Plans to launch new health protection scheme and making quality medicines available at affordable prices with plans to launch 3,000 Jan Aushadhi stores proposed in the Budget will help more people in getting access to proper healthcare, say industry players.
Reacting to Finance Minister Arun Jaitley's proposals in the Budget 2016-17, Apollo Hospitals Group Chairman Prathap C Reddy said: "Healthcare has finally taken the centre stage in the Budget.
The Health Protection Scheme of Rs 1 lakh to cover unforeseen illness in poor families with an additional Rs 30,000 for senior citizens is a long-awaited and welcome step in deepening access."
Also Read
In addition, the government's plan to add 3,000 pharmacies under the Jan Aushadhi Yojana to provide generic drugs at affordable rates is a commendable move, he added.
Expressing similar views, industry body NATHEALTH Secretary General Anjan Bose said: "Higher allocation & spending should boost universal healthcare...15 per cent increase in government spending on the social sectors with focus on healthcare should go a long way in ensuring universal health coverage."
The healthcare industry is, however, concerned since the government has not addressed the issue of recent increase in import duty on medical equipment and devices, Bose said.
In budget speech, Jaitley today said that catastrophic health events are the single most important cause of unforeseen out-of-pocket expenditure which pushes lakhs of households below the poverty line every year.
In order to help poor and economically weak families, "the government will launch a new health protection scheme which will provide health cover up to Rs 1 lakh per family. For senior citizens of age 60 years and above belonging to this category, an additional top-up package up to Rs 30,000 will be provided," Jaitley said.
Hailing the budget proposals, Deloitte Touche Tohmatsu India LLP Partner on Healthcare Sector Charu Sehgal said: "The announcement of a new universal health Insurance scheme with a coverage of Rs 1 lakh per family and additional Rs 30,000 for the senior citizens towards hospitalisation care is a welcome move."
It was a critical need and will have a positive impact on increasing affordability, therefore spurring demand. Increased demand will in turn incentivise supply of healthcare delivery in rural areas, she added.
"The budget looked at the healthcare as a key area for inclusive growth, however the focus has majorly been on health cover and palliative care," Omron Healthcare India MD Hisao Masuda said.
On an overall level, the government has introduced measures to ease implementation and development through the PPP model, but there is a need to initiate specific partnerships to upgrade healthcare infrastructure beyond urban areas, he added.
"The Finance Minister has done well by recognising the
importance of a healthy population. Significant among the steps to reduce the hardship of disease is the move to cover one third of India's population through healthcare insurance of Rs 1 lakh for hospitalisation with a top up of Rs 30 thousand for those above 60 years of age," Fortis Healthcare Executive Chairman Malvinder Mohan Singh said.
With positive directional steps having been announced "we hope that the FM will continue to look at opportunities during the course of the year to further encourage private sector investments in the expansion and creation of healthcare infrastructure and for medical education," he added.
"This is a Budget with spirit of T-20 & philosophy of a Test Match...It is a very balanced Budget & would give a boost to growth sentiments & revive domestic economy," Jubilant Life Sciences Co-Chairman & Managing Director Hari S Bhartia said.
Saying that while the Budget has many positives such as import duty exemption for dialysis equipment, Advanced Medical Technology Association (AdvaMed) said "it falls short of addressing the needs of patients and vitality of the sector by maintaining import duties on most devices across the board".
The association is also disappointed to see no increase in public healthcare spending, it added.
"Budget 2016 once again neglects the overall development of the healthcare sector. For a sector that has an intense demand supply gap, the Finance Minister has given it a cursory attention," Medwell Ventures Co-founder and Chairman Vishal Bali said.
There is no fundamental change to increase public healthcare spending and give it the necessary boost towards 2 per cent of GDP, he added.
Highlighting the urgent need for starting 'National Dialysis Services Programme, Jaitley said about 2.2 lakh new patients of End Stage Renal Disease get added in India every year resulting in additional demand for 3.4 crore dialysis sessions.
"The announcement of a National Dialysis Services Programme could not have come at a better time, given the burgeoning growth of non-communicable diseases. As always, the health sector in the country will be happy to partner with the government to ensure a healthier India," Reddy said.
"It is interesting that the government has announced a National Dialysis Scheme - provision of dialysis has long been a benchmark for the willingness of governments around the world to provide healthcare to its populations," George Institute for Global Health, India Executive Director Vivekanand Jha said.
VV Parasuram Head Global R&D DR Reddy's Laboratories said the proposed reduction in R&D expenditure from the tax benefits from next year may prompt some pharma companies to shift their R&D activities out of India.
The limit which is currently at 200 per cent will be brought down to 100 per cent by 2020, Finance Minister Arun Jaitley said in his Budget speech today.
"That is reduced to 150 per cent by 2017 and subsequently 100 per cent by 2020. This is one major concern which people will have. There could be a possibility (of shifting R&D to other countries) because the countries like the UK, Netherlands and the US, they give all the benefits," Parasuram told reporters here.
"They give R&D benefit and patent benefits also. So, there could be a possibility that some of the multinationals may move back from India," the officer said.
Meanwhile, hailing the government's decision to set up 3,000 jan Aushadhi outlets across the country, he said it will help people access to medicines at an affordable cost.
Dr Prathap C Reddy, Chairman, Apollo Hospitals Group in a statement said the Health Protection Scheme of Rs 1 lakh to cover unforeseen illness in poor families with an additional Rs 30,000 for senior citizens is a long-awaited and welcome step in deepening access.
"In addition, the government's plan to add 3,000 pharmacies under the Jan Aushadhi Yojana to provide generic drugs at affordable rates is a commendable move. Moreover, the announcement of a National Dialysis Services Programme could not have come at a better time, given the burgeoning growth of non-communicable diseases," Reddy said.
According to Jaitley, the programme will be made available in all district hospitals on a public-private partnership model and on behalf of all the healthcare private sector providers.
Welcoming the move, Reddy said the health sector in the country will be happy to partner with the government to ensure a healthier India.
