Healthcare Policy: The Impact of Policy Changes on Healthcare Access and Affordability

It is claimed that the government must develop new models if the objective of UHC is to be met.

The Indian government has set a 2030 deadline for achieving Universal Health Coverage (UHC). This agenda is crucial to accomplishing the other Sustainable Development Goals. The healthcare industry anticipates that the government will make every effort to develop fresh models to increase accessibility, availability, affordability, and quality in tiers 3 and 4, particularly rural regions. It is thought that the government will need to develop new models if the goal UHC is to be met. Many pillars of healthcare are being incorporated into new models, including funding, capacity development, infrastructure, technology, and insurance, among others.

The Impact of Technology in Healthcare:

Technology has emerged as a major changer for the industry, providing one-of-a-kind answers to India's many difficulties. During the epidemic, the nation shown its fortitude. The world's biggest immunization and efficient pandemic management were accomplished with significant technological assistance. It is also anticipated to play a crucial role in reaching UHC. For this, a policy push would be necessary believes Moris Media, the leading digital marketing agency in India, which has been working with a lot of start-ups in the healthcare segment.

Experts are already admitting that technology will be having a huge impact, as far as future developments in the healthcare segment is concerned. There is a growing need to go to the next level by embracing new technology (digital health with all of its modern instruments including Artificial Intelligence, data analytics, electronic record maintenance, IoT, and more). New technologies have the potential to address the full care continuum. These technologies play specialized functions from admission until discharge, as well as in the post-discharge period. With the Indian Government already starting its National Digital Health Mission; the industry is hopeful that this is just the start needed for an enhanced technological momentum. There is also a need for outside-the-box thinking for creative health care models that keep costs low and within reach of all income groups while introducing technology and trained labour to achieve clinical excellence. This is critical to ensuring high-quality healthcare for everybody.

The Government needs to extend further support:

In 2022-23, the financial allocation for health was about 2%. Experts from the healthcare industry are also having high expectations that the government will layout a further 0.5% of GDP for the healthcare industry in the coming five years. They also stress on the need to stimulate private sector investment in this sector through special tax concessions and other benefits.

Leading professionals in the healthcare segment also state that capital and operational expenditure for hospitals have significantly increased. This has a knock-on impact on treatment costs. For the sake of sustainability and quality, hospitals would shift the load on the patients. To address this issue, it is anticipated that the government needs to establish an enabling framework for credit facilities. Long-term (15-20 year) loan facilities would provide a boost to the industry by reducing the load. The primary problems are interest rates, tenure, and collateral. Access to lower-cost funding without collateral would go a long way toward establishing a new healthcare ecosystem in the nation.

The healthcare industry also requires structural and tax reforms. Tax breaks and incentives are necessary for both current and new healthcare initiatives. A 10-year tax break for new or greenfield developments, similar to that granted to Special Economic Zones and Tech Parks, would go a long way toward transforming the industry. A new healthcare economy will be in place very soon if the Union Budget focuses on creating similar zones for the hospital sector and extending all benefits, including tax incentives, as per industry experts.

The Way Forward:

To address its issues, the healthcare industry needs a variety of solutions, including more public and private expenditure. New models should allow the establishment of a complete and integrated healthcare ecosystem in the nation to assist patients in having access to high-quality and cost-effective treatment.

India has already become a key destination for medical tourism. Millions of international patients are drawn in by highly skilled physicians and world-class facilities. It is a significant foreign currency earner. It is anticipated that the Union Budget 2023-24 will give further impetus and new incentives to this sector, which had a setback during the COVID-19 crisis but has since recovered.

Better healthcare results, according to the BCG Report, contribute to increased productivity. This is expected to result in an additional benefit of USD 200-250 billion to India's GDP.' Other benefits include a significant increase in Patient Trust, Diagnosis Rate, and Deep Penetration of Health Insurance Instruments.

Cohesive collaborations and partnerships between the government, public sector health institutions, and the private sector would go a long way toward building a strong healthcare ecosystem in the country. Collaborations and partnerships would significantly reduce the load on the government. The government's programs also need to become broader and more widespread to have the maximum impact that is desired.