Written by Mr. Vikram Thaploo, CEO-Telehealth, Apollo Hospitals Enterprises Limited
Healthcare accessibility and affordability are major concerns in India. To address these issues, the Central and State Governments have implemented various insurance schemes, including the Pradhan Mantri Jan Arogya Yojana, which provides free healthcare access to economically vulnerable Indians. Digitization efforts have also enhanced healthcare delivery and efficiency, with an 85% increase in teleconsultations and increased accessibility through digital platforms supported by the National Digital Health mission. Despite these commendable efforts, more needs to be done, given India’s massive population.
Accessibility is another major issue, with urban residents having access to 66% of hospital beds though they account for only 28% of the population, while the remaining 72% of rural residents have access to just one-third of the beds. Additionally, 67% of doctors practice in urban areas.
To achieve long-term and impactful change, the government and private sector must work together. Public-private partnerships have been successful in other sectors such as tourism, education, infrastructure energy etc. By leveraging the advantages of both sectors and forming a strategic partnership, the urban-rural healthcare divide can be bridged.
Public Private Partnerships have the Potential to Transform Healthcare in India
Over the past decade, the public-private partnership (PPP) model has been successful in India, thanks to various policy initiatives. The establishment of a public-private partnership appraisal committee has simplified the appraisal and approval of projects, enhanced transparency, and introduced competitive bidding processes.
In 2021, India received a committed investment of US$7.7 billion across 25 projects, the highest in the South Asia region. While most countries in the region experienced a sharp decline in private investment, India witnessed a 49% increase in private investment commitments.
However, it is crucial that PPP projects are tailored to the ground situation and aim for practical outcomes as resources are being pledged for such initiatives. Here are the ways PPP projects can help address healthcare accessibility and affordability in India:
Monetary Assistance
One of the ways PPP projects can address healthcare accessibility and affordability in India is by providing financial assistance. Many private sector companies have a Corporate Social Responsibility (CSR) budget, which can be effectively utilized to create an investment engine that can aid in the acquisition of new equipment and the refurbishment of existing infrastructure.
It is crucial to view CSR as an opportunity to build sustainable initiatives through long-term strategic planning and impact-driven goals, instead of focusing on short-term solutions. By utilizing CSR budgets effectively, private sector companies can contribute to the improvement of healthcare accessibility and affordability in India.
Utilizing Autonomous Domain Expertise
Companies and private sector organizations, such as those in the healthcare industry, now have greater access to in-house and independent domain experts with a track record of successfully building and operating organizations. These experts can effectively leverage their skills, technology, and insights to aid in the rehabilitation of healthcare infrastructure, which is crucial in improving access and affordability. Businesses with international experience can bring their knowledge to emerging economies like India to assist in the construction and expansion of existing infrastructure.
Technological Accessibility
Due to the competitive nature of the business ecosystem, private sector players have had to rapidly adopt digital and technological advancements across operational domains, giving them an advantage over public sector enterprises that continue to operate with traditional methods. A public-private partnership (PPP) can assist in disseminating these advancements to the wider public at an affordable rate, which can enhance the efficiency of the healthcare system. One example of this is the increased use of telemedicine.
Enhancing Affordability
If managed efficiently, PPPs can operate on the high-volume, low-margin models, optimizing efforts to create higher impact. In other words, public-private partnerships that work on a mass scale can help make services affordable while maintaining quality standards. This would offer quality healthcare at a lower cost, improving access to a wider range of the population.
Expandability
While private entities offer valuable resources and expertise, they may struggle with scaling reform projects at the national level. Public-private partnerships can help to overcome this limitation by providing the necessary support to expand programs and ensure their benefits are accessible across different regions.
Final Say
India’s digital interventions have put it on the path towards universal health coverage, but there is still room for improvement in extending healthcare services to all citizens. Innovative public-private partnerships can bridge the gap for underserved communities and improve the overall healthcare system in India. The government’s ability to provide scale and subsidies, combined with the private sector’s funding and expertise, can ensure the successful implementation of healthcare initiatives on a large scale and in a timely manner. Therefore, well-planned PPPs are the way forward to address current and future health challenges in India.
