The years of neglect and the lack of a comprehensive system for addressing quality issues in the health sector are quite well known. The current structure of the health care delivery system in our country, does not provide enough incentives for improvement in efficiency. Mechanisms used in other countries to produce greater efficiency, accountability, and more responsible governance in hospitals are not yet deployed in India.

The for-profit private sector accounts for a substantial proportion of health care in India (50% of inpatient care and 60-70% of outpatient care), but has received relatively less attention from the policy makers as compared to the public sector. Thus the private sector health care delivery system in India has remained largely fragmented and uncontrolled, and there is a clear evidence of serious quality of care deficiencies in their practices.

In the present situation there is a need to establish bodies and systems to monitor clinical and non-clinical effectiveness of the services offered in the public and private facilities. The process of NABH accreditation is envisaged to result in a process of fundamental change in the technical procedures of service delivery, in the appropriate use of available technologies, in the integration of relevant knowledge, in the way the resources are used, and in the efforts to ensure social participation.