NATHEALTH Seeks Transformative Measures in Healthcare Ahead of Budget 2024-25

NATHEALTH has urged the Indian government to boost public health expenditure to over 2.5% of GDP and rationalise healthcare GST to a uniform 5%. Its pre-budget recommendations also call for innovative infrastructure investments and policy revisions, including input tax credit eligibility and prioritizing healthcare as a key sector.

Healthcare industry body NATHEALTH on Tuesday urged the government to raise public health expenditure to above 2.5 percent of GDP and rationalize GST for healthcare with a uniform 5 percent rate slab.

In its pre-budget recommendations, NATHEALTH also called for the implementation of transformative measures focused on strengthening healthcare infrastructure and making strategic investments to address both demand and supply-side challenges.

Finance Minister Nirmala Sitharaman is expected to unveil the budget proposals for fiscal year 2024-25 on July 23 in the Lok Sabha.

NATHEALTH President and Max Healthcare Institute Chairman & Managing Director Abhay Soi highlighted that India has made significant strides toward becoming a global healthcare powerhouse, contributing substantially to GDP and job creation. As the nation aims for a USD 5 trillion economy, providing quality healthcare for the entire population is a prerequisite.

Addressing healthcare challenges will require an estimated 2 billion square feet of advanced healthcare infrastructure. To meet these needs, increasing GDP spending on healthcare to 2.5 percent is crucial for enhancing social insurance, expanding facilities in tier 2 and 3 cities, and advancing digital health services, Soi added.

NATHEALTH advocated rationalizing GST with a uniform 5 percent rate for healthcare and full input tax credit eligibility; addressing the issue of unused MAT credits, and reviewing health cess policies for MedTech to ensure affordability.

Furthermore, it recommended declaring healthcare a 'national priority' status to facilitate better financing and offering tax incentives to encourage private sector investment in healthcare infrastructure, manufacturing, digital health, exports, and education across India on par with SEZ policies available in other sectors.

NATHEALTH also called for increasing the acceptability of the Pradhan Mantri Jan Arogya Yojana (PMJAY) and the Central Government Health Scheme (CGHS) among frontline quality providers in the private sector and unlocking private capital to achieve Universal Health Coverage (UHC).

The organization suggested easing compliance under ease of doing business using digital tools and promoting the medtech and supply value chain ecosystem for innovation and localization.

With India becoming a preferred choice globally, policies to promote India as a destination for a full stack of medical products, services, and solutions are essential, it said.

The upcoming budget must focus on healthcare infrastructure, innovation, skill development for medical professionals, and strengthening public-private partnerships to ensure improved access and quality across the nation. Prioritizing research and development will drive medical innovation and address emerging health challenges, Soi said.