To bridge the huge infrastructure gap, India will need much more participation from the private sector and for these conventional modes of healthcare funding will need to be aided by innovative modes funding to improve healthcare investments in India, reveals a Nathealth-PwC report.
The paper says innovative modes of funding are needed to meet the requirements of the healthcare sector which has also been highlighted in recently unveiled New Health Policy 2017 by the Government. The New Health Policy 2017 aims at universal health coverage and affordable quality healthcare services to all.
Dr Rana Mehta, Partner and leader, Healthcare PwC India, said “Access to capital has been one of the biggest roadblocks to the growth of the Indian healthcare sector. Today, the Indian Government spends only about 1.5 per cent of its GDP on healthcare, which is among the lowest globally for any country. Along with building highways, firing up our power plants and ensuring there is a roof over every Indian’s head, there is a need to focus on the healthcare needs of the country.”
The Report was released in the presence of Faggan Singh Kulaste, Minister of State, Ministry of Health and Family Welfare, Government of India.
The Report recommends four scaling innovative modes which should be introduced for funding Indian healthcare. These include Fund of funds such as Pension funds, Investment route through PPP, long term debt. Report bats for financing through pension funds which may provide access to a large pool of money. It also suggested funding through business trust entity like Real Estate Investment Trusts along with bilateral investment treaties.
The Report also examines the key challenges the healthcare industry is facing and the opportunities with which Indian Health Care system can overcome these challenges “With a 22% shortage of primary health centres (PHCs) and 32% shortage of community health centres (CHCs), it is estimated that 50% of beneficiaries travel more than 100 km to access quality care.
India has only 1.1 beds per 1,000 populations in India compared to the world average of 2.7. Most physicians are located in urban areas, resulting in significant access issues in the rural regions.”