Budget 2022: Increased budgetary allocation, thrust on Digital Health, and capacity building needed for the healthcare sector

New Delhi: India’s healthcare sector needs a shot in the arm. The last two years have been extremely challenging for healthcare - exposing its vulnerabilities and at the same time showcasing how rollout of successful healthcare programs can prove to be a saviour. A case in point is achieving the historic feat of administering 1.5 billion Covid vaccines in January 2022 by leveraging technology to organise and streamline access to Covid vaccines.

As Covid moves from a pandemic phase to endemic, there is hope for an increased thrust and spending on the healthcare sector to at least 2.5% of the GDP this year from 1.8% to build and upgrade medical infrastructure, improve healthcare funding and train healthcare workers.

Building public-private healthcare models and investment in Digital Health, including telemedicine, will be key in implementing this as well making healthcare accessible to all, specially providing care to regions with short supply of doctors. 

To ease the burden on hospitals, the Union Budget should incentivise digital health models which enable out-of-hospital care, telemedicine, remote monitoring and home care. This can be done by encouraging healthcare startups in these areas via tax breaks and investment. 

A healthcare innovation fund should also be set up to provide capital to companies building digital healthcare infrastructure. There are already numerous startups in the digital health space building health records, providing doctor teleconsultations and utilising artificial intelligence and machine learning to provide detailed reports to patients regarding medical conditions and treatment. Increased allocation in the Union Budget for promotion of telemedicine, home-based healthcare and national digital health mission implementation will definitely help in building a strong healthcare ecosystem in the country.

However at the same time, this needs to be accompanied with a thrust on training and upgradation of medical infrastructure. 

The shortage of skilled healthcare workers was evident during the Covid pandemic. There is a need for capacity building, training and skilling for manpower to provide quality care to patients. This is not just at medical facilities. Increasingly, especially elders and the vulnerable parts of the population, will be seeking home healthcare services, driving demand for skilled healthcare workers. There should be a focus in the upcoming Union Budget on incorporating elder care in our primary health systems. 

There is also a definite need for more public private partnership (models) to increase healthcare capacity and care. This would include local manufacturing of PPEs, healthcare equipment and devices. Initiatives that encourage local technology-driven innovations in the field of medical devices are critical.

India has ambitions to become a $5 trillion economy by 2025 and steps towards building a robust healthcare infrastructure and consequently a healthier and more productive population will definitely help in getting us there.   

By Atul Gandhi, Founder- Seva at Home