India’s public healthcare system is in dire need for the intervention of policy makers

Paul Abraham, President, Hinduja Foundation highlights that the COVID-19 pandemic has brought focus on healthcare from every quarter. The people, the policy makers and political class, all have realised that health and education can no longer be ignored and the demand for world-class healthcare infrastructure has reached a crescendo

Investment in public health infrastructure

In 2017-18, India allocated only 1.28 percent of its GDP to health as compared to roughly 18 percent in the United States and significantly less than its neighbouring countries including Sri Lanka (1.4 percent), Indonesia (1.4 percent), and Bangladesh (1.4 per cent) (1.68 per cent).

The COVID-19 pandemic has brought focus on healthcare from every quarter. The people, the policy makers and political class, all have realised that health and education can no longer be ignored and the demand for world-class healthcare infrastructure has reached a crescendo. The government in India has aptly responded by increasing the expenditure on healthcare with a commitment to further bring additional focus on health infrastructure and solutions that are closer to the people.

Digitising access to healthcare

India in one of the fastest growing digital economies in the world is an imperative but the uptake of digital solutions for healthcare services has not generated adequate confidence in entrepreneurs to explore this space with enthusiasm. While COVID-19 did accelerate health-tech interventions, penetration of the same beyond urban geographies is miniscule. But things are definitely moving in the right direction. Investors are now willing to explore participation in the high gestation, high volumes opportunities beyond urban India rather than focus purely on high-margin businesses, often limited to urban areas. Government has laid the foundation for such high-tech start-ups to target the hinterland with programs such as Atal Innovation Mission (AIM), Pradhan Mantri Mudra Yojna (PMMY) among others. Such programs and increased investor interest will ensure access to high quality healthcare solutions and services and thus make the system stronger and more functional.

Leveraging the power of policy makers and government initiatives

There is no doubt that India’s public healthcare system is in dire need for the intervention of policy makers and government initiatives. There has been a modest increase in budget allocations over the last few years, but this has to increase to a large extent. The recommendation of the National Health Policy is that budget outlay of both Centre and State should be increased to over 2.5 per cent. Further, it is also recommended that state budgets are allocated with an increased 8 per cent of the total budget. The Prime Minister’s  Ayushman Bharat Digital Mission (ABDM) is a quintessential example of government intervention to better the public healthcare system. The country needs more such interventions. Embedding digital technologies into such policies can make the entire process a lot more seamless and accessible for people across the country.

Acknowledging the importance of preventive care

India is home to one of the world’s largest infrastructures for primary healthcare. However, for the larger part, the majority of this infra is also dysfunctional. However, with the changing times, we too have adopted a more wholesome approach to primary and preventive healthcare. We have the legacy of carrying out the world’s largest mandatory vaccination program since 1978. We undertook the massive COVID-19 vaccination program and successfully administered more than 2.9 billion doses in a short span of 24 months. These programs have ensured that the general population is now seeking primary care in India and this is music to the ears of a nascent industry that will, with the right support, flourish in the years to come.

A key element that the central and state governments have to recognise in prevention is the importance of basic quality of life indicators. Quality of Air, Quality of Water, Green Spaces to exercise and destress are all essential to building communities of healthy citizens. So, many of our health issues arise out of poor environmental conditions and sanitation.

Ensuring health coverage for all

While there are more than 50 insurance companies in India, and many of them with a net worth of a few billion dollars, when it comes to insurance penetration, it is less than 15 per cent. The Health insurance penetration is even more modest. A lot of people in India are wary, mostly from lack of information and awareness. The Ayushman Bharat insurance scheme by the Government of India is a step in the right direction. It creates an ecosystem that realizes the importance of a health cover and should eventually lead to more acceptance of health insurance as an investment that secures the future of one’s family and loved ones.

India has come a long way in terms of healthcare services and their accessibility since independence. But we still cannot compete with the developed world on many desirable parameters. As we make our way to a USD 5 trillion economy, we must ensure that we support investments in innovations in health, healthcare solutions and health technologies. R&D in healthcare and healthcare technologies will ensure that we develop the solutions that are best suited for our problems rather then be guided by others. This space is only just beginning to excite and there are more exciting days to come.