Azad Moopen, Chairman of healthcare chain Aster DM Healthcare said the proposals to set up viability gap funding (VGF) will drive investors to consider setting up hospitals in public-private partnership (PPP) mode.
"VGF will definitely help many people who want to invest in tier-2 and tier 3 towns and cities to be interested," Moopen said in a telephonic interview to Moneycontrol.
"Also, the model for establishing medical colleges attached to district hospitals under PPP mode will help solve healthcare access, medical education and availability of doctors," Moopen added.
Aster is one of the largest healthcare company with 13 hospitals and a capacity of 3,693 beds concentrated in South India.
Moopen welcomed the government aim to eradicate tuberculosis (TB) by 2025 but said he isn't sure whether five years would be enough to eradicate TB with the current efforts.
The Finance Minister in the Budget 2020 announced 'TB Harega Desh Jeetega' campaign shall be strengthened to end tuberculosis by 2025.
Moopen expressed concern over a minor increase of expenditure on healthcare.
"If you want to have decent healthcare delivery, the government should contribute 2.5 percent of GDP and private sector 1.5 percent. The expenditure together should be about 1.5 lakh crore. But there is a huge gap in demand and supply of funding," Moopen said.
In terms of Gross Domestic Product (GDP), the government spend on healthcare is 1.6 percent in FY20 budget estimate a small rise from 1.5 percent in FY19. But it is well below most emerging economies.
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