335% rise in health funds in 12th plan

While Universal Health Coverage and National Health Mission remain the cornerstones of the health plan,public private partnerships — one of the points of dispute between the Planning Commission and Health Ministry — have been dwelt on at length. Another irritant — a plan to dole out funds to states as assistance through an incentive grant has been retained too.

States would be eligible for some part of the NHM money if they maintain their health expenditure as a certain proportion of their budget and prepare a statewide health plan based on district plans.

On PPP,the plan document cites examples of Institute of Liver and Billiary Sciences,Delhi,but observes that the government’s effectiveness in managing such arrangements is not good. Without regulatory mechanisms it is difficult to make them work though under the changed infrastructure status accorded by the Finance Ministry to the sector,it is now possible for private parties to claim up to 20 per cent of the cost of a project as viability gap funding,it notes.