Health plays an important role in the social scenario. Hence, it plays an important role in the social and economic development. The expenditure on the social sector is quite less than the expenditure on economic sector and due to this, the health sector which is an important component of the social sector has been affected. In order to develop the health sector, there is a need for restructuring this sector. The fund flows in the health sector very less from the central government and the state governments whereas maximum fund flows come from private sectors due to which the private health services are not that affordable. The health expenditure as a percentage of GDP is quite less which needs to be enhanced. The condition of the health sector in the state of Madhya Pradesh is also not up to the mark due to the lack of allocation of adequate funds.