A NITI (National Institution for Transforming India) Aayog report titled ‘Reimagining Healthcare in India through Blended Finance’ revealed that about 65 percent of hospital beds in India cater to almost 50 percent of India’s population.
From the report:
i.In India around 65 percent of hospital beds cater to almost 50 percent of the population concentrated in Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Telangana, West Bengal and Kerala.
- The remaining 21 states and 8 Union Territories (UTs) have access to only 35 percent of hospital beds.
- The number of beds must be increased by at least 30 percent to ensure equitable access to healthcare facilities for people.
ii.The report pointed out that India’s healthcare spending is 3.6 percent of Gross Domestic Product (GDP), including out-of-pocket and public expenditure and the combined total government expenditure of both central and state is 1.29 percent of GDP.
iii.India’s healthcare spending is least among BRICS (Brazil, Russia, India, China, South Africa) countries, where Brazil spends the most (9.2 percent), followed by South Africa (8.1 percent), Russia (5.3 percent) and China (5 percent).
iv.This informative and compelling white paper offers an overview of blended finance and its role in promoting healthcare access in India while providing case studies on how to apply blended finance approaches and examines the current challenges to achieving blended financing at scale.
About Healthcare sector:
i.According to the report, the hospital sector in India accounts for 80 percent of the total healthcare market.
- It was valued at USD 61.79 billion in FY17 and is expected to reach USD 132 billion by 2023, growing at Compound Annual Growth (CAGR) of 16-17 percent.
ii.The primary care industry is currently valued at USD 13 billion. The preventive healthcare market in India was valued at USD 49 billion in 2019 and is expected to reach USD 194 by 2025, expanding at a CAGR of approximately27.30% during 2020-2025.
iii.Health insurance becomes the 2nd largest portfolio with a contribution of about 20 percent of non-life insurance business.
- Pradhan Mantri Jan Arogya Yojana (PM-JAY) could increase the penetration of health insurance in India from 34 – 50 percent.
iv.The market size for telemedicine in India is around USD 830 million as of 2019 is projected to increase to USD 5.5 billion by 2025, growing at a CAGR of 31 percent during 2020-25.
- India’s pharmaceutical sector is the 3rd-largest by volume globally and their cost of production is around 33% lower than that of the United States.
v.The size of the Indian medical devices market is estimated at USD 11 billion, and expected to grow to USD 50 billion by 2025.
Fund for SDG:
i.As per the latest estimates by the United Nations (UN), nearly USD 3.9 trillion is needed to achieve the Sustainable Development Goals (SDGs) by 2030.
ii.In order to address access, affordability, and quality healthcare, USD 256 billion would be needed by 2034 to achieve SDG related to health (SDG 3 – ‘Ensure healthy lives and promote well-being for all at all ages’).
- The funding requirement can be estimated at USD 156 billion with the adoption of new technologies and a focus on prevention and wellness.
About Ministry of Health and Family welfare (MoHFW):
Union Minister – Mansukh Mandaviya (Rajya Sabha Gujarat)
Minister of state – Dr. Bharati Pravin Pawar (Dindori, Maharashtra)