View of LESSONS TO BE LEARNT BY INDIAN HEALTH CARE SECTOR FOR PANDEMIC PREPAREDNESS

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ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037

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Vol. 06, Special Issue 05, (IC-LLCP-2021)July 2021 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL)

74 LESSONS TO BE LEARNT BY INDIAN HEALTH CARE SECTOR FOR PANDEMIC

PREPAREDNESS Dr. Sunil Gosavi

Assistant Professor, Department of Economics, Smt. K. G. Mittal College of Arts and Commerce, Malad (W), Mumbai-400064

Abstract - There are some serious challenges in Indian Health Care Sector like lack of public funding, dominancy of private sector, lack of public health care and heal insurance schemes and shortages of medical amenities in public hospital etc, which are responsible for greater loss of life and economy during the pandemic in India. Therefore, present research paper tries to focus on the challenges of Indian Medical Care Sector and suggests factors (Financial and Non – Financial) could have positively influenced pandemic preparedness and its outcomes that may have prevented.

Keywords: Public Health Care Finance, Challenges of Medical Care Sector, Per capita medical care expenditure and Public Health Insurance etc.

1 INTRODUCTION

The public health expenditure in India (total of centre and state governments) has remained constant at approximately 1.3% of the GDP between 2008 and 2015, and increased marginally to 1.4% in 2016-17. This is less than the world average of 6%. Note that the National Health Policy, 2017 proposes to increase this to 2.5% of GDP by 2025.

Including the private sector, the total health expenditure as a percentage of GDP is estimated at 3.9%. Out of the total expenditure, effectively about one-third (30%) is contributed by the public sector. This contribution is low as compared to other developing and developed countries. Examples include Brazil (46%), China (56%), Indonesia (39%), USA (48%), and UK (83%). Thus, there are some challenges, which are facing by Indian Healthcare Sector, which are negatively influenced pandemic preparedness in India.

1.1 Objectives of the Study

1. To examine public expenditure on Medical Care Sector.

2. To examine Healthcare Expenditure by Providers in India 3. To discuss challenges of Medical Care Sector in India.

4. To suggest major factors (financial and non-financial factors) could have positively influenced pandemic preparedness in India.

1.2 Hypothesis of the Study

1. There is equal role by public and private sectors in Medical Care Sector in India.

2. Government of India provides sufficient funds for Medical Care Sector in India.

2 RESEARCH METHODOLOGY

This research paper purely depends on secondary data. To collect the statistical data

researcher has used various sources like National Health Authority,India, NitiAyog,

Government of India, Ministry of Health and Family Welfare, India,Public Health

Foundation of India, World Health Organization etc.Researcher also referred research

articles from e-journals, reference books, research articles from newspapers and off-line

journals and sources from Internet etc.

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ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037

75 2.1 Healthcare Expenditure by Providers in India

Given the public-private split of health care expenditure, it is quite clear that it is the private expenditure which dominates i.e. the individual consumer who bears the cost of her own healthcare. Let’s look at a further disaggregation of public spending and private spending to understand this.

2.2 Public Health Care Finance by Government in India

Source: NHA, 2017-18

In 2018-19, the Ministry of Health and Family Welfare received an allocation of Rs 54,600

crore(an increase of 2% over 2017-18). The National Health Mission (NHM) received the

highest allocation at Rs 30,130 crore and constitutes 55% of the total Ministry allocation

(see Table 1). Despite a higher allocation, NHM has seen a decline in the allocation vis-à-vis

2017-18.

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ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037

76 2.3 Out of Pocket Health Care Expenditure by Citizens

Source: WHO Global Health Expenditure database, World Bank National Accounts database, OECD National Accounts database.

Above data source reveals that Health Care Expenditure by citizens of poorer countries like India, Pakistan and Bangladesh is Out of Pocket than China.

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Major Challenges of Health Care Sector in India 1. Dominancy of private sector

2. Out of pocket medical expenditure

3. Health is state subject (Federal Structure Constraint) 4. Lack of Social Security (Public Medical Insurance) 5. Lack of Financial Provision by Government

6. Low commitment by Government

7. Lack of Responsibility of Health Care Sector 8. Lack of Policy for Health Care Sector

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Major factors (financial and non-financial factors) could have positively influenced pandemic preparedness and its outcomes that may have prevented 1. Public – Oriented Health Care Facilities

2. High Expenditure / Funding on Health Care Facilities (around 15 %) 3. Less financial burden of Health Care Facilities on citizens

4. Balanced Federal Structure of Health Care Facilities (On Centre and State Govt.) 5. Sufficient Social Security in case of Health Care Facilities (Social Health Care

Insurance and Social and Health Schemes) 6. Flexible Budgetary System for Health Care Sector 7. Accept the Responsibility of Health Care Sector 8. Separate Budget for Health Care Sector

9. Strong Policy for Health Care Sector

10. Best Health Schemes should be Sponsored

11. Quality of the Existing Public Health Care Facilities should be Improved 12. Active Health Workforce should be Improved

13. Affordable Charges for Health Services and Medicines 14. Adequate Funding for Medical Research

15. Active Regulation

3 CONCLUSION

Thus, on the basis of above analysis, researcher concludes that there are some serious

challenges in Indian Health Care Sector like lack of public funding, dominancy of private

sector, lack of public health care and heal insurance schemes and shortages of medical

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ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING Peer Reviewed and Refereed Journal, ISSN NO. 2456-1037

77 amenities in public hospital etc, which are responsible for greater loss of life and economy during the pandemic in India. Therefore, above suggested factors (Financial and Non – Financial) could have positively influenced pandemic preparedness and its outcomes that may have prevented.

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