Context: Health and economy should be closely intertwined for boosting economic growth.
Problems associated with Health Sector in India
Low public expenditure on health: At present, it is only 1.3 % of Gross Domestic Product (GDP).
High out-of-pocket expenditure: around 58 %.
Inefficacy of insurance: Salary deductions (Labour taxes) for insurance purchase are not feasible since much of the workforce is in the informal sector.
Ways to Improve Health Sector in India
Increase public expenditure on health: to 2.5 % of GDP by 2025, from the present 1.3 % (20-25 % increase in the overall allocation to health is needed.)
Centre-state collaboration: The states should increase their allocations for health while the Centre should set the pace.
Raise revenue for the health sector: Through higher taxes on tobacco products, ultra-processed foods and beverages, alcohol and luxury vehicles.
Healthcare targeting and increasing accessibility:
Reduce out-of-pocket expenditure: to 15-20 % recommended by the World Bank and the World Health Organisation. (using programmes of universal health coverage)
Equal importance to short (pandemic) and long-term needs (sustainability): For assurance of sustained efficiency and equity in health services.
Through increased allocations for both rural and urban primary care.
Activating Urban Health Mission that enhances cold storage.
Focus more on Primary healthcare: As it serves the whole population, offers the largest package of services and is cost-optimising.
The commitment made by the National Health Mission to allocate two-thirds of health financing to primary care should be realised.
Link primary, secondary and tertiary levels of care: For enabling comprehensive, continuous and connected care for many chronic diseases.
Cover “missing middle” in Government programmes:
Linking Pradhan Mantri Jan Arogya Yojana with the National Health Mission can provide coverage for out-patient care.
Focus on elderly care, disability services and mental health.
Healthcare Infrastructure Development:
Support Surveillance systems, laboratory capacity and upgrade hospitals.
Develop health workforce: By expansion of a multi-layered, multi-skilled health workforce through investments in training institutions (in partnership with states)
Multi-disciplinary expertise shall be fostered by expanding training institutions and creating public health cadres (as recommended by National Health Policy 2017).
Allocate more funds for Health research: especially in the area of implementation research to ensure that more money for health translates to more health for the money.
Incentivise Health technologies: To enhance the effectiveness and equity of health services, through appropriate and affordable innovations.
Enhance quantity and quality of medical products: For this “Make in India” must support domestic pharmaceutical, vaccine and medical equipment makers.
Conclusion: Higher financial allocation is needed for the health system to deliver sustained benefits of better health and a brighter economy to the nation.