As India's new government takes office, there is renewed hope and heightened expectations within the healthcare sector. The Lok Sabha election of 2024 brought healthcare to the forefront, with promises of substantial improvements over the next five years. Industry leaders and experts are now eager to see if Modi 3.0 will fulfill these promises, particularly in expanding the Government’s flagship Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) health insurance scheme for the poor. Expectations also linger on increasing public health spending, accelerating the Ayushman Bharat Digital Mission (ABDM), and pushing for extensive skill development in healthcare.
Strengthening Ayushman Bharat: A Lifeline for the Poor
The Ayushman Bharat scheme, also known as the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), is the government’s flagship health insurance scheme for the poor. Rolled out in 2018, it is the largest health assurance scheme in the world. It provides health coverage of Rs 5 lakh a year for secondary and tertiary care hospitalisation to over 120 million poor families—about 550 million individuals who make up the bottom 40 per cent of the Indian population.
This scheme has been a game-changer for the financially disadvantaged, offering free treatment options for various surgeries such as knee replacements, hip replacements, and treatments for congenital heart diseases. The Union Health Ministry is planning to expand the scope of the scheme to cover more expensive cancer and transplant-related surgeries and treatments, which would further alleviate the financial burden on the poor and ensure they receive the necessary medical care.
Extending Ayushman Bharat to Senior Citizens
One of the significant measures anticipated in the Modi 3.0 government's 100-day action plan is the extension of Ayushman Bharat to include individuals aged 70 and older. This initiative aims to bring six crore senior citizens under the scheme's umbrella, addressing a critical gap as most medical insurance firms refrain from providing coverage to individuals in this age group.
During the release of the BJP’s Lok Sabha manifesto in April, Prime Minister Modi declared the inclusion of senior citizens aged 70 and above as well as the transgender community in the coverage of the Ayushman Bharat Yojana. This move is expected to provide much-needed relief to elderly citizens who often face higher healthcare costs and limited insurance options. Ensuring access to quality healthcare for older adults will improve their quality of life and contribute to the overall health of the population.
Expanding & Accelerating ABDM
The Ayushman Bharat Digital Mission (ABDM), launched in September 2021, aims to make healthcare more accessible and affordable through technology. By enabling electronic health records, telemedicine, and e-pharmacies, ABDM seeks to create a digital ecosystem for healthcare service delivery. This initiative has the potential to transform India's healthcare industry, driving it from a value of USD 2.7 billion in 2022 to approximately $37 billion by 2030, according to a report by Boston Consulting Group (BCG) and B Capital.
The digital transformation is being propelled by rapid digitisation, the proliferation of innovative health tech platforms, and partnerships between startups and established companies. The government’s support through initiatives like ABDM is crucial in creating a favourable funding environment for viable business models. However, the public sector alone cannot achieve universal health coverage in India. A robust public-private partnership is essential, leveraging compliance with government programs like ABDM to ensure seamless healthcare delivery.
Healthcare providers must integrate digital technologies into their operations to enhance patient care and streamline processes. The adoption of electronic health records, telemedicine platforms, and other digital tools can significantly improve efficiency and patient outcomes. Strategic partnerships with tech companies specialising in healthcare innovations will be key to optimising operations and enhancing care delivery.
Enhancing Healthcare: Skill Development Initiatives
The demand for quality healthcare services in India is surging, yet the sector faces significant challenges, including inadequate infrastructure and a shortage of trained professionals. Addressing these issues requires a concerted effort in skill development. The Indian government and various corporate stakeholders have initiated comprehensive programs to equip the healthcare workforce with the necessary skills and knowledge.
These initiatives are critical for addressing the shortage of skilled healthcare professionals and improving care standards across the country. The healthcare sector is diverse, encompassing clinical care, diagnostics, administration, and support services. To meet the evolving demands, there is an urgent need to enhance the skills of healthcare professionals, ensuring they are well-equipped to deliver high-quality care.
Training programs focusing on digital health, clinical skills, and healthcare administration are essential. By fostering a culture of continuous learning and professional development, the healthcare sector can adapt to new technologies and practices. Moreover, healthcare institutions should emphasise digital health-centric accreditation programs and certifications to stay abreast of industry standards and best practices.
Strategic Partnerships & Digital Mindset
The success of these initiatives hinges on the leadership within healthcare organisations. Hospital leadership teams must embrace a digital mindset, recognising the value of technology in transforming healthcare delivery. This involves not only investing in digital tools but also fostering a culture that supports innovation and continuous improvement.
Strategic partnerships with players engaged in revolutionising healthcare training and delivery are crucial. Collaborations with tech companies, educational institutions, and industry experts can help develop cutting-edge training programs, optimise operations, and enhance patient care outcomes. By leveraging the expertise and resources of various stakeholders, healthcare organisations can drive significant improvements in service delivery and operational efficiency.
Economic Benefits of a Robust Healthcare System
Investing in healthcare not only improves public health but also has substantial economic benefits. A healthy population is more productive, contributing to economic growth. Moreover, a well-developed healthcare system can attract medical tourism, boosting revenue for private hospitals and establishing India as a global healthcare leader.
The National Health Policy (NHP) 2017, which promises to increase public health spending to 2.5 per cent of GDP, is long overdue. Increased government spending on healthcare is essential for addressing emerging health threats and achieving universal health coverage. Fiscal reforms in health insurance, expanding medical and nursing colleges, and providing infrastructure status for private sector investment are critical steps towards this goal.
Takeaway
As Modi 3.0 embarks on its third term, the healthcare sector looks forward to transformative changes that will enhance the lives of millions of Indians. By expanding the Ayushman Bharat scheme and accelerating ABDM, pushing for comprehensive skill development, and fostering strategic partnerships, the government can create a robust healthcare system that meets the evolving needs of the population. Increased public health spending, coupled with private sector involvement, is crucial for achieving universal health coverage and ensuring a healthier future for all Indians.
The author is Co-founder & CEO, of MedLern
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