India’s healthcare system on right track.

Source-This post on India’s healthcare system on right track has been created based on the article “Good news for India’s healthcare system” published in “The Indian Express” on 3 May 2024.

UPSC Syllabus-GS Paper-2-Issues Relating to Development and Management of Social Sector/Services relating to Health.

Context-The article highlights the progress made by India in providing quality health care facilities in last few years. This improvement also demonstrates India’s commitment to achieve its goal of providing quality and affordable healthcare for all, as outlined in the National Health Policy (NHP) 2017.

What are some of the recent trends in India’s healthcare spending?

1) Government health expenditure (GHE) as a proportion of GDP has increased by 63%, rising from 1.13% in 2014-15 to 1.84% in 2021-22.

2) Per capita government expenditure on health has nearly tripled from Rs 1,108 in 2014-15 to Rs 3,156 in 2021-22.

3) Spending on government-funded insurance has increased, rising 4.4 times from Rs 4,757 crore in 2013-14 to Rs 20,771 crore in 2021-22. This increase reflects higher investments in programs like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PMJAY).

What trend has been observed in out-of-pocket expenditure (OOPE) as a share of total health expenditure?

There has been a consistent decline in out-of-pocket expenditure (OOPE) as a share of total health expenditure, dropping from 62.6% to 39.4% between 2014-15 and 2021-22.

 What are the reasons behind this trend?

1) Utilization of services-Free ambulance services, improved government secondary and tertiary services, and the Pradhan Mantri National Dialysis Programme have all played significant roles in reducing out-of-pocket expenditure.

2) Free Drugs and diagnostics–

A) Free drugs and diagnostics services in facilities, including those at over 1,69,000 Ayushman Arogya Mandirs (AAMs, Health and Wellness Centres) have led to major financial savings for families.

B) More than 10,000 Jan Aushadhi Kendras sell over 1,900 quality generic medicines and nearly 300 surgical items at affordable prices across districts. Since 2014, this scheme has saved consumers an estimated Rs 28,000 crore.

3) Price Regulation– Regulating prices of coronary stents, orthopedic knee implants, cancer drugs, and other vital medicines has saved people Rs 27,000 crore each year.

What is the impact of access to safe drinking water on health?

1) Access to safe drinking water and sanitation significantly improves health. When the Jal Jeevan Mission launched in 2019, only 17% of rural households had tap water. Now, about 76% have access to functional household tap connections. As per a WHO report, once tap water is made available in every rural household, it would save four lakh lives over five years.

2) The WHO predicts that the Swachh Bharat Mission (SBM) Grameen, which made rural India open defecation free (ODF), could have prevented over 300,000 deaths from diarrhea and malnutrition between 2014 and October 2019.

Mention some of the important healthcare schemes to embolden health infrastructure in India?

1) Pradhan Mantri Swasthya Suraksha Yojana-This is aimed at creating medical colleges and new AIIMSs.

2) Pradhan Mantri Ayushman Bharat Infrastructure Mission– This aims to strengthen the public health infrastructure in cities and villages so it can effectively handle health crises or outbreaks.

Read more- PM ABHIM (Ayushman Bharat Health Infrastructure Mission)

3) Emergency Response and Health System Preparedness Package –This is aimed at developing pediatric and adult ICUs.

4) 15th Finance Commission grants– The health grants, totaling Rs 70,000 crore under the 15th Finance Commission award, are being injected into the primary health system.

The rising trends in public health expenditure and a steady decrease in OOPE alongside increasing shares of GHE and social security schemes on healthcare, indicate a move towards a more progressive health system.

Question for practice

Highlight the factors that have contributed to decline in out-of-pocket expenditure (OOPE) as a share of total health expenditure in India?