Public health investments on rise, health services sales to decline: Economic Survey

Even as the public health investment has increased substantially in the recent years, the sales from health service sector is to grow at 18.6 per cent only during the next fiscal year against the boisterous growth rate of 25 per cent in the current year, according to the Economic Survey.
The Economic Survey presented in the Parliament on Thursday has rated pharmaceutical research and development as a leading driver of foreign investment and put the sector as a key area of growth in the future too.
“During 2010-11, sales of the health services sector had grown by 25.4 per cent. During 2011-12 and 2012-13, sales are expected to grow by a healthy 18.6 per cent and 20.5 per cent respectively on the back of higher occupancy levels in hospitals and revenues per occupied bed. However, major cost components like salaries and wages and other operating expenses are expected to grow at a faster rate of 21.7 per cent and 21.1 per cent respectively. The PAT of the sector is expected to fall by 24 per cent in 2011-12 and grow by17 per cent in 2012-13,” said the survey.
There has been an increase in public health investment in the country. The combined revenue and capital expenditure of the Centre and states on medical and public health, water supply and sanitation and family welfare has increased from Rs.53,057.80 crore in 2006-07 to Rs.96,672.79 crore in 2010-11 (BE). In addition to increasing resource allocation for the Health Sector the Government is also playing a critical role in facilitating access to health care delivery channels, public and private through subsidized health, insurance schemes, the survey said.
“The Rasthriya Swasthaya Bima Yojana (RSBY) is being extended to cover MGNREGA beneficiaries and beedi workers,” Finance Minister Pranab Mukherjee said.
The Survey highlights that the Janani Shishu Suraksha Karyakram (JSSK) was launched on June 1, 2011 to give free entitlements to pregnant women and sick newborns for cashless delivery, C-Section, drugs and consumables, diagnostics, diet during stay in the health institutions, provision of blood, exemption from user charges, transport from home to health institutions, transport between facilities in case of referral, and drop back from Institutions to home.
A sum of Rs.1437 crore has been allocated to the states during 2011-12 under the JSSK. In order to reach out to difficult, inaccessible, backward and under-served areas with poor health indicators, 264 high focus districts in 21 states have been identified based on concentration of SC/ST population and presence of left wing extremism for focused attention. A Mother and Child Tracking system has been introduced, which provides complete data of the mothers with their addresses, telephone numbers, etc. for effective monitoring of ante-natal and post-natal check-up of mothers and immunization services.
The Survey also points out that the Janani Suraksha Yojana (JSY), which targets lowering of Maternal Mortality Ratio by ensuring that deliveries are conducted by skilled birth attendants, has shown rapid growth in last three years, with number of beneficiaries rising to 106.96 lakh in 2010-11 from 90.37 lakh in 2008-09. The issue of governance, transparency, and grievance redressal mechanisms are now the thrust areas for the JSY.
Source:Pharmabiz