Recently, there has been a lot of buzz around the future of Indian healthcare. India's new NHPM initiative has received relentless coverage, ranging from positive to challenging, with everyone from government representatives to experts weighing in on this massive undertaking.

The Indian government seems to have the right intentions and focus. Since independence, the government's focus on healthcare has centered on primary care, which was the need of the hour, and it was effective. It helped reduce infectious disease, decreased infant mortality, improved maternal health, and increased overall life expectancy. Over time, patterns and requirements changed and evolved, and government focus did not keep pace with the expanding healthcare sector.

#NHPM is a clear indication of the Indian government's commitment to move beyond primary healthcare and focus on secondary and tertiary healthcare, particularly to sections of the population that do not have easy access to healthcare. By enabling the people with insurance, the government hopes to build demand for healthcare services, particularly in upcoming tier-2 and tier-3 cities.

Considering the scale and size of this ambitious initiative, getting it right the first time can be challenging, and initial implementation could get chaotic. The government can mitigate some of these challenges by continuing to listen to the market, monitoring the situation, and tweaking its policy over time.

Enabled by a public-private partnership, the NHPM initiative marks a shift in the Government's traditional role as the primary supplier of healthcare; for the first time, empaneled private hospitals will be able to offer public health services. #AyushmanBharat seems poised to change the healthcare scenario in India and businesses and investors would do well to look at this initiative from a long-term perspective. India is a price-sensitive market, with an emphasis on volumes. However, increases in demand will bring opportunities to localize products, innovate, and disrupt the market.

Technology will play a significant role. It is well established that once diagnostic and therapeutic markets settle down, preventive, rehabilitative, and palliative markets open up. There is a strong possibility of demand increasing exponentially. Businesses will need to understand the market, plan their strategy, and become part of the change happening around them.

The #NHPM initiative was officially rolled out September 2018 across various Indian states. As it moves from policy to patients, it should be an interesting market to watch.

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