'Ind needs innovative modes of funding for healthcare sector'

To bridge the huge infrastructure gap in the healthcare sector, India needs much more participation from the private sector and innovative modes of funding, a report today said.
"The healthcare sector needs huge funding and the Public Private Partnership (PPP) is the best solution as the private sector can support the government in building capacities to improve service delivery," the NATHEALTH - PwC report said.
Private sector is involved in building the healthcare infrastructure in the country with active participation from private equity players and increase in FDI, it said.
Innovative modes of funding such as pension funds, investment through PPP and longterm debt should be used, it said, adding that financing through the pension funds will provide access to a large pool of money.

With a 22 per cent shortage of primary health centres (PHCs) and 32 per cent shortage of community health centres (CHCs), it is estimated that 50 per cent of beneficiaries travel more than 100 km to access quality care, it said.
India has only 1.1 beds per 1,000 population, compared to the global average of 2.7. Further, most physicians are located in urban areas, the report noted.

Ensuring healthcare delivery through traditional methods will require additional investment of USD 245 billion by 2034. This can be reduced by USD 90 billion by focusing on preventive care, leveraging technology to deliver care and shifting care from hospitals to homes, the report said.

"If we get this right, 340 million more people will have access to quality healthcare, 4.3 million additional employment opportunities will be generated, and Rs 141 billion will be saved for the country by preventing daily loss due to heart disease, stroke and diabetes in the next 5 years," the report said.
"Access to capital has been one of the biggest hurdle to the growth of the Indian healthcare sector. Today, the government spends only about 1.5 per cent of GDP on healthcare, which is among the lowest globally," PwC India Partner and Leader, Healthcare, Rana Mehta said.