Budget wishlist: Hospitals want rise in allocation, better PMJAY rates

According to the Nathealth-Healthcare Federation of India, the sector is pushing for an increase in healthcare spending to 2.5 per cent of the GDP

(This report has been updated)

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  The healthcare sector has rolled out a robust wish-list for the upcoming Budget.

 

Leading the agenda are increased health spending, vertical expansion of hospitals, and viable reimbursement rates under government-led insurance schemes such as Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) and Central Government Health Scheme (CGHS).

 

According to the Nathealth-Healthcare Federation of India, the sector is pushing for an increase in healthcare spending to 2.5 per cent of GDP, with focus on reducing cancer care costs and TB eradication.

 

The body states that the number of cancer cases in India is on a sharp rise, with projections showing an increase from 1.3 million cases in 2020 to 1.5 million cases in 2025.

 

 

“India’s current population of around 1.35 billion requires around 7,500 cancer saving high-end medical equipment to ensure adequate coverage for treatment. However, India currently has only around 750 to 800 such equipment,” it added.

 

Healthcare associations claim that removal of Customs duties and reduction of goods and services tax (GST) to 5 per cent on oncology radiation equipment, such as linear accelerators (LINACs), can expand cancer treatment capacity in underserved regions. 

 

The sector is also expecting a revision in reimbursement rates for government health insurance schemes with rates being linked to the Consumer Price Index (CPI) to ensure financial viability, given that many rates have remained unchanged for nearly a decade.

 

This comes as hospitals have previously complained of delays in reimbursement related to the scheme. 

 

Highlighting the issues, Giridhar Gyani, director general, Association of Healthcare Providers of India (AHPI), said that there needs to be timely and adequate reimbursements under Ayushman Bharat. This should include implementation of interest for delayed payments and a comprehensive review of rates linked to inflation.

 

Industry bodies have also pushed for encouraging vertical expansion of hospitals by permitting hospital heights up to 60 metres nationwide.

 

The current limit is 45 metres or lower in the building code, allowing build-up of critical healthcare infrastructure for high-rise vertical expansion. 

 

“This can be supported by funding fire safety upgrades to ensure compliance in high-rise healthcare facilities,” Nathealth said.

 

Among other demands is strengthening health infrastructure by adding 2.5-3 million hospital beds nationwide through viability gap funding (VGF) and long-term, low-interest capital investments. This would result in participation by mid-sized and smaller healthcare providers. 

 

“To stimulate private sector participation, we recommend exploring options such as tax breaks, streamlined regulatory processes, and targeted funding for infrastructure development in Tier II and III cities,” Gyani said.  Abhay Soi, president Nathealth and chairman and managing director, Max Healthcare added that addressing escalating cancer care costs, and inadequate hospital infrastructure will ensure a more sustainable future for all.  

Enhanced measures

 

> Nathealth-Healthcare Federation of India said the health care sector is pushing for an increase in spending to 2.5 per cent of GDP

> Association of Healthcare Providers of India called for timely reimbursements under Ayushman Bharat

> Industry bodies have also pushed for vertical expansion of hospitals by permitting heights up to 60 metres 

> Max Healthcare said this can be supported by funding fire safety upgrades to ensure compliance in high-rise facilities