I healthcare landscape, marked by the ambitious Pradhan Mantri Jan Arogya Yojana (PMJAY), aims to provide universal health coverage to millions. Yet, despite its noble intent and expansive reach, the scheme faces significant challenges, particularly concerning private sector engagement. With only 30 per of the nation’s 43,000 private hospitals empanelled under PMJAY, the programme’s effectiveness remains constrained. This situation calls for innovative policy measures, particularly taxbased incentives, to bolster private sector participation and ensure the scheme’s success.

A critical aspect of PMJAY’s current shortfall is the insufficient number of empanelled hospitals. This inadequacy is pronounced in several states, with a concerning disparity in the availability of healthcare providers per lakh beneficiaries. States like Bihar and Maharashtra lag significantly behind, underscoring a systemic issue that hinders the equitable distribution of healthcare services. The reluctance of private hospitals to join PMJAY is often attributed to financial concerns, notably pending dues from government schemes. This persistent issue not only discourages participation but also impacts the quality and accessibility of healthcare services. To address these challenges, the government must adopt a more proactive approach by introducing tax-based incentives for private hospitals willing to empanel under PMJAY.

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A modest tax rebate, for instance, could serve as a powerful motivator, encouraging more private entities to participate in the scheme. This strategy is not without precedent. Countries like Egypt have successfully implemented similar measures, offering tax exemptions to private hospitals that provide free beds, thereby ensuring broader healthcare access. Such incentives can create a win-win situation, where private hospitals benefit financially while contributing to the public health infrastructure. Furthermore, the government could explore policies that allow private hospitals to use pending dues as collateral for bank loans. This approach would provide immediate financial relief and encourage hospitals to stay engaged with PMJAY, enhancing the scheme’s stability and reliability.

Another potential solution is to expand the Digital Health Incentives Scheme (DHIS), which rewards private facilities for creating and linking digital health records. By integrating similar incentives into PMJAY, the government can promote the adoption of digital health technologies, improving service delivery and patient outcomes. Expanding PMJAY to include senior citizens, as promised, further accentuates the need for robust private sector participation. This demographic is particularly vulnerable, with higher healthcare needs and a greater prevalence of pre-existing conditions. Without sufficient private hospital involvement, the scheme may struggle to provide adequate care, leading to situations where beneficiaries are left searching for facilities that accept their health cards.

This scenario underscores the importance of a comprehensive approach that combines policy innovation with practical incentives. The Union Budget 2024, while progressive in many areas, missed a crucial opportunity to enhance PMJAY’s reach and efficacy through such tax-based incentives. As India prepares for future healthcare challenges, it is imperative to prioritise strategies that foster private sector collaboration. By doing so, the government can ensure that PMJAY not only meets its current goals but also evolves into a sustainable and inclusive healthcare model.