The 2023-24 budget incorporated some fundamental changes in the healthcare industry which are required to transform the sector. The Government has allocated a total of Rs. 89,155 crores in the 2023-24 union budget for the health sector. This allocation was an increase of around 13% over Rs. 79,145 crores allocated in the 2022-23 union budget. Out of the total planned healthcare expenditure in India amounting to Rs. 89,155 Crore, the Department of Health and Family Welfare would receive Rs. 86,175 Crore and the Department of Health Research would receive Rs. 2,980 Crore.
Some Crucial changes announced for the healthcare industry:
- Increased budget allocation for the National Health Mission. The allocation is Rs. 29,085 in the current 2023-24 compared to Rs. 28,974 crores in the previous year.
- Establishment of 157 new nursing colleges in co-location with the current medical colleges. This will help bridge the gap regarding the number of nurses required per bed.
- Launch of mission to eliminate sickle cell anemia by 2047. Once launched, the initiative will allow for universal screening of 7 crore people between 0 and 40 years in affected tribal areas.
- AYUSH ministry received an increased budget allocation of 28% – Rs. 3,647 crores from the previous year’s Rs. 2,845 crores.
- The National Digital Health Mission received an increase in budget allocation from the previous year’s Rs. 140 crores to the current Rs. 341 crore.
A big healthcare plan by the Government can mean different things for companies operating in healthcare. In general, a big healthcare plan may increase demand for healthcare services, creating opportunities for companies that can provide these services efficiently and effectively. Additionally, a big healthcare plan may involve new funding mechanisms, such as increased public spending or insurance coverage, which can create new revenue streams for healthcare companies. Overall, companies operating in healthcare need to be able to adapt to the changing healthcare landscape and be agile enough to take advantage of new opportunities as they arise.
Health Care Stocks to watch out for
Apollo Hospitals Enterprise Ltd: Apollo Hospitals Enterprise Ltd is a healthcare provider that operates hospitals, clinics, and pharmacies in India and other countries. Apollo Hospitals provides a range of medical services, including telemedicine services, medical education and research, and health insurance. Its business model involves a mix of self-owned facilities and partnerships with other healthcare providers.
Fortis Healthcare Ltd: Fortis Healthcare Ltd is a healthcare provider that operates hospitals and diagnostic centers. It offers a range of medical services, such as cardiology, neurology, oncology, orthopedics, gastroenterology, and more. The company also provides telemedicine services, home healthcare, and medical tourism. Fortis Healthcare has a network of hospitals and clinics in India, as well as international locations such as Dubai, Mauritius, and Sri Lanka.
Max Healthcare Institute Ltd: Max Healthcare Institute Ltd operates hospitals and diagnostic centers. It offers various medical services, such as cardiology, neurology, oncology, orthopedics, and more. The company also provides home healthcare, preventive health checkups, and medical tourism services.
Sun Pharmaceutical Industries Ltd: Sun Pharmaceutical Industries Ltd is a multinational pharmaceutical company based in India. It specializes in the development and production of generic drugs and branded pharmaceuticals. The company’s product portfolio includes many prescription drugs, over-the-counter medicines, and active pharmaceutical ingredients (APIs).
Dr. Reddy’s Laboratories Ltd: Dr. Reddy specializes in the development and production of generic drugs, biosimilars, and proprietary pharmaceuticals. The company’s product portfolio includes many prescription drugs, over-the-counter medicines, and APIs. The company also operates in multiple therapeutic areas such as cardiology, neurology, oncology, gastroenterology, and more. The company has a global presence, with operations in over 25 countries and manufacturing facilities in multiple locations.
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– Debraj Guha Thakurta & Nischay Avichal