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80 pc of Bangladesh’s health budget is wasted: Top executive

By IANS | Updated: February 10, 2026 14:25 IST

New Delhi, Feb 10 Bangladesh’s healthcare system has become capable of meeting the majority of domestic demand, but ...

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New Delhi, Feb 10 Bangladesh’s healthcare system has become capable of meeting the majority of domestic demand, but chronic mismanagement and poor planning are draining nearly four-fifths of the sector’s public spending, according to AM Shamim, general secretary of the Bangladesh Private Hospital, Clinic and Diagnostic Owners Association.

In a recent interview with Bangladesh’s The Daily Star newspaper, he said “Our national health budget stands at around Bangladeshi Taka 42,000 crore. But nearly 80 per cent of that is wasted. Equipment that isn’t needed is purchased, while the ones we do need often sit idle and unused.”

The problem is not a lack of resources but their deployment. For instance, he said that at Labaid Cancer Hospital, two linear accelerator (LINAC) machines deliver radiotherapy to between 160 and 220 patients a day.

In contrast, he emphasised, “government cancer hospitals have 8-12 LINAC machines, yet they treat fewer patients. That’s not a technical issue -- it’s purely a matter of management.”

Red tape compounds the dysfunction. Noting that there were once around 17,500 licensed hospitals and diagnostic centres, he said that number has now dropped to just 3,000 hospitals and 7,000 diagnostic centres.

“To set up a hospital, you need approvals from at least 18 different agencies, ranging from fire services, the Department of Environment, narcotics control, boiler inspection, generator compliance, and more,” he was quoted as saying.

“The main issue is that licenses remain valid for just one year.

The government extended the licence validity to two years last month. But Shamim warned that the underlying problems remain.

He argued that the country has reached a point of functional self-reliance in healthcare delivery, even as deep structural flaws continue to threaten efficiency, accountability and public trust.

The Labaid MD pointed to the sharp fall in outbound medical travel as one of the indicators of the system’s growing capacity. He claimed that medical visas to India, once routine for Bangladeshi patients seeking treatment, have fallen to a tenth of their previous levels over the past 18 months.

Shamim, also the managing director of Labaid Group, one of the country’s largest private healthcare providers, said that over the past two decades, the health sector in Bangladesh has expanded in terms of both infrastructure and workforce, with the private sector now providing close to two-thirds of all health services.

However, the gains are being blunted by wastage, regulatory dysfunction and weak governance, he added.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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