| L-R: S Chandrasekhar, Immediate Past Chairman, CII Karnataka State Council & MD, Bhoruka Power Corporation; Dr Devi Shetty, Chairman, Narayana Hrudayalaya Hospitals; Dr Varma Vegesna, Chairman-CII, Healthcare Subcommittee & Managing Director, Lazarus Hospitals; Dr K K Kalra, CEO , NABH |
The Confederation of Indian Industry (CII) organised Karnataka Health Summit with the theme ‘Tipping point for Healthcare System’ on January 24, 2013 at Bangalore.
The summit was inaugurated by Dr Devi Shetty, Chairman, Narayana Hrudayalaya Hospitals. The other dignitaries present at the inaugural session included S Chandrashekar, Immediate Past Chairman, CII Karnataka State Council and MD, Bhoruka Power Corporation; Dr Varma Vegesna, Chairman-CII, Healthcare Subcommittee and MD, Lazarus Hospitals; and Dr KK Kalra, CEO NABH.
In his key note address Dr Shetty spoke about how taxes were raising the cost of healthcare in India. Explaining the taxes levied on hospitals he said that excise duty of 12.36 per cent, customs duty of 7.13 per cent which can go up to 12.36 per cent, central sales tax varying from two per cent to 14 per cent and sales tax were charged from hospitals. Added to these basic infrastructure taxes there is taxes on medical devices that cover 18 per cent of local taxes, 19 to 24 per cent of import duty for equipment, value added tax of 5.5 per cent, and dietary service tax of 14.5 per cent.
Stating the startling fact that the govenment categorises hospital under entertainment segment Dr Shetty pointed out that the hospitals payed same fare for power as entertainment industry – Rs 7 per power unit. “The government has failed to comprehend that the use of power is primarily to save patients’ lives,” he said.
In addition to the above tax components, the state government’s electricity boards mandates paying up a refundable deposit of Rs.1 crore when the hospital is commissioned and the irony is that the hospitals could never get the refund unless these are shut down, he pointed out.
He also spoke about the importance of empowering women and recruiting more female staff in the healthcare sector.
Chandrasekhar welcomed the gathering and stressed on the need for good quality healthcare at afforadable prices.
| M Maheshwar Rao, IAS Commissioner of Industrial Development & Director- Industries & Commerce Government of Karnataka; Alok Gupta, MD, Gerken Capital Associates, Mohan Kumar, Executive Director, NVP India |
Dr Vegesna delivered the theme address at the summit. He spoke about the importance of having green hospitals in healthcare sector. Dr Vegesna also spoke about the huge potential of Karnataka to develop into a medical tourism destination.
Dr Kalra, CEO, NABH attributed the growth of the healthcare sector to the growth in technology, lower direct taxes and increasing insurance coverage. He also spoke about the importance of safety in healthcare. He mentioned that lot of action is needed in terms of accessibility of healthcare service and quality of patient care. “Quality health systems lead to patient safety and public satisfaction,” he said, adding that the NABH had a local assessor in Bangalore to coordinate with hospitals.
The summit hosted a technical session on investment opportunities in the health sector and a panel discussion on varied topics like healthcare infrastructure and availability of medical personnel, current healthcare ecosystem in India – 360° perspective of different healthcare stakeholders, FDI in healthcare and its impact, and innovations in healthcare.
Dr Santanu Chattopadhyay, Founder and MD, NationWide Primary Healthcare Services, who was one of the panelists said, “Along with economic development, the government should focus on primary healthcare to ensure sustainability of healthcare. The need of the hour is to create good, cost-effective and accessible healthcare. For instance, on a per capita per annum basis, a developing nation like Cuba spends only $300 on a patient whereas a developed nation like the US spends $6,000. This difference indicates the lack of primary healthcare in countries like the US.”
He added, “In a country like India where much importance is given to secondary and tertiary healthcare, there is a huge scope to enhance primary healthcare. This could result in a drop in healthcare expenditure.”
The other speakers included Mohan Kumar, Executive Director, NVP India; Dr Kishore Kumar, CEO & MD, Cloudnine Maternity Hospitals; Dr Pankaj Gupta, Partner, Taurus Global Consulting; and Shyam Rajan, Senior Manager, GE Healthcare; to name a few.
The summit was attended by doctors, CEOs/ CXO, medical directors, medical and paramedical fraternity, healthcare professionals, medical service providers, and representatives of hospitals, medical colleges/institutes, and insurance companies.