Gautam Khanna on Modi 3.0: Boosting Public Health, Private Partnerships, and Digital Healthcare

By Arunima Rajan

Mr.Gautam Khanna, CEO, PD Hinduja Hospital & MRC

In an exclusive interview with Arunima Rajan, Gautam Khanna, CEO of P.D. Hinduja Hospital and Medical Research Centre, discusses Modi 3.0's plan to boost public health spending and the impact of digital technologies and A.I. on healthcare in India.


How do you see Modi's 3.0 commitment to increasing public health spending to 2.5 per cent of GDP? What impact do you foresee this having on the healthcare industry?

The commitment to increase public health spending to 2.5% of GDP under Modi 3.0 is set to significantly impact India's healthcare industry, presenting an opportunity to transform healthcare infrastructure and improve access for millions. This increased funding will likely boost infrastructure development in Tier 2 and 3 cities, especially rural areas, strengthen primary care through expanded PHCs and public-private partnerships, and support medical education expansion to address professional shortages. We can anticipate accelerated adoption of digital healthcare solutions, growth in medical tourism, more comprehensive health insurance coverage, including modern treatments, and increased support for medical research and innovation.

While this transition may require pricing structure adjustments for healthcare providers, it also needs regulatory relief, particularly in GST input credit. The success of this increased spending will hinge on effective implementation, including streamlining regulations, enhancing professional skills, and incentivizing specialists to serve in underserved areas. If executed well, this commitment has the potential to create a more robust, inclusive, and future-ready healthcare system in India, benefiting both the public and private sectors while improving overall healthcare outcomes for the population.

How should the private sector complement government initiatives like Ayushman Bharat?

The private sector plays a vital role in complementing government initiatives like Ayushman Bharat, enhancing India's healthcare system's overall effectiveness and reach. Private healthcare providers contribute their expertise, infrastructure, and innovative solutions to support and expand the coverage of such programs. Ayushman Bharat's impact on private hospitals presents a complex picture. While the scheme has expanded healthcare accessibility by providing insurance coverage to millions of beneficiaries, particularly those from lower socioeconomic backgrounds, it has also ensured increased patient volume. Still, the reimbursement rates are below costs in many tier 1 hospitals.

The program's long-term sustainability for private hospitals depends on factors such as adjustments to reimbursement rates, streamlining administrative processes, and consistent government funding. Despite these challenges, public-private partnerships can help increase the number of available beds and specialized services, especially in underserved areas. Through advanced technology and management practices, private sector involvement can bring efficiency and quality improvements. Additionally, the private sector can assist in developing digital health solutions, telemedicine platforms, and health information systems to improve access and data management. Private insurance companies can work alongside the government to extend coverage and develop tailored health insurance products.

How can digital technologies and A.I. be leveraged to increase access to healthcare in the third term of this government? What are the challenges of integrating this technology?

Digital technologies and A.I. have significant potential to increase healthcare access during the third term of this government. These technologies can enable telemedicine services, allowing patients in remote areas to consult with specialists remotely. AI-powered diagnostic tools can assist healthcare providers in making faster, more accurate diagnoses, particularly in areas with limited access to specialists. Electronic health records and health information systems can improve continuity of care and enable better health monitoring at a population level. A.I. can also be used for predictive analytics, helping to identify potential health risks and allocate resources more efficiently.

However, integrating these technologies faces several challenges. First, there's the issue of digital infrastructure and connectivity, especially in rural areas. Ensuring reliable internet access and necessary hardware is crucial for widespread adoption. Second, there's a need for digital literacy among both healthcare providers and patients. Training programs will be essential to ensure effective use of these technologies. Data privacy and security are also major concerns, requiring robust regulations and cybersecurity measures to protect sensitive health information. Interoperability between different systems and standardization of data formats pose technical challenges. There's also the risk of exacerbating healthcare disparities if these technologies are not equitably distributed. Lastly, integrating A.I. into clinical decision-making requires careful validation and regulatory oversight to ensure patient safety and trust in the system.

Despite these challenges, if implemented thoughtfully, digital technologies and A.I. can significantly enhance healthcare access and quality across India, supporting the government's efforts to achieve universal health coverage.

How can PPP models optimize healthcare delivery in tier I and II cities?

Public-private partnership (PPP) models hold immense potential to enhance healthcare delivery across tier I and tier II cities and rural areas. By harnessing the combined strengths of the public and private sectors, these models can effectively bridge infrastructure gaps, elevate service quality, and significantly increase healthcare accessibility.

In tier I cities, PPP models can focus on specialization and advanced care. Private sector expertise can be utilized to establish centres of excellence for complex treatments, reducing the need for patients to travel abroad. These partnerships can also help upgrade public hospitals with state-of-the-art equipment and management practices.

For tier II cities, PPP models can be crucial in expanding healthcare infrastructure. Private sector involvement can accelerate the establishment of multi-speciality hospitals, diagnostic centres, and specialty clinics, helping to bridge the healthcare divide between metro cities and smaller urban centres.

PPP models can also facilitate the implementation of telemedicine services, connecting tier II cities with specialists in tier I cities. This can significantly improve access to specialized care without patient travel. Furthermore, these partnerships can enhance the efficiency of healthcare delivery through improved management practices, better resource allocation, and the introduction of technology-driven solutions. Private sector expertise in supply chain management and I.T. systems can streamline operations in public healthcare facilities. PPP models can also address the shortage of healthcare professionals in tier II cities by creating attractive work environments and career growth opportunities. This can help retain talent and improve the overall quality of healthcare services.

However, successful implementation of PPP models requires careful planning and execution. Clear governance structures, transparent pricing mechanisms, and well-defined quality standards are essential. Regular monitoring and evaluation of these partnerships are crucial to ensure they meet their intended objectives and provide value for public resources. By effectively leveraging PPP models, tier I and tier II cities can significantly enhance their healthcare infrastructure, improve service quality, and move closer to the goal of providing accessible, affordable, and high-quality healthcare to all citizens.