Foreign investment is boosting technology and infrastructure in Indian healthcare, but rural access is still lacking. Stronger public-private partnerships and outreach initiatives can bridge gaps, reduce waiting times, and deliver quality care across all regions.
Dr. Abhishek Mannem, Medical Director, Bangalore Hospitals
Shahid Akhter, Consulting Editor, FEHealthcare, talks to Dr. Abhishek Mannem, Medical Director, Bangalore Hospitals, to figure out the need to strengthen public-private partnerships to ensure that quality care reaches every region.
Foreign investment in healthcare is pouring into India. ow will such investments impact the Indian healthcare ecosystem?
A: Over the last few years, demand for the Indian healthcare sector has shot up substantially, and this has attracted foreign as well as local investors. Between 2000 and 2020, the sector drew nearly USD 25 billion in foreign investment. Approximately USD 15 billion was invested in the pharma industry, and USD 6 to 7 billion was invested in hospitals, diagnostics, and other healthcare services. In recent times, even in the 2024 financial year, the hospital segment has attracted a whopping USD 1.5 billion in foreign direct investment; that is, almost 50 percent of overall healthcare FDI. Major global investors such as KKR and Advent Group have also been keenly interested in India's hospital business. Although this capital inflow guarantees improved medical technology, enhanced infrastructure, and quality services, it also poses critical concerns.
On the one hand, increased funding allows healthcare providers to acquire state-of-the-art equipment, from diagnostic machines to surgical robots, so that clinicians can provide quality care. At the same time, it’s essential that ethical considerations remain paramount, ensuring physicians are free to recommend only what is truly best for their patients. Accessibility is also an issue; the majority of the investments still focus mainly on Tier-1 and Tier-2 urban areas, neglecting rural and Tier-3 regions. For overseas investment to actually improve Indian healthcare, it requires a balanced strategy that brings together technological development and ethical and high-quality medical treatment for the underserved populations.
What policy changes could improve collaboration between government and private hospitals?
A: India's healthcare delivery system is primarily bifurcated between public sector institutions, such as central and state government-run tertiary care facilities, and privately run hospitals, either single-specialty, multi-specialty, or part of corporate chains.
The main challenge is the limited integration across the two systems, specifically regarding government-funded insurance schemes such as Ayushman Bharat or state-level schemes such as Arogya Karnataka.
Most private hospitals are not involved in these programs because of reimbursement caps and bureaucratic barriers. As a result, government centers tend to become overcrowded, with waiting times for as much as six months for essential treatments such as elective cardiac surgery. Increased coordination could close this gap. Diverting partial patient volumes from congested public facilities to sanctioned private hospitals would reduce waiting periods and offer timely treatment for serious ailments. In order to do so, reimbursement mechanisms must be altered to compensate private providers reasonably, with a view to inducing more participation in government healthcare schemes.
Development of robust public-private partnerships enabling mutual sharing of infrastructure, diagnostic centers, and surgical capacity can dramatically enhance efficiency, make the best use of resources, and ultimately serve patients across all socio-economic groups.
Why has Bangalore Hospitals extended its outreach activities to regions like West Bengal?
A: At Bangalore Hospitals, we see community outreach as a vital part of our commitment to patient care. In Karnataka, our team regularly conducts medical camps in 20 to 25 villages, working closely with District Health Officers and ASHA workers to offer specialty consultations, ECG and echocardiography screenings, and preventive health awareness programs, often at low costs.
This model has played a key role in enabling early detection of cardiovascular, metabolic, and other long-term diseases and encouraging preventive healthcare in rural communities.
We made the decision to take these outreach efforts to West Bengal due to evidence indicating that a large number of individuals from the state were going to Bengaluru for quality treatment.
The cost and logistics of undertaking such a journey, involving expenses for accommodations and follow-up consultations, can be substantial. To solve this problem, we have implemented a monthly camp model in various districts of West Bengal, wherein our experts conduct consultations and diagnostics within the local area. Patients requiring surgery are thereafter taken to Bangalore hospitals for treatment with follow-up after surgery in their hometowns. This system reduces the financial burden on the patient and maintains consistent care without affecting clinical results.
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