Defining a new pathway for enhanced healthcare

The challenges faced in the past by the Indian healthcare system pale in comparison with those brought on by the pandemic. Globally it can be seen that government expenditures on health need to be more than 70% to 75% of total health expenditures to deliver truly high-quality healthcare services. A review of the November 2021 State of State Finances report of the Parliamentary Research Service indicates that this is because the government continues to prioritise investment into sectors such as agriculture, roads, ports, and financial services, where the private sector is perfectly capable of making these investments or India is already a global leader instead of focusing on sectors such as healthcare where, driven by market failures, there is a real need. For example, while the Ayushman Bharat scheme which aims to improve access to affordable and quality healthcare, at under 0.10% of GDP, is currently far too underfunded to have any direct impact even on its target population, its flagship National Digital Health Mission has the potential to reform the entire architecture of the Indian health system both in the public and private sectors. In the meanwhile, the government, instead of launching underfunded tax-financed purchasing schemes, will need to offer government-designed and operated contributory health care plans through the national and state health authorities in order to compensate for both its own unwillingness to fund health care adequately, and the lack of interest amongst commercial insurance companies to expand access.