NEW DELHI, Dec 25: The healthcare industry association, NATHEALTH, urges the government to tackle systemic issues ahead of the upcoming union budget. Key concerns include a significant shortfall of medical specialists, rising costs in cancer care, and inadequate hospital infrastructure to cater to an expanding population.
In its pre-budget recommendations, NATHEALTH advocates for increasing healthcare funding to over 2.5% of GDP and calls on Finance Minister Nirmala Sitharaman to address the mounting burden of both communicable and non-communicable diseases, which are exacerbated by persistent challenges.
“The forthcoming Union Budget presents a unique opportunity to rectify systemic shortages, including the urgent need for more medical specialists, as well as tackling rising cancer care costs and insufficient hospital facilities,” stated NATHEALTH President Abhay Soi.
Soi, who is also the Chairman & Managing Director of Max Healthcare Institute Ltd, emphasized that “enhancing hospital capacity, establishing sustainable reimbursement frameworks, lowering treatment expenses, and advancing medical education will not only resolve current issues but also position India as a leader in global healthcare. These initiatives will contribute to a healthier and more sustainable future for everyone.”
He further remarked that India’s healthcare sector is at a pivotal moment, presenting complex challenges alongside transformative opportunities.
NATHEALTH pointed out the necessity of reducing cancer care prices by eliminating customs duties and lowering GST on oncology radiation equipment, such as LINACs, to improve cancer treatment access in underserved areas.
The association also requested that the government allocate proceeds from healthcare cess and the proposed 35% GST on tobacco and sugary products to bolster public health initiatives. Additionally, it called for a unified 5% GST rate on all healthcare products and services to lower input costs.
NATHEALTH has also advocated for reasonable insurance reimbursement rates, noting that the index rates under schemes like CGHS, PMJAY, and ECHS need to be aligned with the Consumer Price Index (CPI) to assure financial viability, as many have not been adjusted in nearly a decade.
The organization requested the establishment of a fund to support research and development as well as innovation in Med-tech within India while moving toward quality-linked standardized procurement norms for value-based care.
Stressing the importance of expanding medical education, NATHEALTH proposed increasing the number of MBBS and postgraduate medical seats through government investment, supplemented by alternative funding mechanisms such as loans and interest subsidies. (PTI)
