Priority sector status to healthcare, including hospitals and diagnostic centres, along with tax benefits, increasing access to health insurance and decreasing customs duty on the import of essential medical equipment were some of the pre-budget expectations voiced by industry leaders as this would encourage expansion of healthcare services, especially in private sector which presently contributes to almost 80 per cent of the bed
capacity.

Steps taken by the government in the last few years to increase the universal coverage of healthcare through Jan Aushadhi, Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) and National Dialysis Service Program have been positive. These schemes could be further strengthened, in the upcoming budget.

“Given the large population and its varied geographical distribution among rural and urban areas in India, access to quality healthcare is a key issue that needs to be addressed, to ensure that people in remote villages can also benefit from these facilities,” said Dr. Vishal Beri, chief executive officer, Hinduja Healthcare Limited

India is one of the countries that spend the least on healthcare, with a public spending of only about 1 per cent of GDP, as compared to 3 per cent in China and 8 per cent in the UK. There is an urgent need to increase this to at least 2.5 per cent of GDP.

He further added that decreasing Customs Duty on the import of essential medical equipment required for setting up hospitals would make projects financially viable which, in turn, would bring down healthcare costs for consumers. Furthermore, incentives for local equipment manufacturers could help push the “Make in India” programme.

Real estate is one of the highest cost components, especially in metro cities, which acts as an impediment to the viability of many healthcare projects. It is also suggested that incentives to reduce this cost can encourage many more healthcare projects which would have a dual impact of reducing cost, as well as increasing access to these services.

Industry experts also voiced that preventive health check-up exemption should be increased from Rs. 5,000 to at least Rs. 10,000 for individuals, and from Rs. 5,000 to at least Rs. 15,000 for senior citizens, keeping in mind the rising investigation costs.

The Government should take steps to improve the regulation of both, medical education as well as medical practice. This would encourage talent to stay within the country, thus addressing the acute shortage of medical and paramedical personnel.

Echoing similar views, Rajesh Mundra,chief executive officer, Truworth Wellness said, “The budget should increase the limit of preventive health check exemption as the current limit of Rs. 5,000- is too little for a family. Looking at the burden of the increasing chronic disease incidence, the government should provide additional limits to the people suffering from chronic diseases and include the additional expenses on Chronic Disease Management. This would also help the government to reduce the burden on the health care system due to chronic diseases complications.
The Government should provide additional deductions to the company’s spending money on the health and wellness of their employees. This would entail the goal of Healthy India.  Preventive Health Check and Wellness plans sold online by wellness companies should also be exempted from Service Tax/GST. Currently only diagnostic labs and hospitals are exempt from ST.

Government should also increase the health insurance penetration through incentives so that the goal of universal health coverage can be achieved. The current health insurance coverage is only 15 per cent which is extremely low.

On improvements in diagnostics, Dr. Shravan Subramanyam, managing director for Roche Diagnostics India & Neighboring Markets said, “The government should consider a centrally driven mandate for Nucleic Acid Amplification Technology (NAT), which could reduce transfusion transmitted infections during blood screening, and for molecular tests for cervical cancer screening.”

Budgetary allocation to strengthen the diagnostics infrastructure would certainly be valuable, as well as initiatives that ease the requirements for bringing these essential life-saving diagnostics technologies to patients.

“Customs duty on blood glucose monitoring strips need to be exempted. Customs duty on blood glucose monitoring strips is 18.94 per cent for Lancet and control solutions it is 25 per cent. Customs duty for strips should be made duty free to encourage self-testing of blood glucose at affordable cost and to improve quality of diabetic patient’s life,” said Dr. Rajeev Boudhankar, CEO, Bhatia Hospital.

Under Prime Minister’s Jan Aushadhi Yojana, 1 lakh Stores should be opened during FY 17-18. ‘National Dialysis Services Programme’ started under National Health Mission through PPP mode to be extended to all 2 and 3 tier cities and taluka headquarters. Indian Council of Medical Research (ICMR) has 32 institutes that are suffering due to lack of funds for upgrading the infrastructure, maintain equipment, buy consumables and to conduct field studies. At least Rs. 10,000 crores should be
allocated for the same. Many projects are not on track because of this lack of funds. Government should plan to set up an Rs. 10 billion pharma technology upgradation fund. The specific focus on pharma will help drive the focus on innovation especially in the area where Indian companies have historically had a significant global advantage,” Dr  Boudhankar concluded.