Moneycontrol | Supreme Court’s push to fix medical rates is unjustified and counterproductive

In the Indian blockbuster series of judicial interventions in policymaking, the latest episode on fixing the rates of medical services charged by hospitals in the country dropped last week. The Supreme Court of India, overcome by the pressing concerns of rising healthcare costs and disparities in costs of treatments availed at public and private hospitals, heard a public interest litigation (PIL) filed by the NGO ‘Veterans Forum for Transparency in Public Life’. In the characteristic style of PILs, the Court directed the Union Government to find a way to fix the price bands for all medical procedures and treatments offered by hospitals in the country and report back in 6 weeks. Or else, the Court threatened to impose the medical rates charged under the Central Government Health Scheme (CGHS) on all hospitals as an interim measure. Hospital stocks responded promptly by shedding more than a few points. Read the full article here.

To meet world average, India must add at least 10 lakh doctors to healthcare force

India has long been short of doctors, nurses and hospital beds. And a recent working paper by Shruti Rajagopalan and Abishek Choutagunta of George Mason University’s Mercatus Center reminds us of that. Compared to the world average of 150 doctors per 100,000 people, India has only 86 doctors registered for practice. The actual number of doctors available for practice, as Basant Potnuru shows, is even lower: we probably have only around 64 doctors per 100,000 people, well below half the world average. Of course, the national average does not tell the whole story: southern states and urban areas are vastly better served than other parts of India. The picture with regard to nurses is relatively better, but there is still a shortage, regional variation and differences in skill levels.

We could take any indicator of healthcare capacity and find that as a country, we are short of it. Public expenditure on healthcare is low — our Union and state governments together spend around 1.5 per cent of GDP on health — and most of India relies on private, mostly out-of-pocket healthcare. Even as we point fingers at the government for spending too little on health, consider that only 20 per cent of the population has medical insurance. Perhaps it is yatha praja, tatha raja, and we have been collectively casual about our health.

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India can fight COVID-19, but only if the private sector is allowed to step in quickly

It is important to say this because thus far, the task of addressing the COVID-19 has been delegated exclusively to the government. Almost all activities, from airlifting Indian nationals, screening arrivals at airports, testing samples, quarantining and treatment are carried out by the government. While this will be effective if the number of cases remains in the current order of magnitude, the government’s facilities alone will not be sufficient if the number of cases rises 100 times or more.The good news is that India has a private healthcare sector and R&D capability that can be used in the fight. The bad news is that we’re not letting them.If we even have a few lakh suspected cases, the government’s resources will fall short of what is required. The right time to think about the capacity required to handle such a massive crisis is now. The single most important thing for India to have a national response — as opposed to a government response — is to enable the private healthcare ecosystem to play an appropriate role to complement the government’s efforts wherever possible.Read more