Kerala’s health sector needs selective private participation, says Muraleedharan

Health Minister K. Muraleedharan has said that given the fragile fiscal health of the State, private participation might be required to develop the health sector. The government will, however, ensure that this does not translate into additional healthcare expenditure for the people, he added.

Talking to reporters at Kozhikode on Friday, Mr. Muraleedharan said that just as the Left had opened up the State’s higher education sector for private investment, a certain amount of private sector engagement would be needed in the health sector, especially since the State’s financial position was in the red.

“If some reputed private firm steps up to invest in infrastructural development — a new hospital building for the public sector, perhaps — we will definitely accept it,” he said.

Maximum use of CSR funds

The government will however be very selective about the private investors in health. “We will make maximum use of the corporate social responsibility (CSR) funds made available by firms for the health sector. We also welcome sponserships in the health sector from reputed firms,” Mr. Muraleedharan said.

He said this was one of the many innovative ways in which the government intended to improve and develop the health sector. The government singlehandedly might not be able to turn the State’s health sector around, with the State’s current fiscal position, he added.

It may be recalled that the Health Commission set up by the UDF, then in the Opposition, had a dedicated sub-section in its report on “Mobilising CSR, philanthropy and innovative financing,” which recommended the creation of a Kerala Health CSR Fund and portal for pooled corporate contributions.

‘Supplementary activity’

It also spoke about launching a Health Innovation Challenge Fund, supported by CSR and foundations, exploring social impact bonds and investments from non-Keralites and partnering with charitable institutions for tertiary care in underserved areas in the State. The report had acknowledged that “private sector investments, innovations and services have a major stake in the success story of the State”.

However, it stressed that all private sector engagement would be a supplementary activity and not a replacement for public provisioning in health. It also stressed that any public-private partnership (PPP) or CSR arrangements must have government oversight and quality standards.