NITI Aayog released its report titled ‘Reimagining Healthcare in India through Blended Finance’, recently. In its report, NITI Aayog highlighted that, India’s healthcare spending is least among BRICS countries.
Key Findings of the report
- The report highlights that, around 65 per cent of hospital beds in India cater to almost 50 per cent of the population in Uttar Pradesh, Karnataka, Tamil Nadu, Maharashtra, West Bengal, Telangana, and Kerala.
- Other 50 per cent of India’s population living in rest of 21 states and 8 Union Territories (UTs) has access to 35 per cent of hospital beds.
- It noted that, number of beds must be increased by at least 30 per cent for ensuring equitable access to healthcare facilities by people.
- Hospital sector in India accounts for 80 per cent of total healthcare market. In financial year 2017, it was valued at USD 61.79 billion, which is likely to reach USD 132 billion by 2023.
- As per report, health insurance contributes 20 per cent to non-life insurance business. This makes it the second largest portfolio.
Pradhan Mantri Jan Arogya Yojana (PM-JAY)
Report notes that, PM-JAY could increase the health insurance penetration from 34 per cent to 50 per cent in India. This would help in increasing the demand for in-patient services.
Impact of covid-19 pandemic
As per report, COVID-19 pandemic provided an impetus for expansion of home healthcare market in India. With social distancing norm, telemedicine solutions are emerging as a convenient alternative.
Market size of telemedicine
Market size for telemedicine in India was USD 830 million, as of 2019. It is expected to increase to USD 5.5 billion by 2025. It is growing at a CAGR of 31 per cent during 2020-25. Before the pandemic, it was estimated that, more than USD 500 billion private capital must be mobilised annually for meeting India’s sustainable development goals by 2030. It is expected that, under a business-as-usual scenario, USD 256 billion will be required by 2034 in a bid to address access, affordability, and quality healthcare.
What is Blended finance?
Blended finance is an approach of financing, in which catalytic funding from public and philanthropic sources is utilised for mobilising additional private sector investment, in a bid to realize social goals and outcomes.