On the brink of collapse, private hospitals now in need of care
The private healthcare sector is India’s fourth largest employer, with 72 per cent of the total hospitals under it, and having 60 per cent of the total hospital beds in the country. The private sector caters to a majority of the requirements in secondary, tertiary, and quaternary care, whereas public healthcare is limited to primary care in rural areas and secondary and tertiary care in a few cities. This has helped the government, as secondary and tertiary care is cost-heavy and has a long gestation period.
Despite its role, the government has not understood what the private sector needs in terms of vision, investment or incentives. There is a significant communication gap between the government and private hospitals. While the private sector is in favour of the schemes initiated by the government, it is concerned about the future of the hospital industry as well. The sector has received a major blow in three aspects - price capping that is detrimental to investments in R&D and expansion of facilities, low GDP expenditure by the government in this industry, and unfair exemptions from taxes/ GST.
Many hospitals are on the verge of closure due to a lack of support from the government. The government is party to the profits made by hospitals, but the private sector has been abandoned in its time of need.
During the ongoing pandemic, the private sector has stepped in in a huge way, with medical and paramedical workers risking their lives for the people of the nation. The Finance Minister has not provided any support to the industry in coping with the pandemic, but the government has not held back in asking for help in fighting Covid.
There needs to be a proper dialogue between the government and the private hospital industry on how to address the latter’s struggles through this pandemic. There is already a dearth of healthcare workers, and with the number of staffers getting infected only increasing, hospitals are in a fix.
Specialised hospitals need to be more cautious as they are already dealing with patients with various comorbidities. The government should strategise, and allow only multi-specialty hospitals to treat Covid patients. These specialised hospitals have immuno-compromised patients and taking in even one Covid patient would risk the lives of numerous others. Also, today, with hospitals seeing reduced footfall, pay cuts have become inevitable.
The government should reconsider the pricing cap, and consult hospitals before taking a call on such matters. We need to work hand-in-hand to fight this disease, but the private hospital industry’s hands are tied if it’s on the brink of collapse. Unfortunately, this time, it’s the hospitals that need care.
Co-authored by Dr B S Ajaikumar, chairman, HCG Oncology; and Mevish P Vaishnav, vice president, Policy, HCG
Dr B S Ajaikumar
Chairman, HCG Oncology