CGHS

The healthcare sector in India is advocating for increased public health spending in the upcoming Budget 2024, urging the government to raise public health expenditure above 2.5 percent of the GDP. The industry is also calling for an Ayushman Bharat-like scheme specifically for the middle class to address healthcare needs more comprehensively. Key Recommendations: Increase Public Health Expenditure: The Healthcare Federation of India (NATHEALTH) has emphasized the need for the government to boost healthcare spending to over 2.5 percent of GDP. This increase is seen as crucial for enhancing infrastructure, addressing demand and supply challenges, and improving overall social insurance. Expand Healthcare Facilities: Abhay Soi, president of NATHEALTH and chairman of Max Healthcare Institute, highlighted the necessity for two billion square feet of advanced healthcare facilities. Expanding healthcare infrastructure in smaller cities and advancing digital healthcare services are also top priorities. Comparison with Other Countries: According to the Economic Survey 2022-23, healthcare expenditure by the Centre and state governments reached 2.1 percent of GDP in FY23. In comparison, OECD data shows that the US had the highest health expenditure to GDP ratio at 16.6 percent in 2022, while India’s was at 2.9 percent. Middle-Class Healthcare Scheme: Industry leaders, including PD Hinduja Hospital CEO Gautam Khanna, suggested implementing a healthcare scheme similar to PM-JAY for the middle class. This would require allocating 2.5-3.5 percent of GDP to healthcare to ensure broader coverage and affordability. Policy Reforms and Innovations: Suneeta Reddy, Managing Director of Apollo Hospitals, emphasized the need for the government to prioritize the healthcare sector to spur growth and productivity. The industry is also advocating for easing compliance burdens, promoting medtech innovation, rationalizing the goods and services tax (GST), and reviewing the health cess on medtech products. As the first Budget of Modi 3.0 approaches, the healthcare sector’s recommendations highlight the critical need for increased investment and policy support to enhance India’s healthcare infrastructure, improve access to quality healthcare, and ensure affordability for all citizens. Boosting public health spending is seen as a vital