India’s Healthcare Sector

  • April 29, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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India’s Healthcare Sector

Subject :government schemes

Why in News?

National Health Account Estimates 2019-20 was released recently. The health account estimates describe the country’s total expenditure on healthcare – whether by the government, private sector, NGOs, or individuals – and the flow of these funds. The government spent 1.35% of the country’s Gross Domestic Product on healthcare during the year, bouncing back from a slight drop seen in 2018-19 as per the report.

About NHA

The National Health Account (NHA) estimates for India 2019-20 is the seventh consecutive NHA estimates report prepared by National Health Systems Resource Centre, designated as the National Health Accounts (NHA) Technical Secretariat in 2014 by the Health Ministry.

The NHA estimates are prepared by using an accounting framework based on the internationally accepted standard of System of Health Accounts, 2011, developed by the World Health Organization (WHO).

Bullets

  1. Share of Out-of-Pocket Expenditure (OOPE) in Total Health Expenditure declines from 62.6% in 2014-15 to 47.1% in 2019-20.
  2. Government Health Expenditure’s (GHE) share in country’s total GDP increases from 1.13% (2014-15) to 1.35% (2019-20).
  3. Share of Government Health Expenditure in Total Health Expenditure increases from 29% (2014-15) to 41.4% (2019-20).
  4. Per capita Government spending on healthcare doubles.
  5. In per capita terms, GHE has doubled from Rs. 1,108 to Rs. 2,014 between 2014-15 to 2019-20. The government spending on health between 2018-19 and 2019-20 increased by 12%, more than double the growth rate between 2017-18 and 2018-19 which was at 5%.

Figure 1: Government Health Expenditure and Out-of-pocket expenditure as % of Total Health Expenditure (%) (Source: PIB)

  1. The share of primary healthcare in Current Government Health Expenditure (CGHE) has increased from 51.3% in 2014-15 to 55.9% in 2019-20. The increased focus on primary healthcare reinforces the government’s decisions to prioritize primary healthcare in the country.

Figure 2: Share of Primary Health Care in Current Government Health Expenditure (%) Source: PIB

  1. The share of Social Security Expenditure (SSE) on health, which includes government-funded health insurance, medical reimbursement to government employees, and social health insurance programs, in THE, has increased from 5.7% in 2014-15 to 9.3% in 2019-20. This increase in social security has a direct impact on reducing out-of-pocket payments.
  2. State governments urged to move ahead in healthcare spending as percentage of their total budget.

The report highlights the increased public spending in primary healthcare, which is in line with National Health policy 2017 where it states that two-thirds of public health spending must be in Primary Health systems. This is also a result of great developments/initiatives taken at grassroot level such as opening of over 1.6 lakh Ayushman Bharat Health and Wellness Centres (AB-HWCs) which are providing plethora of health services to the people

Ayushman Bharat – Health and Wellness Centres

  1. In order to expand access to Comprehensive Primary Health Care (CPHC), under Ayushman Bharat – Health and Wellness Centres (HWCs), Sub Health Centres (SHCs) and Primary Health Centres (PHCs) are being strengthened as Health and Wellness Centres (HWCs).
  2. The HWCs are to provide preventive, promotive, rehabilitative and curative care for an expanded range of services encompassing reproductive and child health services, communicable diseases, non-communicable diseases, palliative care and elderly care, oral health, ENT care, and basic emergency care.
  3. The services in HWCs will be provided through a Mid-level Health Care Provider (MLHP)/Community Health Officer (CHO) placed at a HWC-SHC and Medical Officer at PHC (Rural/Urban).
  4. The MLHP/CHO will undergo a Certificate in Community Health through IGNOU or public university.

National Health policy 2017

  1. It intends on gradually increasing public health expenditure to 5% of the GDP.
  2. It proposes free drugs, free diagnostics and free emergency and essential healthcare services in public hospitals.
  3. The policy advocates allocating two-thirds (of resources to primary care.
  4. It proposes two beds per 1,000 of the population to enable access within the first 60 minutes after a traumatic injury.
  5. To reduce morbidity and preventable mortality of non-communicable diseases (NCDs) by advocating pre-screening.
  6. It highlights AYUSH as a tool for effective prevention and therapy that is safe and cost-effective.
  7. It proposes introducing Yogain more schools and offices to promote good health.
  8. It also proposed reforming medical education.
  9. The policy also lists quantitative targets regarding life expectancy, mortality and reduction of disease prevalence in line with the objectives of the policy.
Government Schemes India’s Healthcare Sector