Ayanabh DebGupta, Co-founder & Jt. Managing Director, Medica Group of Hospitals emphasises that investments in the health system’s resilience in tier 2 and 3 cities must be strategic and targeted if disruption and additional costs are to be avoided. Efforts must also be made to improve the training and retention of healthcare professionals in these areas, as well as to address infrastructure challenges such as unreliable electricity and water supply
India is a vast nation, with the majority of its population living in rural and semi-urban areas. With the rapid pace of infrastructural development, many towns have since evolved into tier 2 and tier 3 cities, with a rising number of amenities. Healthcare is a key factor in the growth and development of these cities, as it plays a crucial role in improving the quality of life for residents. However, there are still significant challenges to overcome in providing accessible and affordable healthcare to all segments of the population.
Due to the availability of specialised treatment and advanced health infrastructure in metropolitan areas, patients frequently travel from tier 2 and tier 3 cities to access these facilities, incurring additional travel costs. In these small cities, there is frequently a logistical gap that deprives patients of medications and essential diagnostic solutions such as MRI, CT scan, advanced pathology, cancer detection solutions, and many others.
Healthcare facilities in tier 2 & 3 cities lack adequate manpower and infrastructural resources and frequently struggle to control the spread of infections and other contagious diseases. Investments in the health system’s resilience in tier 2 and 3 cities must be strategic and targeted if disruption and additional costs are to be avoided. Efforts must also be made to improve the training and retention of healthcare professionals in these areas, as well as to address infrastructure challenges such as unreliable electricity and water supply.
Siliguri, a tier 2 city in West Bengal, greatly benefited from the establishment of private healthcare facilities beginning in the early 2010s. The availability of enhanced services and cutting-edge technology, especially in fields such as cancer treatment, has not only benefited the population of the city, but has also had a massive impact on North Bengal. This success story highlights the importance of private sector involvement in strengthening healthcare systems in tier 2 and 3 cities, as well as the potential for such investments to have a ripple effect on surrounding regions.
In light of the market’s predicted growth to 372 billion dollars in the near future, India has an advantage in the healthcare sector, according to a recent report by IBEF. According to the Economic Survey of 2022, India’s public healthcare spending increased from 1.8 per cent of GDP in 2020–2021 to 2.1 per cent in 2021–2022. The Government of India is planning to increase public health spending to 2.5 per cent of the country’s GDP by 2025. The increased success rate of Indian businesses in receiving Abbreviated New Drug Application (ANDA) approvals is another factor contributing to India’s competitive advantage.
The government and private healthcare providers are establishing satellite healthcare centres in tier 2 and tier 3 cities to provide access to advanced medical facilities without requiring long-distance travel. In addition, telemedicine is emerging as a viable option for providing medical consultations and diagnoses remotely, thereby reducing the burden on patients and increasing their access to high-quality healthcare.
To enable the developmental initiatives, the health sector was allocated Rs 89,155 crores in the 2023–24 union budget. Notably, this allocation is an increase of approximately 13 per cent over the Rs 79,145 crores allocated in the 2022–23 union budget. Better health outcomes will be attained if access to government health services, which are primarily used by the underprivileged and poorer segments of society, is increased. The implementation of innovative programmes and the search for local solutions to health issues will serve as catalysts for quickening the pace of healthcare infrastructure growth, especially in tier 2 and 3 cities.
This increased allocation will also aid in the expansion of healthcare infrastructure, the improvement of medical education and training, and the provision of affordable medicines and diagnostics. The government’s focus on strengthening the health sector is a positive step towards achieving universal healthcare coverage in India. Furthermore, the government’s efforts to promote Public-Private Partnerships (PPP) in the healthcare sector will encourage private investment and enhance the quality of healthcare services provided to citizens. For e.g. To improve health infrastructure under a PPP model, the International Finance Corporation (IFC) has been appointed as lead transaction advisor by the Government of Odisha to roll out the affordable healthcare project where selected private partners will develop affordable hospitals in all the districts in Odisha. The Odisha Affordable Healthcare Project intends to establish each hospital with 100-200 beds with a focus on high-volume secondary care services as well as emergency and critical care services. the as per hub & spoke model. At full capacity, the project will increase the number of beds in the state while also strengthening the availability of private beds and quality services.
Taking these steps towards a larger goal would cause great benefit in the healthcare sector of tier two and tier three cities and this will ultimately lead to a healthier population and a more productive workforce, contributing to the overall growth and development of the country.
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