India’s Impending Health Care Crisis
India is one of the few major countries in the world that currently does not have any health care policy to speak of at the national level other than “indifference”. In India the type of health care that you get clearly depends on your finances. Medical insurance similar to the ones offered in the West are catching on but a vast majority of Indians are completely exposed and are at the mercy of poorly run and maintained government hospitals.
The economic survey submitted to the Indian parliament indicates that India needs over 6800 hospitals in rural areas alone based on the 2001 census. India is currently conducting the 2010 census and the number of hospitals needed is likely to increase significantly. But this is only the tip of the problem. According to the survey about 29% of the health infrastructure is currently in rented buildings and many of the facilities cannot provide basic services like X-rays or in-patient services.
But before the government goes around building hospitals and updating the existing ones it has to clearly state what the official health care policy is at the highest level. Is the goal of the government to cover every Indian citizen (universal coverage)? Is it going to be a government controlled service or will private entities have a stake in it? What type of impact will it have on the national GDP? What types of procedures and services will be included as part of its policy and what are those that will not be covered? What are the costs including deductibles that the citizens have to bear?
After almost an entire year of intense debate the American government under President Obama passed the Health Care bill. People know that one of the goals of the bill is to cover most of the almost 50 million Americans who do not have health insurance. But the rest of the details of the bill remain murky. At the moment government health care costs in America stands at about 16% of GDP and is likely to grow higher under the new bill.
Unlike the United States the Indian government has an opportunity to build a health care system from the ground up which is fair, equitable and one that will last for a long period of time. The American system is deeply flawed and very expensive. But it next to impossible to reform it because of interests that are deeply entrenched (insurance companies, hospitals and health care workers).
The Indian government would be wise to study the various health care systems followed by other large nations and then build a system that is efficient and will fit the needs of its citizens. Unfortunately surveys like these that expose the gaping holes in Indian society will normally provoke the government into formulating policies that are not well thought out. If we consider how huge the problem is it is fair to conclude that the Indian health care crisis cannot be solved by the government alone and any policy should include avenues for significant foreign and domestic investment in the health care sector.
Insurance sector in India continues to be dominated by government insurance companies. Insurance reform is badly needed in India and is one of the topics that the US Secretary of Treasury, Timothy Geithner will be discussing with his Indian counterparts during his current visit to India.
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Category: News & Government