GS Mains Model Question & Answer : NITI-Aayog plan to effectively privatise the district hospital in TIER-1 and TIER-2 towns. Analyse? Comment

Q. NITI-Aayog plan to effectively privatise the district hospital in TIER-1 and TIER-2 towns. Analyse? Comment

Model Answer:

NITI-Aayog plan to effectively privatise the district hospital in TIER-1 and TIER-2 towns. Analyse?

It is based on 5 premises:

a) District hospitals need upgrading to provide good quality secondary care and some elements of tertiary care to reduce dependence on and overcrowding of medical college hospitals and corporate hospitals.
b) Dealing with Non –communicable disease which is increasing .
c) To balance the technical and manpower expert to deal with.
d) Incentivised private sector investment and participation in care delivery in such hospitals can fill this gap.
e) The proposed PPP model can function smoothly with shared facilities and dual payment system.

Criticism:

a) There is a doubt on the 4th premise that whether private investment should be preferred approach to strengthen the district hospitals
b) Private players are free to charge full treatment cost from patients not covered by govt schemes (such as RSBY) and the providers would be reimbursed by the govt for treating patiens referred by the govt.
c) Private players will be able to cherry pick the most lucrative districts where patients have a higher paying capacity.
d) Defeating the objective of national health policy.

Suggestion:

Need to enhance investment by the govt directly in public healthcare.
Training of health workers.
Better regulation of public health care facilities with better infrastructure as it benefits the whole society instead of thinking in economic gains.

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