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Reforms

Bold Reforms

IS THE NEED OF THE HOUR!

As the world continues to reel under the far reaching and unprecedented impact of the global pandemic triggered by the Corona virus, importance of health and healthcare systems for survival of human race is being realized by people all over the world. Pandemic has also revealed a critical and compelling need to assess and improvise the healthcare systems in low resourced settings like those in Indian rural setups or urban slums.

The challenge to manage the healthcare becomes more daunting with poor socio-economic, conditions along with cultural, political and geographical diversities and excessive population, where the systems inadvertently crack under various such pressures. Health systems are generally considered to be an interrelated connection between six ‘building-blocks’ of service delivery, medical equipment, manpower or health workforce, information, financing and stewardship or coordinated leadership.

In the Indian context, the pandemic has exposed long-standing weaknesses in our system, intensifying in face of the emergency. Our healthcare system suffers major inadequacies. A part of the reason for this is that India spends merely 1.28 percent of its GDP on health, as per the National Health Profile-2019 report. Our spending on healthcare is substantially lower than that of most other countries, including some of our neighbours (for example, Bhutan spends 2.5 percent of its GDP and Sri Lanka spends 1.6 percent of its GDP on healthcare.)

Some of the challenges of our healthcare system are lack of awareness, lack of access, workforce shortages; and lack of affordability and accountability. Further, as noted by the Harvard School of Public Health, our “underfunded healthcare system in many cases are inefficiently run.” A recent study by the Centre for Disease Dynamics, Economics and Policy estimated that for India’s total population of 130 Crore, the country only has “1.9 million hospital beds, 95 thousand ICU beds and 48,000 ventilators”. Such deep-rooted and extensive issues make India frightfully vulnerable to any healthcare crisis, like the one we are currently experiencing.

Adding to the chaos, a market-driven and market-led system that controls supplies of almost all critical inputs for medical care—drugs and other medical supplies including diagnostic kits, protective equipment and even patient transportation—and poor regulatory oversight by governments has resulted in frequent instances of shortages in supply, skewed distribution of essential inputs and resultant spikes in their prices.

We also witnessed cases of demands of bribes by ambulance driver outside Delhi’s largest hospitals for transferring patients to the medical units. All these discrepancies and anomalies floated up during the COVID scrutiny by people, media houses and even government and all got together to uphold the ‘Godly Profession’ once again.

Building a robust healthcare infrastructure should be the ultimate goal of any nation. If the government cannot do so directly, it should create a policy environment to allow private players to do so. Building such infrastructure will also contribute to creating employment, and can also be a destination for foreign direct investment.

To achieve this, standardization and regulation is the key. A stable policy framework across states to reduce, if not nullify, the uncertainty and its seriously detrimental effects is needed. This standardization has to be complemented by a significant level of deregulation. In order to avoid any misuse of this approach by the private sector, a grievance cell comprised of independent experts can be set up in each state.

Taking action against the crisis, our government has proposed an outlay of INR 2,23,846 Crore for health and well-being, an increase of 137 per cent from the previous year, with INR 35,000 Crore earmarked for COVID-19 vaccine in the coming fiscal. Primary healthcare, one of the most critical elements of healthcare provision in an efficient and equitable system, is now getting strengthened with even the previously neglected urban healthcare component receiving attention and resources. Nearly INR 64,180 Crore will be invested over six years to improve primary, secondary and tertiary healthcare, as part of the newly announced PM Atma Nirbhar Swasth Bharat Yojana.

This will be in addition to National Health Mission. Certain amount from the budget will be used for establishing critical care hospital blocks in 602 districts and 12 central institutions. The budget also mentions the introduction of the National Commission for Allied Healthcare Professionals Bill, along with the soon to be introduced National Nursing and Midwifery Commission Bill. The regulatory improvements and institutional restructuring that have been proposed, will hopefully contribute to improving health outcomes and enhancing economic growth.

Government should be increasingly proactive in setting up hospitals, clinics, and other such healthcare facilities. It can do so by reverse auctioning land, reducing red tape, and taking a strong stand against local troublemakers. Further, the subject of ‘health’ should also be moved from the State to the Concurrent list, as rightly suggested by a high-level group (HLG) constituted by the 15th Finance Commission.

In the urban areas, large hospitals should be set up on a Public-Private Partnership (PPP) basis. For instance, the Punjab government in Mohali announced a PPP tender on a revenue sharing basis, which the Max Hospital chain won and then created a super-specialty centre. Countries such as the UK and Australia too have their own approach to PPPs, wherein they focus on the “development/rehabilitation of facilities and facilities management”.

The World Bank also notes that “India has adopted more comprehensive service delivery PPPs, where not only are the facilities developed and improved by the concessionaire but services are provided.” A ‘Build-Own-Operate-Transfer’ (B.O.O.T) model would undoubtedly be beneficial to all stakeholders. In addition to this, however, the private sector players should also commit a certain, flexible percentage (e.g. 25 percent) of their entire treatment to the Ayushman Bharat Schemes , and provide services at low fees to the poor. On the whole, an enabling structure must be put in improved private sector participation will bode well for an overall improvement in healthcare delivery and deep implementation of the healthcare policies too.

It will be important to shift our focus towards the quality of implementation of the new programmes and schemes as well as on fostering convergence across health programmes. Our efforts should lead to creation of a robust, collaborative ecosystem for the public and private healthcare providers to work together in quest of desirable outcomes. In the face of the current health exigency, all these new initiatives have to be implemented with utmost diligence and seriousness to reach out to the last mile. Unless all are safe, no one is safe!

Infrastructure

The Road Ahead FOR

Massive Rebuilding of Healthcare Infrastructure!

India can generate a staggering $774 billion in revenue and create 12 million jobs by 2030 with an investment of $217 billion in healthcare and allied sectors.preventive and primary healthcare; pharma, drug and vaccine manufacturing; screening, diagnostics and testing; affordable healthcare and operational efficiency; medical tourism; e-healthcare and telecare; health insurance and innovative impact financing; e-pharmacies; medical workforce education and skilling; and gene therapy.Indian healthcare will become the second most attractive investment sector this decade, behind food, agri and agritech but ahead of BFSI, financial inclusion and fintech. COVID-19 has thrown open India's health infrastructure fault-lines and both entrepreneurs and investors are on an epic mission to convert the crisis into an investment opportunity," said Amit Bhatia, founder of Aspire Circle and creator of Impact Future Project.COVID-19 has elevated healthcare and related sectors to the top of the priority list of governments, policymakers and industry in an unprecedented manner, with central government's healthcare expenditure increasing from 1.3 per cent of GDP in 2019-20 to 2.1 per cent of GDP in 2021-22. The last two years have put the healthcare industry in our country through the toughest challenges. The healthcare landscape in the country also threw up the gaps between private and public and urban and rural healthcare like never before. Yet technology interventions have helped to reach out to patients beyond the geographical boundaries of cities and states and cut costs and boost staff productivity while improving overall care and outcomes. Healthcare is now a benchmark for all other verticals of the incredible social impact and welfare with technology disruptions
Though we in India have progressed a lot in providing healthcare and in increasing longevity, we continue to host world's largest number of blinds, diabetics, patients suffering from cancer, heart and several other diseases. Recent pandemic has only highlighted inadequacy on several fronts in healthcare. Though we produce world class physicians, surgeons and nurses, we are woefully short both in reach and (providing) quality medical care at affordable prices to a vast majority of our population. This clearly can be overcome by the combined might of the government, private sector and individual initiatives.

This was the sixth report of a series of reports by Aspire Circle as part of a larger and overarching programme of generating 100 'Impact Ideas for India's Inclusive Growth' with the country's largest collaborative research initiative involving over 200 experts with an eye on shaping India's economy.The ongoing pandemic has brought to sharp focus the structural demand-supply gaps in our country's healthcare systems.

In 2020-21, India spent 1.8% of its gross domestic product (GDP) on healthcare. With ‘health and well-being’ one of the six pillars of the Union Budget 2021-22, the government has committed approximately 2.5-3% of GDP now. Data shows that India has 1.4 beds per 1,000 people, 1 doctor per 1,445 people, and 1.7 nurses per 1,000 people. According to the World Health Organization (WHO), India ranks 184 out of 191 countries in health spending. The US spends over 16% of its total GDP on healthcare, while Japan, Canada, Germany etc. spend over 10% of their GDP on healthcare.

 

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