[As traced in my book, the evolution of public policy in health
clearly shows how the private sector in India grew by default and the
persistent failure of the political system to articulate a consistent
and coherent policy to manage this elephant in the room. This is a
serious omission since the health sector has severe market failures
making government intervention an imperative, not a choice. Such
indifference to develop an appropriate framework of laws, systems,
protocols and the institutional architecture to regulate the sector is
a failure of governance.]

http://timesofindia.indiatimes.com/home/sunday-times/all-that-matters/it-would-be-catastrophic-to-follow-high-cost-healthcare-model-of-us-sujatha-rao/articleshow/57831912.cms

It would be catastrophic to follow high-cost healthcare model of US: Sujatha Rao

Rema Nagarajan | TNN | Mar 26, 2017, 02.12 AM IST

Private hospitals have been in the news for all the wrong reasons
lately. Sujatha Rao, former Union health secretary and author of the
book, Do We Care? India’s Health System, tells Rema Nagarajan that the
recent exposés underscore the need for greater investment in public
healthcare delivery as well as better systems to regulate the private
sector

You say in your book that the government has an ambivalent policy
towards the overwhelming private sector. Why?
The recent exposes in the media regarding the overpricing of cardiac
stents and establishing fake colleges by the private sector show what
happens in the absence of regulations. Fraud on such a large scale
cannot happen otherwise. ***As traced in my book, the evolution of
public policy in health clearly shows how the private sector in India
grew by default and the persistent failure of the political system to
articulate a consistent and coherent policy to manage this elephant in
the room. This is a serious omission since the health sector has
severe market failures making government intervention an imperative,
not a choice. Such indifference to develop an appropriate framework of
laws, systems, protocols and the institutional architecture to
regulate the sector is a failure of governance.*** [Emphasis added.]

Does the government have any option but to purchase healthcare from
the private sector?
As the private sector provides three quarters of outpatient treatment
and two thirds of hospitalisation, options to ignore it are limited
and the perception that government can provide all health services is
impractical. The government still has room to bring in a balance in
two ways. One, by creating the fiscal space to step up public
investment with at least 1% of GDP only for building the health
infrastructure, particularly in areas where government is the sole
provider. Two, by keeping its dominance in primary and secondary care
markets that address over 95% of medical ailments, prevent disease,
promote wellness, and in the long run, reduce costs for government and
households. Every country tries to keep control over healthcare
expenses, either by controlling primary care so that the push to more
expensive hospitalisation is regulated, or by regulating secondary and
tertiary care with protocols and price caps so that there are no
runaway surgeries and unnecessary care. If the whole chain is
privatised and unregulated as it is now, then it can become
unaffordable. In any case, government’s first charge is to ensure
universal access to public goods like basic healthcare, clean air,
water, environmental hygiene and nutrition. In my opinion, this is an
obligation the state cannot abdicate. This alone will reduce a
substantial burden of disease and out-of-pocket expenditure.

You say public policymaking is trending towards greater reliance on
consultants than building institutional capacity. Why?

Latest Comment

TIME IS THE BEST TEACHER, WAIT AND SEE.
Azad Hind

If you take a historical view, you will see a transition from reliance
on classical public health experts to commercial consulting companies
like Ernst Young or McKinsey, in helping draft public policy. This is
not a stable solution. What is needed, and government does not do
adequately enough, is investing in institutionalised research and
promoting knowledge to anchor policy on evidence. Our success in
reducing the incidence of communicable diseases like malaria, guinea
worm, polio or HIV/AIDS is largely on account of good quality evidence
that helped guide policy and implementation strategy. Health falls in
the realm of behavioural economics and regulating that requires
policies to be rooted in our own cultural and behavioural preferences,
social realities and political and administrative contexts. Besides,
such accounting firms also have conflicts of interest as many are also
consultants to private companies in the health sector and carry a bias
against government intervention and public health.

Budget 2017 does give a lot more to public healthcare delivery, doesn’t it?
It’s not the 28% increase that should concern us but the quality of
spending proposed. More worrying is the absence of a clear vision. In
this context I am glad to see the recently released National Health
Policy embedding a vision. One may disagree with it and there may be
some contradictions, yet at least there is a vision that will now
enable bringing in required regulations to mitigate any harm. The
challenge today, rather than spelling out schemes, is articulating a
vision for the next decade and an implementation plan that has a
national consensus to ensure it is placed above partisan politics.
Public health goals have been stated but realising them would need
huge investments in terms of trained people, and appropriate
infrastructure, particularly at the level of primary care. Primary
care is not just about polio drops and institutional delivery. It’s
about averting diseases that are expensive to treat. For example,
there would be no need for too many dialysis centres if we can control
hypertension and diabetes. Neglecting primary care means opting for
the high-cost, specialist-led and hospital-based US system of care.
The US is already paying a heavy price because of their model; in
India, it could be catastrophic.


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