Healthcare gets a shot in the arm

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After being ignored in the past annual budgets, the healthcare industry in the country has been finally given a prominent place in the Union Budget for FY 08-09, presented by finance minister P Chidambaram on Friday. The industry has welcomed with open arms FM’s allocation of Rs 16,534 crore for the healthcare sector for FY 08-09, which is an increase of 15% over 2007-08. Chidambaram’s announcement of a health cover of Rs 30,000 for every worker in the below-the-poverty-line category under Rashtriya Swasthya Bima Yojana is also a welcome move.

Prathap C Reddy, chairman, Apollo Group of Hospitals and chairman, CII-national committee on health, told FE, “It has been a great job by the FM. Increasing 15% in healthcare spend will have immense potential in the Indian healthcare industry. The move will help to get access for healthcare needs in rural areas. It will reduce the gap between availability and need in the industry.”

The healthcare industry also welcomes the schemes such as National Programme for the elderly, to be started in 2008-09 with a plan outlay of Rs 400 crore. So far, demand for more human resources in healthcare has been neglected. However, this budget has considered the issue of manpower shortage as well.

The allotment for skills development will help the Indian healthcare industry register an increase in the number of healthcare workers from the present four million, he hoped.

The growth of health human resources will help a young India take care of an ageing world, he added. Vishal Bali, CEO, Wockhardt Hospitals, also shares Reddy’s views. He said, “Definitely, the quality of healthcare delivery will improve. The creation of new infrastructure will have specific focus on Tier II and III cities. Shivinder Mohan Singh, CEO and MD, Fortis Healthcare, said, “The announcements have come at an opportune time for the healthcare industry in general and Fortis Healthcare in particular. It is heartening to know that the government now has recognised private healthcare providers as significant players.

People across the country need good healthcare facilities and the move to provide tax holiday would help bring advanced treatment and technology in smaller cities as well.

The announcement would help