Reforming health care sector in India

Any government should focus on the areas like Education, Health Sector and Employment as a prima facie agenda. There is need for massive improvement in health care sector in India. Especially increasing the quality hospitals in Rural area, improving human resources ,reducing the unwanted medical procedure from crony hospital to the patient,reducing the price of the medical procedure and increasing the hospital bed for the population.

More participation of involvement in private parties is required so that we can create a competition to drive down the sector. I fell it is very necessary to start the dialogue on universal health care for all Indians even though there might be some loop holes in the health care policies in an initial stage.

For example, We could take a Tamilnadu province as a sample size and we could construct the affordable health care. There are approximately 72 Million people in the province. Lets say we charge INR 450 for Individual and INR 1000 for the family. Lets say we collect approximately 350 INR per capita in Tamilnadu.

1.e., 350 INR X 72147030 = 25251460500 INR

Total 250 Crores will be collected in one month. In one year it will be 3000 Crores. Even if we could capture 50% of the population it will be 1500 Crores per year. Kids under 18 age will cover under their parents Insurance premium.

The next question will be how to bring the majority of the population in the mandatory health sector net. I think this process will be very challenging. Netherlands is one of the best health care provider in the world and we have to the take the cue and inspiration from them. Risk equalization pool should be created to absorb the risk for the insurance company.

To bring the majority of the population in the safety net, the health care card should be linked with AADHAR card. And the employer should mandatory deduct the Health care cost before remitting the salary along with TDS. By doing so both employer and employee should be given tax advantage.

Next challenge is protecting the crony hospital to claim for the unwanted expensive bill from the insurance company. Inorder to protect , pls find below ideas

  1. Putting a max. cap for each medical procedure . (For eg., Max. 1 lac for heart surgery)
  2. Private insurance company vetting each bill based on medical history/ symptoms with group of doctors for the batches of bill payment.
  3. Creating competition among the private insurance company and private hospitals.
  4. Splitting hospital Tier wise based on the quality/ infrastructure and similarly applying max. cap for the cost on medical procedures should be segregated Tier wise.
  5. Creating Judicial system for the health care.
  6. Finally most challenging part is converting all private sector hospitals into non profit organisation.

 

 

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