Mr. Sameer Agarwal Comments on Increasing Govt health spend on GDP, Tax Relief and Increased Accessibility of Govt Schemes in ET Healthworld
Health and pharma industry stakeholders share with ETHealthworld their expectations from the upcoming Union Budget 2023-24. The experts are keen on increasing government health spending on GDP, tax relief, and increased accessibility of government schemes amongst others.
Dr. Sudarshan Ballal said the government must bring universal health insurance coverage for all including the missing middle on what India Inc wants from the Budget in Deccan Herald
These were some of the key demands of India Inc ahead of the Narendra Modi government's last full. Budget before the 2024 elections. Companies across the board expected the government to find ways to woo the electorate, especially in rural India, and strengthen its position as the world's fastest-growing economy. Here’s a roundup of corporate India’s key expectations from Budget 2023:
With the Covid-19 pandemic exposing vast chasms in India’s healthcare, industry watchers want the government to cater better to its underserved and unprivileged people.
Despite schemes like Ayushman Bharat Yojana providing free access to health insurance for low-income earners, there are not enough hospitals and healthcare services in the suburbs and rural areas to meet the demand, said Aster DM Healthcare Chairman and Managing Director Dr Azad Moopen. “Telemedicine can be extended to tribal, hilly, and rural areas that are typically unreachable by physical methods. This will be a big relief to the underprivileged populace given the pervasiveness of mobile phones in the nation,” said Dr Moopen.
The healthcare budget in Asia’s third-largest economy has remained worryingly low as a percentage of its gross domestic product. India spent 2.1% of its GDP on health in the financial year 2021-22 versus 1.3% in the previous year, according to the Economic Survey.
Public healthcare in the country needs more focus, others pointed out. “The government must bring in universal health insurance coverage for all, including the missing middle,” said Dr H Sudarshan Ballal, Chairman, Manipal Health.
He also expected the government to incentivise and empower healthcare workers to provide services in India’s hinterlands and villages, where more than 60% of its population resides.
Mr. Sameer Agarwal Comments On Hospital CFOs Voice Ineligibility For Input Tax Credit In GST As a Major Concern To ET Healthworld
ETHealthworld connects with healthcare CFOs to understand what are the issues they are undergoing and their expectations from the Union Budget 2023-24.
As we inch closer to Union Budget 2023-24 to be tabled on February 1 by Union Finance Minister Nirmala Sitharaman, the CFOs from the leading hospitals have been sharing their demands around the need for strengthening healthcare infrastructure, problems faced with GST, focussed approach towards preventive care from this year's budget.
Healthcare needs to be made a priority sector Sameer Agarwal, Group Chief Financial Officer, Healthcare has been growing very well, and it has grown more than 15 per cent CAGR in the last five years. I don't & expect this to slow down in the foreseeable future, with at least a 15 per cent CAGR in the next five years. We are really hoping that the government continues to partner to nurture this sector, and as a prelude to that, the first step would be to make healthcare a priority sector. This has been a longstanding demand, especially from the hospital sector, to make healthcare a priority sector."
Mr. Sameer Agarwal on What India Inc CFOs want from Budget 2023 | ET CFO
What India Inc CFOs want from Budget 2023
Finance honchos are looking for a non-populous Budget that will bolster the private investment cycle and boost consumption. Decriminalisation of corporate laws wherever possible, factor reforms, simplification of GST structure and rolling back inverted duty structure are among the wishlist they shared in an ETCFO panel discussion on Budget 2023.
Sameer Agarwal, Group CFO, Manipal Health Enterprises
Despite the elections, the government should not be too populous but walk the fine line between curbing high inflation and supporting growth.
The government needs to speed up the PLI investment and interest rates need to start tapering for capex cycle to come back. It should look into decriminalisation of law, simplifying law structure, dispute resolutions and creating infrastructure for adding more investments in the country. The Budget should give some benefits in terms of taxation, higher spending for healthcare and incentives towards buying insurance. The higher rate of tax on individuals is more than the corporate tax, which somewhere needs to moderate otherwise there will be a brain drain with startups and ultra HNIsmoving to lower tax rate areas such as Singapore and UAE. India is on the cusp of a fantastic next decade of growth and the government will need to support it.
Mr. Dilip Jose said expected industry revenue growth in FY24 would be higher at 10% : ICRA report | Business Standard
Dilip Jose, managing director and CEO of Manipal Hospitals, expected industry revenue growth in FY24 would be higher, at around 10 per cent. “I think the sector has the potential for a double digit growth, especially if the expectations on medical value travel come through,” said Jose, whose company is India's second largest hospital chain.
“Despite high input cost inflation, improving operating leverage, supported by the increasing scale of operations and continued cost optimisation measures, are expected to support a healthy OPM of around 20-22 percent in FY2023 and FY2024,” ICRA said.
ICRA maintained its stable outlook for the industry, citing rise in non-communicable lifestyle diseases, growing per capita spend on healthcare, awareness, and increasing health insurance.
Dr. Sudarshan Ballal in a New Year message to readers say Health- the greatest wealth of a nation in The New Indian Express
Health, the greatest wealth of a nation, says Manipal Hospitals Chairman
The recent unprecedented devastating Covid pandemic had many lessons for us. It showed us as the saying goes ‘Health is the greatest wealth’ we have and ‘a country is only as strong as its healthcare is’. Fortunately for us, both the citizens and the government have woken up to this and a slew of measures has been taken to make our nation healthy.
Another saying that I would like to emphasise is that ‘An ounce of prevention is better than a ton of cure’. This cannot be overemphasised. We as a developing nation have been struck by both communicable diseases (infectious diseases) and non-communicable diseases (lifestyle diseases) and this combination is an unbearable burden for society. This is again best dealt with in public, preventive, primary and promotive health.
Mr Sojwal Vora on Hospitals deploy business intelligence to enhance efficiencies across supply chain operations | Pharmabiz
Recognising the supply chain's vital role in healthcare, hospitals have started adopting business intelligence software to gather functional insights and improve efficiency across the business. Advancements in analytics via the use of big data, artificial intelligence (AI), and machine learning (ML), along with the advent of social media, have further significantly enhanced the pace of this activity. Deep analytics helps identify gaps in information from multi-source data sets to bring in coherency and improve efficiencies.
Technology is also playing a major role in aiding supply chains to be more effective. Cloud adoption is increasing, creating an optimal balance with the traditional on-premise IT infrastructure. Process-based ways of working with well-designed software handshakes between the backend ERP and the front-end hospital information system are helping limit person-dependent interventions to the minimum. Customized and centralized network tools are interconnecting all network hospitals into one large single web, thus providing a seamless experience to patients, clinicians & administrators alike. Optimized computing environments with purpose-built add-on systems address data integration better across the entire supply chain, Sojwal Vora told Pharmabiz.
Such streamlined digital networks across the healthcare infrastructure can help manage large volumes of procurement with efficiency. Hub and spoke models can be created to facilitate quicker material availability and optimize inventory. Supply chain disruptions can be offset through enabling tools like RPA (Robotic Process Automation) across the Order Realisation process, and by having a strong distributor consolidation strategy leveraging the national presence of new-age aggregators. Having an integrated Procure-to-Pay process that ably supports business deliverables is increasingly becoming relevant, said Sojwal Vora.