THE GOVERNMENT MUST NURTURE PPPs IN HEALTH CARE”
Dr. Prathap C. Reddy, Chairman, Apollo Hospitals, pioneered private health care as a business in India way back in 1983. He elaborates on health care challenges in the country in an interview with Business Today’s P.B. Jayakumar. Excerpts:
Q. As the pioneer of private health care enterprise, how do you evaluate growth of the sector over the years?
A: Private players have built world-class infrastructure comparable to the best in the world and offer world-class health care at 1/10th the cost of developed countries.
But one of the main challenges for the health care sector in India is the shortage of beds. We need to add 100,000 beds per year for next decade. So there is room for more providers and expansion. While Indian health care is growing rapidly at a CAGR of 15 per cent, still there are vast unmet needs. It is a capital-intensive business and most hospitals are making reasonable but not excessive returns, contrary to perceptions. However, signs of consolidation are already apparent. I see Indian private health care consolidating in next 5-10 years and there will be no more than two-three panIndia players of scale and varied strategies will be at play.
Q. How will the future health care scenario in India evolve?
A: The next big concept that we are driving is “Heal in India” which combines the hospitals, wellness and naturopathy capabilities in recognised centres to create a holistic healing experience. The government must nurture greater PPPs in health care, as in other sectors like roadways. Furthermore, harnessing IT, we must continue to reach out to people in remotest places and serve their health care needs to bring about a sea-change in the overall model and will be one that the world can emulate.
Q. What needs to be done to resolve the shortcomings in India’s health care?
A: Three critical shortcomings that India faces are an acute shortage of health human resources, woefully inadequate infrastructure and low penetration of health insurance.
India needs to very quickly double its doctors, triple its nurses and quadruple its allied health workers. In addition, the government must explore more innovative PPP models in medical education. Policies should look at harnessing virtual learning. Another is encouraging reverse brain drain and motivating thousands of doctors of Indian origin to return to the nation.
In infrastructure innovation is a must. The large numbers of beds available in the public health sector must be upgraded, PPPs should be initiated, innovative ambulatory care models must be explored to de-congest hospitals and above all, a culture of prevention and wellness must become commonplace to address the growing disease burden.
Finally, the nation needs to make Universal Health care a stronger reality and India must set a precedent in introducing innovative community insurance.
Q. How will Apollo function once you retire, which is a concern for all your shareholders and well-wishers?
A: Apollo is today a professional organisation. My four daughtershave done a phenomenal job so far in their respective roles. I am confident that after my retirement, they will continue to carry forward the company’s vision. While some of my grandchildren have joined the company, the others are taking their time. The family constitution, which we signed on February 1, 2017, allows them time to explore other businesses before they come back. To foster meritocracy and transparency in management, the roles will depend on interest, performance and achievements they show in the relevant business.