During an informal talk with Prof. Jean Dreze (at University of Allahabad) on government’s approach to revitalize the health sector in India, a conclusive end was that without strengthening health infrastructure on government’s behalf, it would be difficult to gain fruits of allowing FDI in health and insurance sector. As Planning Commission emphasized the importance of health and insurance in 12th 5yr plan, it became worthwhile to prioritize certain policies and goals related with health sector to support the faster, more inclusive and sustainable growth. Till the date private health sector could not made accountable through regulating the provisions of hospitality in India. In the absence of effective regulation, increased government incentives in health sector will always absorb by the private hospitals, and chains of health care centres. Allowing foreign investment in health and insurance sector will benefit only private sector because dynamism of market forces will always catch this opportunity in absence of non-competent government health infrastructure. In fact government itself can prove things better by channelising the different health and insurance schemes through PPP and can create some legislative reforms to ensure accountability on private sector as has been done in case of Right to Education.
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