COVID-19: Global healthcare spending expected to reach over $10 trillion by 2024
Kolkata, Apr 9 (FN Representative) As the world continues to fight one of the biggest health crises, global healthcare spending (combined public and private health care spending) between 2020 and 2024 is expected to rise at a 3.9% CAGR, considerably faster than the 2.8% recorded in 2015–2019 and is expected to reach over $10 trillion by 2024.
COVID-19’s global grip is likely to extend well into 2021. The Indian Government has undertaken deep structural and sustained reforms to strengthen the healthcare sector. As per the Union Budget 2021, a sum of Rs 2.23 lakh crore has been allocated for healthcare and wellness initiatives in the Union Budget 2021-22, which is a whopping 137% increase over the previous year. “Healthcare spending should recover as Indian government invest heavily to control the pandemic by carrying out the largest vaccination drive and with recommencement of deferred surgical and diagnostic procedures,” as mentioned in the report on ‘Healthcare Evolution Curative to Preventive’ released by RBSA Advisors.
India’s public health expenditure (sum of central and state spending) has remained between 1.2% to 1.6% of GDP between FY 2008-09 and FY 2019- 20. The Economic Survey FY 2020-21 observed that an increase in public healthcare spending from current levels to Rs3% of GDP can decrease the out-of-pocket expenditure which is non-funded from Rs65% to 30% of overall healthcare spending. According to the report, India’s 26% of the population is expected to be above 45 years of age by FY 26, which will have greater requirement for healthcare. Further due to increased urbanisation and sedentary lifestyle, the incidence of non-communicable lifestyle diseases is anticipated to increase faster than any other segment. India is gradually emerging as a destination for elective and critical treatment on account of lower costs, better patient care and sophisticated medical technology.
Rajeev Shah, MD and CEO, RBSA Advisors said, “While the Healthcare industry is still in its adoption stage, we believe it is well-positioned to testify the long-term growth in the upcoming years”. Covid-19 accelerated many trends for Healthcare Industry that were already underway. The future of healthcare is taking shape in terms of delivery of digital healthcare through adoption of technologies such as Artificial Intelligence, Virtual/Augmented Reality, robotics and nano-technologies, said Bhavik Shah, Vice President from RBSA Advisors. It is the time to witness how technology is being levered to augment care and reduce chances of error, specially the importance given to tele-medicines and tele-consultations. India has achieved breakthrough success in developing state of art technologies, increasing public spending, digitalization, and infrastructure development. Healthcare REIT, decline in capital cost, adoption of digital services like telemedicine,Government’s effort on narrowing down healthcare gaps with the help of increase in budgetary allocation for the sector and scheme like Ayushman Bharat proving a game changer and taking the services to the masses.