How a PPP can overhaul India’s health infrastructure

Source: Times of India

Relevance: Public and private sectors can work together to modernise the Indian healthcare system.

Synopsis:

The coronavirus pandemic has exposed many weaknesses in India’s healthcare system. But it has also presented an opportunity to change the healthcare landscape.

Present needs for the Indian healthcare system:

• India can get ICU beds, ventilators and machines. But a large, well-trained healthcare workforce is critical to run them.
• Further, India also needs affordable medical education.
• Healthcare is highly capital intensive and labour-intensive. So, the government has to figure out schemes whereby out-of-pocket expenses can be reduced, whether it is through Ayushman Bharat, community health schemes or CSR funding.

Why we need the PPP model in the health care system?

• The private sector accounts for more than 70% of India’s healthcare market. So, the PPP model can expand access to healthcare.
• Human capital, financial capital and management are scarce in the government sector, the Private can complement that.
• Expanding India’s healthcare infrastructure also presents an opportunity for the private sector. Further, a lot of private healthcare is provided by smaller setups – 10-20 beds run by individual doctors. So there is a huge opportunity for private healthcare players.

Suggestions to improve healthcare in India:

• Medical debt forces 66 lakh families below the poverty line every year. Now insurance schemes like Ayushman Bharat are in place, digitising the scheme is the next step. This will make healthcare interoperable across India.
• India needs to reduce its import dependence. About 30-35% of our hospital project cost is medical equipment and technology. For a long time, India has relied on international brands for equipment such as MRIs, CTs and ultrasounds. So, India needs to build up its own manufacturing capacity for equipment and Vaccines.
  • Eventually, it will make India the manufacturing hub of the world for medical devices rather than importing them
• The government aimed to provide drinking water to every rural household by 2024. India can have a programme like this for a massive upswing over the next few years in health infrastructure.