One of the key initiatives of Modi Government is Ayushman Bharat. Under the scheme, government has given health insurance cover worth Rs. 5,00,000/- to 10 crore families of the country.
But the true beauty of scheme lies elsewhere. The other focus of scheme is to boost healthcare infrastructure in Rural India. The beneficiaries of insurance are mostly from villages and low income groups, who don’t have access to required healthcare facilities. As a globally acknowledged rule, healthcare facilities will prosper and grow, where there’s demand and money. So the facilities are likely to open up near those remote areas to tap into the insurance money involved.
Another major overlooked aspect is the insurance sector itself. Although, health insurance gained slight momentum recently but it was limited to tier I and tier II. The scale at which the insurance sector got new business overnight is bound to force them to bring in innovative products at low costs. After all, every knows about and abide by the principle of economies of scale.
But what’s in it for common-law besides improved healthcare? It’s business opportunity, and that too at a scale you can’t imagine. Such huge potential for development of infra can’t be done by single or a few companies. They can’t do everything and this leaves a vacuum for other to step in. With money coming in hands of insured people, their healthcare spendings going to rise. With increased spending, hospitals and doctors would get more liquidity and cash in their hands mean more hospitals and improved facilities. Hospitals in tier III cities would entail huge demand for medical supplies and machinery. So it’s time for medical equipment manufacturers and dealers to cheer. Medical industry is also highly labour intensive. Besides doctors and nurses, they are among the biggest employers for housekeeping staff, security staff, and other small unskilled and semi-skilled labour. Rise in infra would also lead to rise in opportunities for contractors, interior designers, information and technology people, financial management personnel and lots of other arenas.