Indian health sector needs $203b by 2012: FICCI
Tuesday, 24 July 2007
NEW DELHI, July 23 (PTI): India needs to spend a whopping USD 203 billion on health services, with a significant private partnership, if the mission of achieving 'Health for all' is to be attained by 2012, industry body, Federation of Indian Chambers of Commerce and Industry (FICCI), has said.
With a view to improve access to healthcare services in India, which would require huge funds in the next five years, the chamber has proposed five models of public-private partnership (PPP).
The models proposed are PPP options for primary and secondary healthcare, a network of diagnostic centres, capital expenditure sharing, equity sharing and premises on lease model.
"These partnership models would have to run in tandem with attractive fiscal incentives and meaningful regulation if the government mission of 'Health for All' is to be achieved and the bed to thousand ratio has to be raised to five beds by 2012 from the current level of 1.3.
In a detailed presentation to the government, the chamber has also quantified a shortage of 4,53,785 doctors, 1,290,174 nurses and a huge number of paramedics by 2012.
To attract private sector investment in healthcare sector, FICCI, has recommended tax holiday for 10 years for building new facilities and upgrading old ones, extension of exemption to companies creating training in the medical area, industrial status to the sector and soft loans from public sector banks and reduction in custom duty on identified medical equipment.
FICCI has also called for income tax relief of 15 per cent subject to review after a five-year period and enforcement of quality in government hospitals, laboratories and blood banks.
Under PPP options for primary and secondary healthcare , FICCI has proposed handing over of management of sub-centres, primary health centres, community health centres and district hospitals to private players under lease agreements by the state governments.
Another model suggested by the chamber is setting up of a network of diagnostic centres via PPP in states on a fee-for-service basis and profit-sharing.
The capex-sharing model can include government to build infrastructure, private player to cater for services and equipment and demarcate hospital into charitable and paid services areas, the chamber statement said.
While the equity sharing model could include cost shared equitably between government and private party for land, infrastructure and services and private parties to provide equipment. The other feature of the model is 'free' treatment to 10 per cent Below Poverty Line(BPL) and government-referred patients (excluding consumables and high-end procedures).
With a view to improve access to healthcare services in India, which would require huge funds in the next five years, the chamber has proposed five models of public-private partnership (PPP).
The models proposed are PPP options for primary and secondary healthcare, a network of diagnostic centres, capital expenditure sharing, equity sharing and premises on lease model.
"These partnership models would have to run in tandem with attractive fiscal incentives and meaningful regulation if the government mission of 'Health for All' is to be achieved and the bed to thousand ratio has to be raised to five beds by 2012 from the current level of 1.3.
In a detailed presentation to the government, the chamber has also quantified a shortage of 4,53,785 doctors, 1,290,174 nurses and a huge number of paramedics by 2012.
To attract private sector investment in healthcare sector, FICCI, has recommended tax holiday for 10 years for building new facilities and upgrading old ones, extension of exemption to companies creating training in the medical area, industrial status to the sector and soft loans from public sector banks and reduction in custom duty on identified medical equipment.
FICCI has also called for income tax relief of 15 per cent subject to review after a five-year period and enforcement of quality in government hospitals, laboratories and blood banks.
Under PPP options for primary and secondary healthcare , FICCI has proposed handing over of management of sub-centres, primary health centres, community health centres and district hospitals to private players under lease agreements by the state governments.
Another model suggested by the chamber is setting up of a network of diagnostic centres via PPP in states on a fee-for-service basis and profit-sharing.
The capex-sharing model can include government to build infrastructure, private player to cater for services and equipment and demarcate hospital into charitable and paid services areas, the chamber statement said.
While the equity sharing model could include cost shared equitably between government and private party for land, infrastructure and services and private parties to provide equipment. The other feature of the model is 'free' treatment to 10 per cent Below Poverty Line(BPL) and government-referred patients (excluding consumables and high-end procedures).