Impetus On Cost Control

The cost of our healthcare is getting out of control

- D V Sivaram

The Indian healthcare system comprises physicians, hospitals, pharmaceutical companies, medical devices, clinical trials, telemedicine, health insurance, medical equipment and medical tourism to name a few. The Indian healthcare sector is growing at a tremendous pace due to the ever increasing demand resulting from increase in standards of living and increased expenditure from both public and private sector.

Deloitte Touche Tohmatsu India has predicted that the Indian healthcare market, which is worth around $ 100 billion, will likely grow at a CAGR of 23% to $ 280 billion by 2020. The revenue of India’s corporate healthcare sector is estimated to grow at 15% in FY 2017-18.

Cost control 

'Cost control' in the current healthcare system is very important for the growth and development of industry and the economy as a whole. At present, the cost of our healthcare is getting out of control and it is very important for the government to intervene and take quick remedial action. If the healthcare costs continue to spiral upward and drugs and devices become increasingly unaffordable, it will not only contribute to inflation but create unrest and imbalance in the society. There will be pressure on the Government to provide affordable access to drugs, devices and healthcare by bringing in various incentives which will promote a subsidised economy. As such, it is very essential to control the cost of healthcare.