Government schemes misaligned with healthcare realities, says AIG Hospitals Chairman Dr Nageshwar Reddy

He called for reforms that would better integrate private healthcare into the broader public health framework.

Published Aug 12, 2024 | 3:30 PMUpdated Aug 12, 2024 | 3:30 PM

Dr Nageshwar Reddy

Private hospitals in India have increasingly come under scrutiny, with people accusing them of prioritising profits over patient care and failing to align with the government’s health initiatives.

At the inaugural edition of Dakshin Healthcare Summit organised by South First and TV9 network in Hyderabad, the Chairperson of Asian Institute of Gastroenterology (AIG) Hospitals, Dr Nageshwar Reddy addressed these concerns head-on, acknowledging the criticisms while highlighting the systemic challenges that complicate the role of private healthcare providers.

Dr Reddy pointed to Indian government-introduced health schemes like Aarogyasri and Ayushman Bharat as examples of well-intentioned but fundamentally flawed initiatives.

‘Not always positive’

“Our interaction with the government is not always positive. The government has so many schemes – Aarogyasri in Andhra Pradesh, Ayushman Bharat of the Union government – all these schemes are okay to start with because health insurance is important, but they are misdirected,” he said.

These programs, designed to make healthcare more accessible, often impose standardised pricing that doesn’t account for the complex and high-cost procedures performed by tertiary care hospitals, he said.

Citing an example of one such sophisticated surgery at AIG Hospitals, he said, “We have the best endoscopy unit in the world, and it is certified by all the gastroenterology bodies. If I have to do endoscopy at a price that is being done in a small hospital in Karimnagar and Nizamabad, it is not possible.”

He emphasised that the financial viability of these advanced procedures is jeopardised under current pricing models. He suggests that the government should assign different rates for treatment by different tiers of hospitals.

He was speaking at the panel discussion titled “Improving Public Health and the Role of Private Hospitals,” a highlight of the summit in which, Bengaluru Rural MP and former director of Jayadeva Hospitals Dr CN Manjunath discussed the intricate relationship between the public and private healthcare systems.

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Public-private care is oxymoronic

Dr Reddy addressed the inherent contradictions in the expectations placed on private healthcare institutions. “Public-private care is a very oxymoronic term,” he noted, emphasising the distinct but complementary roles that public and private sectors play in healthcare.

He said that while public health is traditionally seen as the government’s responsibility, private hospitals have increasingly been thrust into roles that blend these boundaries.

“I’m in a private hospital, and I’m trying to create, with the government, a public type of care. Now, this is very oxymoronic: Public-private care. It’s a very oxymoronic term. They don’t go together,” he stressed.

“Public care is supposed to be at the root of public health, and private care is supposed to be the best care. How can both coexist?” Dr Reddy asked the audience, setting the stage for a discussion that would delve into the complexities of this coexistence.

People don’t trust private hospitals

One of the major challenges private hospitals face, Dr Reddy highlighted was the pervasive distrust of private healthcare providers. “There is a huge suspicion,” he said, acknowledging that many view private hospitals as profit-driven entities. This negative perception, he argued, is exacerbated by the actions of a few bad actors within the sector, which tarnishes the reputation of the industry as a whole.

He says, in general, private doctors are looked at negatively, which is because there is no role model to do something in public.
“We don’t have a role model in the private sector; we don’t have someone who is looked at as saying this person is doing good work in the private sector. So, the first important thing for us is to build that role model,” Dr Reddy adds.

Dr Reddy stressed the need for private hospitals to cultivate trust within the community. “We have to convince the community and society that what is being done by these private groups is in the interest of the patient,” he asserted. He called for the creation of role models within the private healthcare sector—icons who could demonstrate that private institutions are capable of delivering not just quality care, but also ethical care.

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Should we then have a PPP model for healthcare?

Despite the challenges, Dr Reddy remained optimistic about the future, particularly the potential for collaboration between the public and private sectors.

“Public health is still the government’s domain,” he acknowledged, but also emphasised that private hospitals have a crucial role in supporting and enhancing public health initiatives.

He said that there is a middle ground for the PPP model to work.

“In some areas, the private sector will be predominant, and the public sector will play a smaller role. In some areas, public health is predominant, and the government should take the help of certain private hospitals with certain expertise,” he said.

“For example, in areas of research, artificial intelligence, and so on, which is going very fast now, the government should collaborate. So, I think the public-private partnership is a must in a country. At what levels this happens can be different in different situations,” he opined.

He cited the example of AIG Hospitals adopting 40 villages in the Paneru area, providing state-of-the-art care to rural communities.

“We can aid from the private side, but not on a large scale,” he remarked, reiterating that the government must lead in public health efforts, with private institutions playing a supportive role.

Private hospitals need a regulatory body

Dr Reddy stressed that private hospitals need a regulatory body. He called for reforms that would better integrate private healthcare into the broader public health framework.

He advocated for a regulatory body that could rank hospitals and create transparency in the healthcare market.

“In our country, one of the worst things is that there’s no regulatory body for private hospitals. Nobody has ranked hospitals as A, B, C; that’s done all over the world,” he pointed out.

Citing examples of private hospitals collaborating and providing good health services, he said, “Mayo Clinic — a private hospital is iconic. India needs to create that. The private sector should work with the government in a better way. However, he reiterated that public health is still the government’s domain.”

“Private health should be tertiary care health. We should be looking after tertiary care. The public health part — like vaccinations, and clean water supply — all should be done by the government. We can aide from the private side,” Dr Reddy said.

(Edited by Muhammed Fazil)

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