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Healthcare PPP likely to get Budget Boost via PMASBY

ICICI Securities 20 Jan 2022

In the backdrop of continuing pandemic shocks and its implications, we expect the government to put significant trust on healthcare infrastructure by combining execution power and skills of private hospitals to cater to secondary / tertiary / quaternary services while using its own channels and infrastructure to handle primary care at the grass root level. The role of private hospitals cannot be over-emphasized especially with their involvement in handling the pandemic during the peak of the second Covid-19 wave.

The last year’s Budget had made a passing reference to a new centrally sponsored scheme, PM Atmanirbhar Swasth Bharat Yojana (PMASBY), to be launched at an outlay of about Rs 64,180 crore over six years. Among others, it included an important aspect of establishing critical care hospital blocks in 602 districts and 12 central institutions. We expect the government to involve private hospital players in this intervention via the PPP model as proposed by Niti Aayog in sync with NHP 2017.

Any further announcements especially with reference to PMASBY or towards PPP involvement could be beneficial for Pan-India Hospital chains such as Apollo, Narayana and Shalby among others.