India has 16 per cent of the world’s population, 18 per cent of the world’s mortality, 20 per cent of the world’s morbidity and healthcare expenditure in the country is a miniscule one per cent of global expenditure. As one of the fastest growing economies in the world, we cannot afford to rank 171 out of 175 amongst countries surveyed by the WHO in terms of percentage of GDP spent in public sector on healthcare.
In the same survey, India ranks 17th in terms of private sector spending on health which now contributes 4.3 per cent of the GDP spent on healthcare in the country. Amongst the BRIC countries India ranks the lowest with a 5.2 per cent of the GDP spent on healthcare while Brazil spends 7.6 per cent, Russia 6.1 per cent and China 5.4 per cent.
Its time for the policy makers to work on some of the most important healthcare reforms
- Give infrastructure or national priority sector status to the sector to support and improve the overall investment in the sector both at the urban and rural level.
Govt spending on healthcare must increase to 2 per cent of the GDP from the current 0.9 per cent to provide higher outlay for healthcare infrastructure expansion and provision. Public and private healthcare combined spending should target 7 per cent of the GDP.
-Reallocation of resources of Govt spending on healthcare, higher outlay towards health insurance coverage schemes to widen affordability and accessibility.
- A national disease surveillance authority to be set up under the Ministry Of Health to consistently map, monitor and survey the prevalence of disease segments amongst the population in the country.
- Provide immediate impetus to grow the health insurance sector. Table and pass the Insurance reform bill to increase FDI in health insurance cos; to 49 per cent. Move towards compulsory health insurance coverage.
- Introduce healthcare investment zones to provide medical technology cos; and consumable manufacturer’s subsidized real estate and 10 year tax holiday to help local growth of this industry.
- Introduce a wellness tax incentive for employers towards implementation of preventive and wellness initiatives for employees and their families.
- Reform medical education system to enable higher private sector participation.
