Bangladesh had been making significant socio-economic developments in recent years. Despite improving healthcare indicators such as decline in mortality rates and increase in average life expectancy, the health sector of the country is yet to reach its full potential. According to the World Bank data, Bangladesh is one of the ten countries with lowest heath expenditure as total percentage of GDP. However, reform policies coupled with innovation and investment by the private sector may translate into rapid rise of this sector.

Lack of adequate healthcare facilities is leading to a greater portion of personal income to be spent on healthcare. According to the Household income and Expenditure Survey, only the social safety net programme compared to the global average of almost 60% covered a meager 24.6% of Bangladeshi families. Meanwhile, the total functional bed id 92,404 which means 0.6 beds per 1000 people against the WHO recommended amount of 3.5 per 1000.

Although the percentage of GDP being spent on the healthcare sector is relatively higher than it used to be, it is still very low compared to developed countries which spend 8-12% GDP on health. Moreover, public money in this sector in developed nations is three times of private money, whereas in Bangladesh, the government contribution to health expenditure is only about 1.1%. The Government out of tax revenues and development outlays does about 60% of the public financing, while international development assistant funds the renaming 40%. According to health bulletin of 2015 by Directorate General of Health Services (DGHS) under the Ministry of Health and Family Welfare of Government of the peoples Republic of Bangladesh, the number of Physician per 10,000 populations is 3.8 only and nurse per 10,000 populations is 1.15 only Total number of Government hospitals under the DGHS report is 612, secondary and tertiary level hospital id 128 and number of private registered hospitals, and clinic is 4,280. In Bangladesh, healthcare is promising industry with tremendous growth potential lead the industry is set to boom.

The inadequacy of public health system paved the way of private hospital business in Bangladesh. Moreover, the public health sector is plagued by uneven demand and perceptions of poor quality which driving patients to private healthcare sector.