Budget 2024: NATHEALTH calls for major reforms to catalyze healthcare expansion

New Delhi: NATHEALTH – the Healthcare Federation of India – has submitted comprehensive recommendations for the Union Budget 2024-25. These recommendations advocate for transformative measures focused on strengthening healthcare infrastructure, strategic investments to address both demand and supply-side challenges, and elevating public health expenditure above 2.5 per cent of GDP.

Abhay Soi, President of NATHEALTH and Chairman & Managing Director of Max Healthcare Institute Limited, highlighted “India has made significant strides toward becoming a global healthcare powerhouse and this has substantially contributed to GDP and job creation. As the nation progresses toward achieving 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% is crucial for enhancing social insurance, expanding facilities in tier 2 and 3 cities, and advancing digital health services.”

He added, “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.”

NATHEALTH’s submission underscores the need to enhance the acceptability of PMJAY/CGHS schemes among private sector providers, unlock private capital for achieving Universal Health Coverage (UHC), and streamline compliance through digital tools. The federation also emphasizes the importance of promoting innovation and localization within the MedTech and supply value chain ecosystem. With India emerging as a global healthcare hub, policies to position the country as a preferred destination for comprehensive medical products, services, and solutions are deemed essential.

Key recommendations include rationalizing GST to a uniform 5% rate slab for healthcare with full input tax credit eligibility, addressing unused MAT credits, and reviewing health cess policies to ensure the affordability of MedTech products. NATHEALTH also advocates declaring healthcare a National Priority status, facilitating better financing, and offering tax incentives to boost private sector investment in healthcare infrastructure, manufacturing, digital health, exports, and education across India, comparable to SEZ policies in other sectors.