FICCI lauds move to accord ‘industry status’ to hospitalsMarch 5, 2019
The Federation of Indian Chambers of Commerce and Industry (FICCI), the largest business organisation in the country, has welcomed the government’s announcement of according ‘industry status’ and support for land acquisition, clearances and funding to private hospitals to boost expansion of healthcare infrastructure in tier 2 and 3 cities.
“In India, a skewed distribution of hospital beds, with their heavy concentration in the metros, has long been a challenge in reaching the last mile with quality healthcare provision. This opportune step by the government strongly reinforces private healthcare providers’ commitment towards improving access to quality care,” said Sangita Reddy, Senior VP, FICCI, and Joint MD, Apollo Hospitals Enterprise Ltd, in a media release.
In the last decade, 70% of the new bed capacity additions were in the private sector, which also caters to 70% of the in-patient and 60% of the outpatient healthcare demand in the country.
“The key to engage more private healthcare organisations will be a viable model for their sustainability,” said Brig Dr Arvind Lal, Chair, FICCI Health Services Committee and CMD, Dr Lal Path Labs Ltd. The new hospitals, which would be mandated to be empaneled under Pradhan Mantri Jan Arogya Yojana (PMJAY), or Ayushman Bharat, should be allowed to charge other patientswho can afford to pay as per market rates, as the current PMJAY package rates may not be sustainable to set up and run operations in such locations, he said. Apart from aiding the expansion of bed capacity, the new hospitals will open avenues for employment in tier 2 and 3 cities in the healthcare sector, FICCI said in the statement.