges in government hospitals in the state of Rajasthan. The framework developed and actions taken by the state on the essential elements for institutionalisation are discussed. It is observed that the medical department provided much-needed support for effective implementation of user charges. Although there are several challenges yet to be adequately addressed, these are not insurmountable. There is great potential for enhancing revenue generation by government hospitals and improving the quality of care.
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