Healthcare Industry reacts to Budget 2021-22

Here’s what healthcare captions have to say about Union Budget 2021.

Dr. Vivek Desai, Founder & Managing Director, Hosmac

With a 137% increase in health budget outlay, government has sent a strong signal to strengthen the Public Health system which faced the brunt of the COVID Pandemic. Setting up of laboratories at key locations, improving emergency and critical care at more than 600 district will go a long way to build confidence amongst common masses. This should probably incentivise private sector also to invest in small towns.

Dr. Harish Pillai, CEO, Aster India, Aster DM Healthcare

The increased investment towards Health Infrastructure and focus on a holistic approach to health is seen as a testimony of the commitment to building stronger health systems. The launch of the Atmanirbhar Swasthya Bharat Yojana with an outlay of Rs. 64,180 crores will boost the healthcare ecosystem. The investment will aid in developing capacities of healthcare systems, develop institutions for detection and cure of new and emerging diseases. This in addition to the National Health Mission, will support rural and urban health care centres.

The all-inclusive approach through the launch of Mission Poshan 2.0 to improve nutritional outcomes and continued focus on cleanliness through Swachh Bharat Mission & potable drinking water through Urban Jal Jeevan Mission will subsequently bolster public health. The commitment to Rs. 35, 000 crores for the COVID-19 vaccination program and the promise to further provide funds if required, will accelerate the vaccination across the population. Strengthening of the National Centre for Disease Control (NCDC) & setting up of a National Institution for One Health, Bio-Safety Level III laboratories and regional National Institutes for Virology will provide a thrust for the improvement of the healthcare sector in India, which is commendable. Overall, it is a landmark budget to help fill-up the growing needs of improved healthcare in the country.

Mr. Kapil Banga, Assistant Vice President, ICRA Limited

The budgetary allocation for healthcare sector for FY2022 will translate into 10% drop in the allocation, if compared to the RE for FY2021. Nonetheless, the allocation translates to growth of 11%, if it is compared to the BE for FY2021.

The Government has launched PM Atma Nirbhar Swasth Bharat Yojana (PMANSBY) and has also allocated Rs. 35,000 crore towards cost of vaccine. However, as the total allocation towards the healthcare sector has come down vis-a-vis RE for FY2021, this could translate into cutting of expenditure on other avenues within the sector.

The continuing modest allocation towards the healthcare sector would make it challenging for the Government to meet its target of public sector healthcare investment of 2.5% of the GDP by 2025.

Mr. Sanjiv Navangul, MD & CEO, Bharat Serums and Vaccines Ltd, (BSV)

The union budget has given a substantial increase to bolster the healthcare sector in India. INR 35000 cr for COVID-19 vaccine and the commitment to the pneumococcal vaccine to be rolled out nationwide to avert child deaths is a massive boost. A well spent allocation of INR 64,000 cr under the new Atmanirbhar Swasthya Bharat Yojana scheme will show significant results thus labelling #healthyindia as an encouraging effort. And, the infrastructural push will certainly create many more skilled jobs revitalizing the overall ecosystem.

Dr. Gautam Sen, Chairman & Founder Healthspring

This Government ever since it came to power has been giving importance to basic health issues like Public Health in “Swatccha Bharat” addressing better sanitation for all, Ayushman Bharat by Financing Tertiary Care Expenses for those who are below the poverty line, the ‘Pradhan Mantri Jana Aushadhi Yojana” where Generic Medicines are made extremely affordable and culminating into “Health Policy 2017” where it rightly gives importance to Wellness and Health and invites all section of Healthcare Providers to participate in Nation’s Health Outcomes.

The present Budget brings back the focus on Preventive Health again which should not be misinterpreted as a signal to build more and more sophisticated hospitals sophisticated equipment with diminishing returns in health outcomes of a nation instead, focus on keeping an individual healthy and spending money on it. This can only happen if we have a Robust Primary Care System in the midst of a community and not a downgraded and neglected PHC as is present today.

Performance Linked Incentive is another ingenuine method of financing which should be applied to the health sector as well. Any healthcare provider who provides better health outcomes in the community it serves which can be measured- must be incentivised and rewarded for better performance with the Accountability principle for all the stakeholders- the receiver, the provider and the institution which is financing the system. With these positive inputs in the present budget, we are in the path of Atma Nirbhar Bharat.

Cdr Navneet Bali, Regional Director, Northern India, Narayana Health

The Union Budget this year has clearly announced the paradigm shift in the way we look at the health and wellness in our country. From 137% increase in healthcare budget allocation to Rs. 64180 crore spending in next 6 years towards the 'PM Atmanirbhar Swasth Bharat Yojana, this is a movement towards making our country more aware about wellness and ensuring that our citizens are more productive. When a country has more productive and healthy citizens it manifests into everything that we do and this budget typically has shown a direction towards how we are headed in the next five to 10 years. Setting up of health and wellness centres in rural and urban India, having integrated public health labs, having a nationwide Pneumococcal vaccine which will prevent deaths of over 50000 children to the announcement of Rs. 35000 crore towards vaccines, I think these are very important and critical steps towards that direction. Along with that thinking about clean air missions in 42 urban areas with a million plus population, setting up of critical care hospital blocks 602 districts in India; I think these all are very important steps which will strengthen our healthcare. I think this budget points out that along with spending on treating illness it is also better for the country to work towards wellness and make the citizens healthy and productive. In that way I think this is an extraordinary and great Budget.

Dr Rahul Pandit, Director-Critical Care, Fortis Hospitals, Mumbai

Healthcare has received a much-needed stimulus in this year’s Union Budget. Health and family welfare has emerged to be a crucial pillar and a priority sector for the nation. It is very encouraging to see a health outlay of Rs 2,23,846 crore, that is a 137% increase over last year; this is a progressive first step towards building a strong healthcare set-up in our country. A much-needed focus has been laid towards preventive healthcare, curative healthcare and well-being. In view of the COVID-19 pandemic, and to deftly deal with public health emergencies, the government has shared a commitment towards uplifting critical care units within the country.

Another commendable effort by the government is the infusion of Rs 35,000 crore for COVID-19 vaccines. This will truly bolster our battle against COVID-19 and aid in rapidly building immunity among citizens, enabling wider access to vaccination, especially amongst the vulnerable groups. Apart from this, the PM Aatmanirbhar Swastha Bharat Yojana in in congruence with the National Health Mission Program has been proposed with an outlay of ₹64,180 crore for building capacity of primary, secondary & tertiary level healthcare facilities. Strengthening of healthcare across all three segments will help offer advanced care in even the most remote parts of the country. This move is expected to better the quality of life, improve life expectancy, avoid preventable deaths and offer immunizations that could bring down disease burden on the country.

While designing this national blueprint for growth, the budget focuses on reducing mortality among infants and mothers. Mission Poshan 2.0 in congruence with other nutrition-related programs will make nutrition management especially in mothers-to-be and children a priority. Importantly, proposal of 15 health emergency centers, strengthening of National Centre for Disease Control (NCDC) and setting up of two mobile hospitals will help increase healthcare penetration and strengthen healthcare offering in the country. Overall, the government has taken a need-assessed approach health and these promising developments will definitely help us move us towards bringing back normalcy, and in building a healthier nation.

Charu Sehgal, Partner and Leader, Lifesciences and Healthcare, Deloitte

It is very encouraging to see the focus on healthcare in the budget and a 137 percent increase in outlay in healthcare and wellness over last year. There appears to be an integrated attention to epidemiology, diagnostics and treatment at all levels including district and blocks.

Satyam Shivam Sundaram, Partner, Government and Public Sector, EY India

Allocation of Rs 2,23,846 crores (137% increase compared to FY 2020-21) towards healthcare is not only in line with the immediate requirement to deal with pandemics like COIVD-19 but also consistent with the National Health Policy 2017, which aspires to increase expenditure on healthcare to 2.5% of GDP. Further, the new Centrally Sponsored Scheme ‘PM Aatmanirbhar Swasth Bharat Yojana’ would provide an additional impetus and complement the NHM budgets to accelerate the development of primary, secondary, and tertiary health care infrastructure. It is also heartening to see that there is a special focus with substantially increased allocation on social determinants of healthcare including launch of Mission Poshan 2.0 to improve nutritional outcomes, Jal Jeevan Mission ensuring universal water supply, Urban Swachh Bharat Mission focussing on solid and waste water treatment, source segregation of garbage, reduction in single-use plastic, reduction in air pollution, among others. This increased allocation would not only improve the health outcomes but also go a long way in the achievement of 5 out of 17 Sustainable Development Goals (Zero Hunger, Good Health & Wellbeing, Clean Water & Sanitation, Sustainable cities & Communities & Climate Action).

Mr. Amol Naikawadi, Joint Managing Director, Indus Health Plus

The 2021 Union Budget looks optimistic for the healthcare sector. With Aatma Nirbhar Health Yojana, the sector will get a boost from a public health infrastructure standpoint. The initiative will enhance the quality of healthcare and strengthen the national center for diseases control in the country. In addition, due to this, most of the health needs of the low-income group in both urban and rural areas will be taken care of. Besides, Mission Poshan 2.0 and Jal Jeevan Mission will also help in improving public health and wellness. In my opinion, the budget should have also given some preference to private healthcare segment as well that has been a strong pillar of support during the pandemic. Apart from that, the focus should have been more on the prevention of NCDs, which are mostly asymptotic at the early stages but eventually treatment becomes difficult and expensive.

The further fortification by setting up additional 17,000 rural and 11,000 urban health and wellness centers along with integrated public health labs is also a good decision. However, emphasis on the preventive healthcare segment would have lowered the NCDs burden and the overall health expenses of the country.

Mr Vikram Thaploo, CEO, Apollo TeleHealth

The Finance Minister, Nirmala Sitharaman announced an allocation of INR 64,180 crore over the next 6 years for the healthcare sector in the 2021 Union Budget. The budget allocated is in addition to the National Health Mission which is already in effect. One of the key initiatives proposed in this year’s budget is the addition of 17,000 rural and 11,000 urban health and wellness centres which is supportive move for better patient care and will also pave way for more public-private partnerships. Also, the government has proposed to set up integrated public health labs in each district with 3,382 block public health units across 11 states. Another welcoming move is the outlay of INR 1.41 crore for the Swach Bharat 2.0 mission which will help improve sanitisation and transform the lives of millions. Considering the government’s effort to curb the pandemic of COVID-19, it has also planned to set aside INR 35,000 Crore for Covid-19 Vaccine in FY22. Though, it must be admitted that the government has re-shifted its focus on healthcare in this budget, but considering the rapid integration of digital technology into healthcare, no major developments around digital healthcare or telemedicine was announced

Dr Anand Bansal, Medical Director at Action Group of Hospitals

Amid COVID 19 pandemic the sudden and unprecedented changes the world had to go through, this budget was keenly awaited especially for the announcements in regards to the health sector. Healthcare is certainly a top priority of this budget as 137% hike in health & wellness budget has been announced. Our health sector needs more expenditure and infrastructure development. With the announcement of PM Atmanirbhar Health Yojana worth around Rs. 64000 crore we are certainly going to witness more inclusive growth in our healthcare in upcoming years, which is full of challenges in the current scenario. Also the amount of Rs. 35000 crore announced for COVID 19 vaccine will strengthen this fight against pandemic. As per health concerns this budget is satisfactory and full of vision, considering the challenges our healthcare is facing, things will surely need time to reflect results on a larger scale.

Public HealthVivek desaiFebruary 2, 2021Ayushman Bharat