PPP model in health sector inevitable due to limited fiscal space: Jayant Sinha

The Minister also said that there should be two components in the health strategy; pro-poor and pro-market policy

Jayant Sinha, Minister of State for Finance, said that given that India’s fiscal space is limited, there should be meaningful tie-ups between private and public sector in the health sector to ensure that the resources are spent economically, reached the target group and also to open up alternative channels of funding.

While addressing a session on ‘Universal Health Assurance of CII Health Summit’, the Minister said that there should be two components in the health strategy; pro-poor and pro-market policy. While pro-poor policy should receive greater focus of the Government, particularly in revamping the public health centers (PHCs), secondary and tertiary sectors can be largely driven by the markets by introducing attractive and innovative health insurance policies, which would lighten the burden of the patients.

Responding to a suggestion from a panelist that the excess capacity with the private hospitals could be availed by the Government through a negotiated price, Sinha said that there could be many such innovative solutions that could be worked out. For instance, he revealed that he was discussing with Coal India in Jharkhand whether the hospital run by it, could cater to the general public by charging a capitation fee or any other scheme that could take care of the cost.

To another suggestion from the panelist whether industry status should be given to the health sector, the Minister observed that these issues have to be discussed threadbare amongst the stakeholders and other Governmental departments. “The working group suggested by Health Minister, Nadda earlier in the session, would be the right platform for hammering out such issues,” he added.

The Minister said that there was a need for evolving innovative PPP models based on experiences in states where the healthcare system was relatively better. “We have to build on such models by stacking additional facilities so that they become complete,” he added.

Responding to a question from the floor as to why India should not manufacture expensive medical equipment like stent, which can help lower the prices considerably, the Minister said that under Make in India Program, there was focus on indigenising such manufacturing equipment. He also said that the Government was also looking into the inverted duty structure that makes import of such equipment less costly and would take corrective measures for promoting health equipment manufacturing in India.

The other points put forward by the panelists included corporatisation of medical education, strengthening the regulatory system and knocking the barriers that prevent the coming together of public and private sector to promote universal health, need for model central laws which can be adapted by the states etc. To these, the Minister responded by telling that the Working Committee to be constituted should look into such issues and solutions evolved through a consultative process by the stakeholders.