by Dr Vaibhav Kapoor
The health sector has not been able to reap the benefits of the GST transition like other sectors of the economy. In contrast, embedded taxes have increased in the post-GST regime. The Union budget should facilitate GST rules to allow the healthcare sector, including new age healthcare players to get benefits.
The budget should also increase the government’s focus on public-private partnership (PPP) to ensure better access and affordability of healthcare. There are various PPP models for health care, such as contracting, contracting, voucher systems, mobile health vans, insurance, subsidies, leasing or renting, and privatization. All of this should be further leveraged to improve the health system, including expanding the diagnostic infrastructure or NCD management in Tier II and III cities. Strategies for PPP models must be sustainable.
digital health
He COVID-19 pandemic accelerated the adoption of digital technology throughout the health system. The open platform for the National Digital Health Ecosystem consisting of digital records of health providers and health facilities announced in the last Budget was a positive step in prioritizing the role of digitization in the broader health care ecosystem. There is still a need for further budget allocation to improve the patient experience, attract smart investment in relevant digital health technologies, increase healthcare infrastructure, and build an ecosystem through collaboration.
Digital health can potentially give rise to the largest company in the world, which could be a consumer health technology company. Four of the world’s five largest companies – Google, Apple, Facebook (Meta) and Amazon – are consumer companies looking to take advantage of US healthcare, which accounts for $4 trillion of the US economy and comprises 20 % of GDP. In the near future, a consumer health specialty that reinvents what care could look like could emerge as the world’s largest company, rather than one of today’s big tech or healthcare companies. In the Indian context, a local commander may adopt such a template.
Health tech startups are changing the Indian healthcare industry with their innovative solutions. At Pristyn Care, which is built on cutting-edge technology platforms, we’re tackling long-standing challenges like making healthcare affordable, accessible, and quality-driven. Despite all of this, the responsibility for making quality healthcare accessible to all remains with government. This is why an industry-friendly budget to boost the new-age healthcare players can go a long way toward achieving the goal of universal health coverage.
way to go
In the last Budget, CAPEX took center stage with an increase of 35% over previous estimates. That spirit must continue for the health sector to grow. The fiscal deficit for FY24 is estimated at around 6% of GDP in FY24, which translates to a fiscal consolidation of 40 bp of the current fiscal. Containing the fiscal deficit will help keep the economy going.
The budget could reduce the GST rate, which will help new businesses. There is also a need for faster regulatory policies for startups along the lines of America’s Innovative Device Program through the US Food and Drug Administration. Government incentives for healthcare technology startups can make a big difference in India’s quest to build a highly efficient healthcare system where no one is left behind.
Dr Vaibhav Kapoor, Co-Founder, Pristyn care
(DISCLAIMER: The views expressed are solely those of the author and are not necessarily endorsed by ETHealthworld. ETHealthworld.com shall not be liable for any damage caused to any person or organization directly or indirectly.)
