If the Govt truly seeks to involve private capital, the Union Budget must relax unrealistic price restrictions and nix outdated rules

Now when the Union Budget 2021-22 is around the corner, in the midst of one of the worst public health emergencies faced by humanity in recent memory, it is high time for the healthcare industry to articulate its concerns and expectations. Only a well-formulated and balanced annual financial statement with adequate allocation and focus on all critical segments, as well as on secondary aspects, can prepare the country to improve its health services and meet the challenges of inoculating such a large population as ours. 

Need to address poor spending on healthcare: There is an urgent need to raise the allocation on health as a proportion of the Gross Domestic Product (GDP). The gap is so large and the population so underserved that this would have to be done for several years in succession to alleviate the situation.

The forthcoming financial statement should focus on significantly higher allocations for Research & Development (R&D) in biotechnology, epidemiology and pharmaceuticals including vaccines and in building healthcare infrastructure. The ongoing pandemic reiterates the need for increased public spending on healthcare which is still in the range of 1.3 per cent of the GDP, far lower than what has been stated and promised.

More allocation must for infrastructure and skill development: It is another key area that the Government should prioritise. India has less than a bed and a doctor per 1,000 population, far lower than the World Health Organisation’s (WHO’s) standards. We need to invest in setting up an increased number of medical colleges with requisite infrastructure while giving due importance to key departments which play a significant role in preventing infections in hospital environments, apart from the operating rooms and Intensive Care Units (ICUs). There is also a pressing need to contain the problem of antibiotic and antimicrobial resistance for getting the desired improvement in overall outcomes. If the Centre truly seeks to involve private capital it must relax unrealistic price restrictions and do away with outdated rules.  One initiative that can be taken is to ask the medical and pharmaceutical companies to direct their Corporate Social Responsibility funds for development of healthcare infrastructure and capacity building.

Expansion of digital healthcare must be the focus of the Union Budget: The country needs connected healthcare — a digital ecosystem where real-time data from top Government and private hospitals and diagnostic centres flows into a data centre that tracks, monitors and predicts changes in disease patterns, so that timely action can be initiated to obviate the expensive follow-on treatment. In this context, the National Digital Health Mission is a step in the right direction. It needs to be strengthened and investments are required to be made to create the infrastructure and capacity for collecting and analysing data.

Need to expand the ambit of medical insurance: The annual financial statement 2021 also needs to ensure that medical insurance is extended as much as possible to drive the idea of universal healthcare in the country. Treatments like dental procedures, mental healthcare and homecare for the sick need to be included as part of health insurance policies.

Therefore, the Union Budget must be a well-thought out document from the healthcare sector’s perspective and the allocation of 1.6 per cent of the GDP in the previous Budget must be improved under all circumstances.