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Issues relating to development and management of Health

The "Right to Life" is considered essential by the Constitution, and the government is required to protect everyone's "right to health." The federal system of India, as well as the responsibilities and funding splits between the Centre and the states, have affected the health sector to a large extent. The states are in charge of planning and delivering health care to their citizens. Healthcare has become more focused on innovation and technology over the past two years and 80% of healthcare systems are aiming to increase their investment in digital healthcare tools in the coming five years.

 

FACTS

The healthcare industry comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. India’s healthcare delivery system is categorised into two major components - public and private.

The government (public healthcare system), comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of Primary Healthcare Centres (PHCs) in rural areas. The private sector provides a majority of secondary, tertiary, and quaternary care institutions with major concentration in metros, tier-I and tier-II cities.

Market Statistics:

  1. The Indian healthcare sector is expected to record a three-fold rise, growing at a CAGR (Compound Annual Growth Rate) of 22% between 2016–22 to reach USD 372 billion in 2022 from USD 110 billion in 2016.
  2. In the Economic Survey of 2022, India’s public expenditure on healthcare stood at 2.1% of GDP in 2021-22 against 1.8% in 2020-21 and 1.3% in 2019-20.
  3. In FY21, gross direct premium income underwritten by health insurance companies grew 13.3% YoY to Rs. 58,572.46 crore (USD 7.9 billion).
  4. The Indian medical tourism market was valued at USD 2.89 billion in 2020 and is expected to reach USD 13.42 billion by 2026.
  5. Telemedicine is also expected to reach USD 5.5 billion by 2025.

According to some estimations, the Indian healthcare sector will be worth $774 billion by 2030. Hospitals, medical tourism, health insurance, medical equipment, telemedicine, outsourcing, clinical trials, and medical gadgets are all part of India's healthcare industry.

 

Overview about INDIA

  • Health Infrastructure: India has 1.3 beds per 1,000 people, 0.5 pharmacists per 1,000 people, and 0.8 physicians per 1,000 people, all of which are less than half of the global average.
  • Funding: According to the Economic Survey 2020-21, India ranks 179th out of 189 nations in terms of prioritising health care in the government budget. The government's expenditure on health is modest, accounting for only 1.4% of GDP. In Ghana, for example, it is 3.5%.
  • Disease load: Although India has 17% of the world's population, it bears a disproportionately large part of the global disease burden (20%).
  • Quality of healthcare: According to the Economic Survey, India ranks 145th out of 180 nations in terms of healthcare quality and access (Global Burden of Disease Study 2016).
  • Doctors: By 2030, India will need an additional 2 million doctors to reach an ideal doctor-to-population ratio of 1:1000.

 

Problems pertaining to the Healthcare sector

Insufficient Medical personnel:

    • There is a massive shortage of medical staff, infrastructure and last-mile connectivity in rural areas. Ex. Doctor: Population 1:1800 and 78% of doctors cater to urban India (population of 30%).
    • Massive shortages in the supply of services (human resources, hospitals and diagnostic centres in the private/public sector) are made worse by grossly inequitable availability between and within States.
    • For example, even a well-placed State such as Tamil Nadu has an over 30% shortage of medical and non-medical professionals in government facilities.
    • 61% of PHCs have just one doctor, while nearly 7% are functioning without any
    • 33% of PHCs do not have a lab technician, and 20% don’t have a pharmacist.
    • In states like Odisha, more than 3,000 government posts for doctors or about 50% of all government medical doctor posts are lying vacant.

Health budget:

    • India’s expenditure on the health sector has risen meagerly from 1.2 per cent of the GDP in 2013-14 to 4 per cent in 2017-18. The National Health Policy 2017 had aimed for this to be 2.5% of GDP.
    • The health budget has neither increased in real terms nor is there any policy to strengthen the public/private sector in deficit areas. While the Ayushmaan Bharat provides portability, one must not forget that it will take time for hospitals to be established in deficit areas.
    • This in turn could cause patients to gravitate toward the southern States that have a comparatively better health infrastructure than the rest of India.

Infrastructure constraints:

    • There are doubts about the capacity of India’s infrastructure to take on the additional load of patients during pandemics like Covid-19 as seen recently.
    • There is a growing medical tourism (foreign tourists/patients) as a policy being promoted by the government, and also domestic patients, both insured and uninsured.

Crumbling public health infrastructure:

    • Given the country’s crumbling public healthcare infrastructure, most patients are forced to go to private clinics and hospitals.
    • There is a shortage of PHCs (22%) and sub-health centres (20%)while only 7% of sub-health centres and 12% of primary health centres meet Indian Public Health Standards (IPHS) norms.
    • In the northern States, there are hardly any sub-centres and primary health centres are practically non-existent. First-mile connectivity to a primary healthcare centre is broken. For eg, in Uttar Pradesh, there is one PHC for every 28 villages.

The strong role of Private players:

    • Approximately 70 per cent of the healthcare services in India are provided by private players. If private healthcare crumbles due to economic constraints or other factors, India’s entire healthcare system can crumble.
    • Over 70 per cent of the total healthcare expenditure is accounted for by the private sector.
    • However, Private hospitals don’t have adequate presence in Tier-2 and Tier-3 cities and there is a trend towards super specialisation in Tier-1 cities.
    • lack of transparency and unethical practices in the private sector.
    • The lack of a level playing field between the public and private hospitals has been a major concern as public hospitals would continue receiving budgetary support. This would dissuade the private players from actively participating in the Governmental scheme.

High Out of pocket expenditure:

    • According to the latest National Health Accounts (NHA) estimates released in March 2021, patients bear a big chunk of health expenses, as high as 61 per cent of the total health expenditure, by themselves.
    • Even the poor are forced to opt for private healthcare, and, hence, pay from their own pockets. As a result, an estimated 63 million people fall into poverty due to health expenditures, annually.
    • Inequities in the health sector exist due to many factors like geography, socio-economic status and income groups among others. Compared with countries like Sri Lanka, Thailand and China, which started at almost similar levels, India lags behind its peers on healthcare outcomes.

Poor insurance penetration:

    • India has one of the lowest per capita healthcare expenditures in the world. Government contribution to insurance stands at roughly 32 per cent, as opposed to 83.5 per cent in the UK.
    • The high out-of-pocket expenses in India stem from the fact that 76 per cent of Indians do not have health insurance.

Fake doctors:

    • Rural medical practitioners (RMPs), who provide 80% of outpatient care, have no formal qualifications for it.
    • People fall prey to quacks, often leading to grave disabilities and loss of life.

Numerous Schemes and their limitations:

    • The Government has launched many policies and health programmes but success has been partial at best.
    • The National Health Policy(NHP) 2002 proposed to increase Government spending on health by two to three per cent of the gross domestic product (GDP) by 2010 which has not happened yet.
    • Now, the National Health Policy 2017, has proposed to take it to 2.5 per cent of the GDP by 2025.
    • The overall situation with the National Health Mission, India’s flagship programme in primary health care, continues to be dismal.
    • The NHM’s share in the health budget fell from 73% in 2006 to 50% in 2019 in the absence of uniform and substantial increases in health spending by States.

Healthcare without a holistic approach:

    • There are a lot of determinants for better health like improved drinking water supply and sanitation; better nutritional outcomes, health and education for women and girls; improved air quality and safer roads which are outside the purview of the Health Ministry.


Issues in particular with Urban healthcare

  • Rural-urban disparityUntil recentlyUnion government mostly focused on rural healthcare. Ex: expenditure on urban areas was 850 crore in 2019-20, compared to nearly ₹30,000 crore for rural.
  • Lack of government primary and preventive health infrastructure: Against a norm-based target of 9,072 urban primary health centres (UPHCs), only 5,190 are operational.
  • Most states do not have urban sub-centres (SCs), people’s first point of access to healthcare services. There are only 3,000 urban SCs compared to over 150,000 in rural areas.
  • Urban areas also suffer from ‘over-hospitalization’ of basic care, ideally done in clinics.
  • Lack of devolution of functions by state government and inadequate role clarity among various health-related agencies
  • The poor financial condition of ULBs and low priority accorded to health.

 

Issues in particular with Rural healthcare

  • Only 11% of sub-centres, 13% of Primary Health Centres (PHCs) and 16% of Community Health Centres (CHCs) in rural India meet the Indian Public Health Standards (IPHS).
  • Only one allopathic doctor is available for every 10,000 people and one state-run hospital is available for 90,000 people.
  • Innocent and illiterate patients or their relatives are exploited, and they are allowed to know their rights.
  • Most of the centres are run by unskilled or semi-skilled paramedics and doctor in the rural setup is rarely available.
  • Patients when in emergency sent to the tertiary care hospital where they get more confused and get easily cheated by a group of health workers and middlemen.
  • Non-availability of basic drugs is a persistent problem in India’s rural healthcare.
  • In many rural hospitals, the number of nurses is much less than required.

 

Central Government Schemes for Healthcare Sector in India

Health is a state subject, the Central Government supplements the efforts of the State Governments in the delivery of health services through various schemes for primary, secondary, and tertiary care.

  • By 2025, the Government of India is planning to increase the expenditure on Health care to 2.5% of the GDP.
  • In the Union Budget 2020-21, the Ministry of Health and Family Welfare was allocated a budget of more than Rs 65,000 crores.
  • In Budget 2020-21, the Government of India has approved the extension of the National Health Mission with an allocated budget of around Rs 34,000 crores.
  • Under the National Health Mission (NHM), financial support is provided in the following areas: ASHAs workers, ambulances, mobile medical units (MMUs), drugs and equipment, support for Reproductive, Maternal, New-born, Child & Adolescent Health (RMNCH+A).
  • The National Nutrition Mission has set an objective of reducing undernutrition, and problems of stunting by 2%
  • The Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY) – This is the largest healthcare program funded by the Government.
  • In the Union Budget 2020-21, PMJAY was allocated a budget of more than Rs 6400 crores.
  • As of Nov 2019, more than 63 lakh people have received free treatment under Ayushman Bharat – PMJAY.
  • In the Union Budget 2020-21, the Government of India allocated Rs 3,000 crores for Pradhan Mantri Swasthya Suraksha Yojana (PMSSY).

 

The potential of the Indian Health Sector?

  • India's competitive advantage lies in its large pool of well-trained medical professionals. India is also cost-competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe.
  • India has all the essential ingredients for the exponential growth in this sector, including a large population, a robust pharma and medical supply chain, 750 million plus smartphone users, 3rd largest start-up pool globally with easy access to VC (Venture Capital Fund) funding and innovative tech entrepreneurs looking to solve global healthcare problems.
  • India will have about 50 clusters for faster clinical testing of medical devices to boost product development and innovation.
  • The sector will be driven by life expectancy, shift in disease burden, changes in preferences, growing middle class, increase in health insurance, medical support, infrastructure development and policy support and incentives.
  • As of 2021, the Indian healthcare sector is one of India’s largest employers as it employs a total of 4.7 million people. The sector has generated 2.7 million additional jobs in India between 2017-22 -- over 500,000 new jobs per year

 

Opportunities in Health Care Sector

  • By 2030, the Indian healthcare sector is estimated to reach US$ 744 billion according to a report by Aspire Circle.
  • Data Analytics: The National Digital Health Mission (NDHM) will bring with it the digital Health ID, which will save patient data. It would aid in effective policymaking, and private firms would gain an advantage in the market introduction of innovative technology.
  • Investing privately: It would be simple for private players to spend strategically with the arrival of information technology and big data. As we all know, the Indian healthcare sector is in urgent need of workers, and there is room for thousands of people.
  • Start-ups: A climate conducive to start-ups and entrepreneurship can be formed in this field with the support of the government and private stakeholders.
  • Medical Tourism: India is already one of the most popular medical tourism destinations in the world, and this industry can be effectively tapped in the next years.

 

Measures Required in the Health Sector

  • Improving infrastructure: There is an urgent need to improve the infrastructure of public hospitals, which are overburdened as a result of India's large population.
  • Focus on private hospitals: The government should encourage private hospitals because they make a significant contribution. Because the difficulties are severe and cannot be tackled just by the government, the private sector must also engage.
  • Increased efficiency: To improve the sector's capabilities and efficiency, more medical personnel must be hired.
  • Utilization of technology: In order to connect the dots in the health system, technology must be used. Medical gadgets in hospitals and clinics, mobile health apps, wearables, and sensors are only a few examples of technology that should be included in this area.
  • Awareness: People should be made aware of the importance of early detection and prevention. It would also assist them in reducing their out-of-pocket expenses.

 

There is an urgent need to improve the infrastructure of public hospitals, which are overburdened as a result of India's large population. The government should encourage private hospitals because they make a significant contribution. Because the difficulties are severe and cannot be tackled just by the government, the private sector must also engage. To improve the sector's capabilities and efficiency, more medical personnel must be inducted. In order to connect the dots in the health system, technology must be used. Medical gadgets in hospitals and clinics, mobile health apps, wearables, and sensors are only a few examples of technology that should be included in this area.

 

WHO Reforms

Recently, while addressing the heads of countries at the second global COVID-19 summit, the Indian PM once again brought up the issue of reforming the World Health Organisation. First Global COVID virtual Summit hosted by President Biden in 2021.

 

World Health Organisation (WHO)

  • It is a specialised agency of the United Nations with a mandate to act as a coordinating authority on international health issues.
  • It was founded in 1948 and has headquarters at Geneva, Switzerland. 
  • It has 194 Member States, 150 country offices, and six regional offices.
  • It works in collaboration with its member states usually through the Ministries of Health.

 

India’s Role in Fighting Pandemic

  • India adopted a people-centric strategy to combat the pandemic and has made the highest-ever allocation for its health budget this year.
  • India was running the largest vaccination campaign in the world and had vaccinated close to ninety per cent of its adult population and more than fifty million children.
  • India is working to extend its genomic surveillance consortium. 
  • India has used traditional medicine extensively and has laid the foundation for a WHO Centre for Traditional Medicine in India to make this knowledge available to the world.
  • India would continue to play an active role by sharing its low-cost indigenous COVID mitigation technologies, vaccines and therapeutics with other countries.

Need for WHO Reforms

  • Lack of funding: Any attempt to build a stronger WHO must first begin with increased mandatory funding by member states.
    • For several years, the mandatory contribution has accounted for less than a fourth of the total budget, thus reducing the level of predictability in WHO’s responses; the bulk of the funding is through voluntary contribution.
  • Providing more powers: It is time to provide the agency with more powers to demand that member states comply with the norms and to alert WHO in case of disease outbreaks that could cause global harm.
  • Lack of information sharing: The long delay and the reluctance of China to readily and quickly share vital information regarding the novel coronavirus, including the viral outbreak in Wuhan.
  • Member states do not face penalties for non-compliance: This has to change for any meaningful protection from future disease outbreaks.
  • Vaccine approval: Demand for a review of the health agency’s processes on vaccine approvals is a long-time pending issue.  
    • The demand for a review of the vaccine approval process is based on the assumption that the emergency use listing (EUL) of COVAXIN was intentionally delayed by the health agency, which has no basis.

India submits 9-point plan for WHO reforms

  • International Health Regulations (IHR) Emergency Committee: the current decision-making mechanism of the WHO largely relies on the recommendation of the International Health Regulations (IHR) Emergency Committee.
    • It has called for strengthening the Public Health Emergency of International Concern (PHEIC) declaration process to enable the WHO Director-General to declare a global public health emergency without the need for overarching consensus among the IHR Emergency Committee but just a broad agreement.
  • Extra-budgetary contributions: The proposal also notes that the Programmatic Activities of the WHO are currently funded by earmarked voluntary extra-budgetary contributions.
    • It calls for the unearmarking of these voluntary contributions reasoning that this would provide greater flexibility across financing enabling the WHO to use these sums where they are most required.
  • It also calls for expanding the WHO's regular budget to allow the body to cater to its core activities thereby relieving the added burden on developing nations.
  • Solidarity Response Fund or the Foundation and Strategic Preparedness Response Plan (SPRP): The government has also acknowledged the lack of transparency within the funding mechanism of the WHO, advocating for strong and robust financial accountability frameworks that will enable maintaining integrity in financial flows.
    • SPRP is monitored at a micro level while calling for a quarterly review of the WHO's activities by member states.
  • It has recommended increased support from the medical body to improve technical and core competencies in each country so as to facilitate broad uniformity in country responses.
    • Noting that member states have a self-reporting obligation under the IHR 2005, it has cautioned that since the public health infrastructure in many developing countries remains underdeveloped, a complete implementation of the IHR may be unrealistic.
  • Independent Oversight and Advisory Committee (IOAC): The proposal has criticised the policy-making framework of the WHO that currently sees the World Health Assembly and Executive Board play only a peripheral role.
    • Citing the rising risk of outbreaks like the one we are currently witnessing, it advocates for the constitution of a Standing Committee of the Executive Board to supervise member states' implementation of the WHO's recommendations.
    • It also recommends expanding the role of the Independent Oversight and Advisory Committee (IOAC) and greater representation of developing nations with high disease burdens.
  • The proposal also champions fair and equitable access to vaccines and diagnostic tools acknowledging the growing wave of vaccine nationalism taking place. It warns that with several larger countries striking bilateral deals with vaccine manufacturers, developing countries may be greatly disadvantaged in the race to rid the world of the COVID-19 virus.
  • Pan-world surveillance: It has also called for the enhancement of capacities of countries in preparation for and response to infectious diseases of pandemic potential, noting that there was a need to set up “pan-world surveillance” by leveraging the latest technology.
  • Hosted Partnerships: The proposal recommends improving pandemic prevention, preparedness and response through the development of Hosted Partnerships that enable developing nations to leverage the technical and academic expertise of other member states. 

Suggestions

  • Under the legally binding international health regulations, member states are expected to have in place core capacities to identify, report and respond to public health emergencies.
  • The timeline for granting an EUL for a vaccine depends 99% on manufacturers, the speed, and the completeness of the data.
  • Build global solidarity for worldwide health security: WHO will work with countries to improve their own preparedness for pandemics and health emergencies. But for this to be effective, we will ensure that countries work together.
  • Advanced health for all: WHO will work across all three levels of the Organisation and with partners worldwide to help countries strengthen systems so that they can respond to COVID-19 and deliver all the essential health services required to keep people of all ages healthy close to home and without falling into poverty.
  • Tackling health inequities: The COVID-19 pandemic has drawn attention to the deep disparities that persist between and within countries, some of which are being exacerbated and risk widening even further. 
  • Provide global leadership on science and dataWHO will monitor and evaluate the latest scientific developments around COVID-19 and beyond, identifying opportunities to harness those advances to improve global health.
  • Revitalise efforts to tackle communicable diseasesWHO and partners have worked resolutely to end the scourge of polio, HIV, tuberculosis and malaria, and to avert epidemics of diseases like measles and yellow fever.
  • Build back betterManifesto for a Healthy Recovery from COVID-19, with its goals of addressing climate change and health, reducing air pollution and improving air quality, can play a major role in making this happen.

 

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