Despite the fact that mining activities are necessary for economic growth, it is imperative that the health hazards connected with them be reduced. The extent to which several factors influence the healthcare cost and health status of the local community in mining locations remains poorly understood. Thus, this article aims to determine the factors that cause a high amount of health expenditure and identify the socio-demographic and economic reasons behind the respiratory illness (RIs) in six mining villages in Talcher coalfield of Odisha. The analysis used estimation techniques like descriptive statistics, ordinary least square (OLS) regression and Probit method. The findings of this article revealed that social infrastructure, such as education of the household head, age group, gender and social categories, along with economic condition, have a significant role in affecting the volume of health expenditure. The findings also highlighted the importance of the socio-demographic indicators for a high level of RIs in this location. Therefore, policymakers need to focus on the health infrastructure and socio-demographic and economic backgrounds in the mining areas to improve proper healthcare utilisation in the mining villages.