Healthcare Leaders Demand Increased Funding, Innovation, Responsive Emergency Services, Others

As India draws near to the Union Budget 2024-25 tomorrow, healthcare leaders from different industry segments outlined their hopes for a budget that addresses immediate needs and lays a foundation for long-term growth and innovation.

They voiced several concerns, including increased funding, prioritizing preventive healthcare, enhancing emergency services, and supporting R&D in the pharmaceutical sector.

It is to be noted that the interim budget was presented on February 1, 2024, with the final Union Budget to be announced on July 23, 2024.

DHN talked to several leaders to understand industry sentiments. Let us read here what are the key expectations they have from the Union Budget 2024-25.

A Call for Increased Funding

Vikram Thaploo, CEO, Telehealth, Apollo Hospitals Enterprises Limited, emphasized the need for a robust healthcare environment to support India's economic growth.

He pointed out that the Ministry of Health and Family Welfare was allocated INR 89,155 Cr in the Union Budget for 2023-24, marking a 3.4% increase from the previous fiscal year. However, he stresses that this increase is insufficient to meet the growing demands of the healthcare sector.

"We expect a budget that strengthens the basis of healthcare in our nation, since India's economic growth is heavily dependent on a robust and resilient healthcare environment," said Thaploo.

He advocated for strategically allocating funds that integrate Research and Development (R&D), Public-Private Partnerships (PPP), and increased funding for rural healthcare facilities. Promoting PPP models can harness the expertise of the private sector to enhance public healthcare.

Additionally, substantial investment in R&D is crucial for developing innovative solutions to regional health issues. Thaploo also highlights the importance of allocating more funds to construct and modernize healthcare institutions in rural areas to ensure fair access to healthcare.

Prioritizing Promotive & Preventive Health Measures

Dr Sujit Paul, group CEO of Zota Healthcare, underscored the importance of promotive and preventive health measures alongside sanitation initiatives under the Swachh Bharat mission. According to him, a comprehensive agenda to transform the healthcare sector is crucial for creating a healthy India.

"The newly-elected governments should prioritize promotive and preventive health measures, as well as sanitation under the Swachh Bharat mission. A comprehensive agenda aimed at transforming the healthcare sector is crucial for creating a healthy India," states Dr Paul.

He calls for increased government spending on healthcare to achieve universal health coverage and effectively address pressing issues. Expanding the Ayushman Bharat scheme and implementing a revised schedule for quality drug production and the pharma marketing code should be top priorities for the Health Ministry and the Department of Pharmaceuticals.

Boosting the Healthtech Industry

Surjeet Thakur, founder & CEO of Triotree Technologies, highlighted the significant expectations of the healthtech industry for the upcoming budget. He envisioned a robust policy framework that fosters innovation, ensures quality healthcare, and supports the industry's growth to achieve its projected $50 billion mark by 2025.

"The health tech industry seeks a robust policy framework that fosters innovation, ensures quality healthcare, and supports the industry's growth to achieve its projected $50 billion mark by 2025," stated Thakur.

He called for reducing import duties on medical devices, streamlining GST policies, and enhancing funding for R&D. Additionally, increased investment in healthcare infrastructure, particularly medical device parks, is essential to boost local manufacturing and reduce import dependency.

Thakur believes that addressing these needs will make India a global hub for health tech and ensure accessible and affordable healthcare for all.

Enhancing Emergency Medical Services

Prabhdeep Singh, founder and CEO of Red.Health, emphasized the importance of bolstering emergency medical services across India. He advocated for allocating budgetary resources to integrate 5G digital health infrastructure, enabling seamless communication and coordination.

"We eagerly await the Union Budget for 2024-25 with optimism for bolstering emergency medical services across India. The government should allocate budgetary resources towards integrating 5G digital health infrastructure, enabling seamless communication and coordination," Singh stated.

He also emphasized investing in paramedic training programs and expanding health insurance coverage for emergency services under the Ayushman Bharat scheme. Furthermore, incentivizing private sector investments through tax breaks will enhance emergency pre-medical care segment efficiency.

Supporting the Pharmaceutical Sector

Harshit Jain, founder and global CEO of Doceree, looks forward to robust support for R&D and innovation in the pharmaceutical sector through higher fiscal incentives and reduced GST on critical inputs. He believes these measures will spur growth, foster technological advancement, and further fortify India's leadership in global healthcare.

"Budget 2024 is a defining moment for the pharmaceutical sector in India. We look forward to robust support towards R&D and innovation through higher fiscal incentives and reduced GST on critical inputs to spur growth, foster technological advancement, and further fortify India's leadership in global healthcare," said Jain.

Comprehensive Budget Expectations for Healthcare

Aryaman Tandon, managing partner of healthcare at Praxis Global Alliance, outlines detailed budget expectations that encompass various aspects of the healthcare sector.

He anticipates a 2% rise in allocation from INR 89,115 Cr in FY24 to INR 90,658 Cr in FY25 for improved infrastructure, accessibility, and quality. This includes increased funding for public health programs, especially targeting infectious diseases and maternal and child health.

Tandon emphasized the need for a 95% increase in funding for rural healthcare under PM-ABHIM, from INR 2,100 Cr in FY24 to INR 4,108 Cr in FY25, aimed at developing primary and community health centers and upgrading existing facilities with advanced equipment.

He also called for a 4% increase in funding for the Ayushman Bharat (PMJAY) scheme, from INR 7,200 Cr in FY24 to INR 7,500 Cr in FY25, to provide wider coverage and include more beneficiaries.

Increased funding for medical research, particularly focusing on indigenous solutions, is also crucial, with biotechnology research funding expected to double from INR 500 Cr in FY24 to INR 1,100 Cr in FY25.

Tandon also called for promoting digital health initiatives, such as telemedicine and digital health services, to improve access, especially in remote areas. An allocation of INR 250 Cr for the National Digital Health Mission is expected to develop robust health data management systems.

Support for the pharmaceutical and biotechnology sectors through the PLI scheme, with an allocation of INR 6,200 Cr for FY25, will help reduce import dependency and streamline regulatory frameworks for faster approval and availability of new drugs and devices.

Lastly, Tandon stresses the importance of increasing the budget allocation for mental health programs and initiatives by 10%, from INR 919 Cr in FY24 to INR 1,010 Cr in FY25.

This includes expanding counseling and support services at primary healthcare levels. Encouraging Public-Private Partnerships (PPPs) through tax incentives and subsidies for private-sector investment in healthcare infrastructure and services will leverage private-sector efficiency and enhance the overall healthcare system.

Wrapping Up

The Union Budget 2024-25 presents an opportunity for the Indian government to address the multifaceted needs of the healthcare sector. By strategically allocating funds and implementing supportive policies, the government can foster innovation, improve healthcare infrastructure, and ensure accessible and affordable healthcare for all.

The insights from industry leaders highlight the critical areas that need attention and provide a roadmap for achieving a robust and resilient healthcare system in India.