Healthcare Sector Pushes for 10-Year Digital Healthcare Incentive Plan

The industry also outlined steps to lower healthcare costs and enhance public health funding. Proposals included removing customs duties and reducing GST to 5% on oncology radiation equipment like LINACS to improve access to cancer care in underserved regions.

The healthcare industry has called on the government to introduce a 10-year digital healthcare incentive plan in the upcoming Union Budget 2025-26.

The initiative aims to drive the adoption of the Ayushman Bharat Digital Mission (ABDM) by building digital health infrastructure, enhancing data security, implementing electronic health records (EHR), and fostering collaboration between industry, academia, and start-ups for innovation.

Industry leaders have proposed a dedicated fund to strengthen healthcare services, positioning India as a global leader in medical tourism and high-quality care. Another suggested fund would support research and development while promoting med-tech innovation.

The sector has also highlighted the need for expanded hospital infrastructure, proposing the addition of 2.5-3 million hospital beds across the country. Viability Gap Funding (VGF) and long-term, low-interest capital investments were recommended to encourage participation from mid-sized and smaller healthcare providers.

To address the shortage of medical specialists, the healthcare industry has urged increased government investment in medical education. Proposals include expanding MBBS and postgraduate seats and leveraging alternative financing mechanisms such as loans and interest subventions. Additionally, a 75%-100% hike in tuition fees for private DNB programs was suggested to fund capacity building.

"India's healthcare sector is at a defining crossroads, presenting both complex challenges and transformative opportunities. The upcoming Union Budget offers an unprecedented chance to address systemic gaps such as the acute shortage of medical specialists, escalating cancer care costs, and inadequate hospital infrastructure to meet the demands of a growing population," said Abhay Soi, President of NATHEALTH and Chairman & Managing Director of Max Healthcare Institute Limited.

Additionally, the federation recommended creating a separate fund to support research and development and reward medtech innovation in the country.

"By implementing strategic reforms, we can pave the way for a robust, equitable, and innovative healthcare system. Expanding hospital capacity, viable reimbursement frameworks, reducing treatment costs, and advancing medical education will not only address current challenges but also secure India's position as a global healthcare leader. These efforts will ensure a healthier and more sustainable future for all," he added.

The industry also outlined steps to lower healthcare costs and enhance public health funding. Proposals included removing customs duties and reducing GST to 5% on oncology radiation equipment like LINACS to improve access to cancer care in underserved regions.

It was further recommended that proceeds from healthcare cess and a proposed 35% GST slab on tobacco and sugar products be allocated to public health programs. A unified 5% GST on all healthcare goods and services was also suggested to reduce input costs.

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