Union Budget: NATHEALTH asks govt to address systemic gaps in healthcare in upcoming Budget

New Delhi: Healthcare industry body NATHEALTH has asked the government to address systemic gaps such as acute shortage of medical specialists, escalating cancer care costs, and inadequate hospital infrastructure to meet the demands of a growing population in the upcoming union Budget. In its pre-Budget recommendations, NATHEALTH sought increasing budgetary allocations of the healthcare sector to over 2.5 per cent of GDP and asked Finance Minister Nirmala Sitharaman to address the growing burden of communicable and non-communicable diseases, compounded by long standing challenges. “The upcoming Union Budget offers an unprecedented chance to address systemic gaps such as the acute shortage of medical specialists, escalating cancer care costs, and inadequate hospital infrastructure to meet the demands of a growing population,” NATHEALTH President Abhay Soi said in a statement.

Soi, who is also the Chairman & Managing Director of Max Healthcare Institute Ltd, further said, “Expanding hospital capacity, viable reimbursement frameworks, reducing treatment costs, and advancing medical education will not only address current challenges but also secure India’s position as a global healthcare leader. These efforts will ensure a healthier and more sustainable future for all.”

India’s healthcare sector is at a defining crossroads, presenting both complex challenges and transformative opportunities, he added.

NATHEALTH said there is a need to reduce cancer care costs by removing customs duties and reducing GST to 5 per cent on oncology radiation equipment, such as LINACs, to expand cancer treatment capacity in underserved regions.

It also asked the government to “allocate proceeds from healthcare cess and the proposed 35 per cent GST slab on tobacco and sugar products to strengthen public health programmes”, while advocating a unified 5 per cent GST on all healthcare goods and services to reduce input costs. The industry body sought viable insurance reimbursement rates, saying index reimbursement rates under schemes such as CGHS, PMJAY, and ECHS to the Consumer Price Index (CPI) need to ensure financial viability, given that many rates have remained unchanged for nearly a decade. Further, it asked the government to announce a fund to support R&D and reward Med-tech innovation in India (including GCCs) while transitioning to quality linked standardised procurements norms towards value-based care.

Stressing on the need for expanding medical education, NATHEALTH proposed increasing MBBS and postgraduate medical seats through government-led investment, supported by alternative financing mechanisms such as loans and interest subventions.