India’s healthcare sector is experiencing unparalleled computational growth, fueled by private equity and robust domestic inflows. This dynamic expansion positions India to accelerate its global presence. However, this growth often overshadows persistent challenges related to affordability and access for remote communities and the ‘missing middle’ grappling with rising premium costs. Addressing these critical matters, the ETHealthworld Healthcare Leaders Summit recently convened key industry leaders to explore actionable strategies for financial sustainability and healthcare equity in the sector’s growth trajectory.
Public-Private Synergy for Healthcare Equity
Dissecting the industry dynamics, Dr. Ashutosh Raghuvanshi highlighted the private sector’s strong momentum. Nevertheless, he noted that public healthcare retains a foundational role. Efforts to foster greater cohesion, notably through initiatives like the Ayushman Bharat Digital Mission (ABDM), have begun to create a more unified and accessible health system. Conversely, Dr. Devlina Chakravarty pointed out that while private healthcare continuously seeks to subsidize services through economies of scale, extending this beyond viable limits may alienate stakeholders from the ecosystem. She further suggested exploring public-private partnerships (PPPs) beyond mere service subsidization could address challenges more sustainably. Indeed, PPPs have shown reasonable success in India, streamlining appraisals and approvals through committees, and increasing private investment in healthcare infrastructure. Ultimately, effective collaboration between sectors is vital for improving access and affordability, particularly in rural India.
Advancing Universal Health Coverage and Disease Management
Prof. K. Srinath Reddy observed a lack of integration in the current universal healthcare coverage outlook, even between the National Health Authority and National Health Mission. He outlined that, with an aging population, the burden of non-communicable diseases (NCDs) is destined to rise. Aligning primary care for early diagnosis and systematically referring complex cases to secondary and tertiary care could facilitate achieving universal health coverage affordably. For example, the National Cancer Grid demonstrates the need for private healthcare facilities to collaborate in consortiums for drug and medical device procurement. This approach effectively helps drive down costs, consequently reducing patient expenses. India has made significant strides towards Universal Health Coverage (UHC) through policies like the National Health Policy 2017 and initiatives such as Ayushman Bharat, aiming to increase public health expenditure and provide financial protection.
Financing Solutions and Medtech Innovations
Vishal Bali underscored that only approximately 40 percent of India’s population holds some form of health insurance coverage, indicating a substantial need for accelerated penetration. For investors, Tier II cities represent the next phase of growth; however, adequately supporting cost challenges remains a significant hurdle. Dr. Jitendra Sharma added that India could explore innovative support models where the state assumes responsibility for primary care, while private insurance complements coverage by funding secondary and tertiary services. Furthermore, representing the Medtech sector, Dr. Sharma stated that India has significantly reduced its medical device import dependence from 96 percent to 60 percent, with aspirations of achieving import neutrality by 2032. Public-private partnerships are also crucial for expanding access to diagnostic services, especially in underserved areas, by integrating advanced technology and ensuring affordable pricing.
Future Focus: Prioritizing Primary Care and Mental Health
Looking ahead, Dr. Raghuvanshi warned that the curative aspect of healthcare will become exceedingly expensive. To control costs and mitigate this trajectory, the long-term solution lies in investing in primary healthcare. Fortis, for instance, has identified mental health as a key focus area, developing a comprehensive roadmap that includes dedicated centers, psychological services, and online support. Moreover, Bali emphasized that focusing on single specialties drives growth, as multi-specialty facilities often encounter challenging unit economics that impede expansion in Tier II cities. A single-specialty approach, conversely, helps overcome barriers without hindering growth and return dynamics. Ultimately, India’s journey towards health equity demands a balance between rapid private sector growth and strengthened public investment in preventive and primary care, fostering a people-centric, inclusive, and resilient healthcare ecosystem.
Frequently Asked Questions
Q1: What are the primary challenges to healthcare equity in India?
India faces significant challenges to healthcare equity, including issues of affordability and access, particularly for local communities in remote areas and the ‘missing middle’ who struggle with rising premium costs. Additionally, there are disparities in infrastructure, a shortage of healthcare professionals, and high out-of-pocket expenditures.
Q2: How do public-private partnerships contribute to improving healthcare equity?
Public-private partnerships (PPPs) can improve healthcare equity by combining the public sector’s extensive reach with the private sector’s innovation and efficiency. They are instrumental in expanding access to services like diagnostics, making them available in underserved regions, and helping to subsidize services beyond viable private limits when structured sustainably.
Q3: What role does primary healthcare play in achieving universal health coverage?
Primary healthcare plays a foundational role in achieving universal health coverage by enabling early diagnosis, managing non-communicable diseases, and systematically referring complex cases to higher levels of care. Investing in primary healthcare is seen as a long-term solution to control escalating curative costs and ensure accessible, affordable health services.
References
- Healthcare equity and the unfinished work of inclusion – ETHealthworld
- Universal Health Coverage in India: Progress achieved & the way forward – PMC
- Public-private partnerships can benefit healthcare in India – The World Health Organization
- India’s Progress on Universal Health Coverage – HealthVoice
- Public-Private Partnerships in Health Care under the National Health Mission in India: A Review
- India’s Health Equity: Challenges and Global Insights
- Addressing Health Equity in India: Challenges and Solutions – La Excellence IAS Academy
- PPP in Health Public Private Partnership
- Health care and equity in India – PMC – PubMed Central
- Public-Private Partnerships – Advancing diagnostics for a healthier India – Medical Buyer
- Decoding India’s healthcare landscape: progress and vision 2047 – EY
- The Role of Public-Private Partnerships in Strengthening India’s Healthcare Infrastructure
- India’s Journey Towards Universal Health Coverage (UHC): Ensuring Healthcare Freedom for All – eHealth Magazine
- India’s Healthcare Sector Growth: Market Size, Challenges, and Investment Opportunities (2025–2032) – Karnataka ENT Hospital & Research Center
- India’s Road to Universal Health Coverage – Drishti IAS
- Universal health coverage – World Health Organization (WHO)
- India’s Healthcare Growth & Investment Outlook – The Unlisted Intel
- From growth to scale: Why India is the next big bet for healthcare innovators – Pulse+IT
- Bridging the Health Equity Gap: How Digital Health is Driving Inclusive Care in India
- health equity in India
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