Health Policy

Maharashtra Needs to Spend 78 bn in Healthcare by 2018

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maha logoMaharashtra needs to increase its spending over healthcare to Rs 74 billion by 2018 to meet challenges in the key sector and rising cost of medical care, a research institute said.

The state being second largest in terms of population with growing urbanisation there is a need to look at the growing healthcare costs , informed International Institute of Health Management Research (IIHMR) .

The state where 45.2 per cent people reside in urban areas with an income of over Rs 15,40,000 crore, the State Government has allocated a sum of Rs 2,296 crore to the health sector in 2015-16.

“According to the National Sample Survey Office (NSSO) the average cost of hospitalisation in India has risen from Rs 8851 to Rs 24436.The average cost of hospitalisation in Maharashtra alone is Rs. 20,475 out of which 19.2 per cent  people have been utilising the services of public hospitals and 80.8 per cent have been utilising the services of private hospitals. According to Ministry of Health and Family Welfare, the percentage distribution of Public Health Expenditure in Maharashtra alone is 8.70 per cent, the highest after Uttar Pradesh,” said Dr Ashok K Agarwal, Dean, IIHMR-Delhi.

Maharashtra’s health budget needs to be a little more ambitious to overcome the lack of public health and medical facilities and fill in skill gaps of huge vacancies in rural hospitals and other centres as well as PHCs, it said.

The state should also look at investing in healthcare IT, which is expected increase by CAGR of 13.4 per cent during 2015 to 2020, IIHMR said.

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