Budget wishlist: Health care sector

KEY DEVELOPMENTS

• Universal health care for enhanced financial access and physical access to medical care.
   
• Regulatory framework and incentives for start-ups in the health care sector, especially in Tier-II cities and beyond.
  
  
   
• Development of skilled human resources in health for traditional health care delivery models (hospitals, nursing homes) and newer delivery models (home and digital health care).
  Read our full coverage on Union Budget 2016
   
• Disparity among states in public and private health care (infra, education and budgetary).

KEY ISSUES

• Provider to payer: The govt moving away from being a provider to payer, pressuring prices. This may affect quality in the long run. 
   
• Little scalability: Despite public-private partnerships having had success, especially in the diagnostic space, scalability and replicability across India are yet to take place

Dr Rana

EXPERT VIEW: Dr Rana Mehta

PwC expert answers Business Standard readers' questions on what to expect from the Budget

Saarim: Govt hospitals, in the longest standing cliche, are known for ill maintenance and low medical standards. Now, with the NITI Aayog in the picture, what measures can be put in place to ensure long-term financial structures are accessible to both patients and doctors? 

Under the schemes like the National Rural Health Mission, many states took advantage and worked towards improving their infra and quality of public hospitals' service. As a large part of central allocation now lies with states, the central government and the NITI Aayog will have limited influence on state governments.

ARNAB: In 2015, health care’s share  of GDP shrank to 1.2%, one of the lowest in the world. Public health is ignored, given the lack of scale and funds. Will this govt make appropriate provisions in the Budget?

The govt seems to be focusing on financing care for citizens as part of universal health care; some initiation of the programme may be announced this year. Also, the government is focusing on opening medical colleges in all district hospitals across the country. This will improve the availability of medical professionals.

S KUMAR:The eligibility to qualify as senior citizen at some hospitals like PGI, Chandigarh, is 70 years. Do you think the Budget will standardise it to the nationally recognised 60 years?

The government might initiate schemes for implementation of accreditation and rating for all hospitals, including public ones. This will ensure improvement in quality of service. Also, there may be plans to merge all central govt health insurance schemes into one. This may help standardise policies and services across and requirements across hospitals.

Dr Rana Mehta

Leader (Health care), PwC India

Bhavdeep Singh

CEO, Fortis Healthcare

“Health care should be a national priority and addressed appropriately in the Budget. Clear guidelines — with an industry status to health care, matching tax sops for capital expenditure and an appropriate tax holiday for new and existing hospitals that are upgrading — are essential. Continued exemption under the future GST regime must be factored in to galvanise investment for creation of health care infra.”