COVID-19 and Healthcare Resilience

The COVID-19 pandemic exposed significant weaknesses in India’s healthcare system,

highlighting long-standing challenges in infrastructure, resources, and funding. Hospitals
struggled to keep up with the sudden surge in cases, leading to severe shortages of
ventilators, hospital beds, and personal protective equipment (PPE) for healthcare workers.
Testing facilities were overwhelmed, and delays in expanding testing capacity made it even
harder to control the spread of the virus. As hospitals focused on treating COVID-19 patients,
many non-urgent treatments were postponed, creating long-term health risks and economic
consequences for individuals and families.
The financial strain on the healthcare sector was equally severe. Many hospitals relied on
revenue from medical tourism and outpatient services, both of which saw a sharp decline
during the pandemic. At the same time, the costs of medical supplies and wages for
healthcare workers continued to rise, making it even harder for hospitals to stay financially
stable. For many low-income families, accessing healthcare became even more difficult,
widening the gap between those who could afford treatment and those who could not.
Even before the pandemic, India faced challenges in ensuring equitable healthcare access.
Rural areas, in particular, lacked sufficient hospitals and trained medical professionals,
leaving many communities without essential care. While urban hospitals became
overcrowded, people in remote areas struggled to find even basic medical support. This
uneven distribution of healthcare resources made it even harder to respond effectively to
the crisis.
Another major issue was the country’s reliance on out-of-pocket payments for medical
expenses. With limited public health insurance, many families had to bear the financial
burden of treatment themselves. As the pandemic disrupted jobs and income sources,
healthcare became an even greater financial strain, pushing many families further into
economic hardship. Migrant workers and economically disadvantaged groups were among
the most affected, as they faced additional barriers to accessing medical care and essential
services.
In response to these challenges, the Indian government took steps to support the healthcare
system. COVID-19 testing centres were set up, relief packages were distributed, and health
insurance coverage for COVID-19 treatment was expanded. Healthcare workers received
additional support through hazard pay and better protective measures. However, study
suggests that the pandemic underscored the urgent need for long-term reforms. Investing
more in public healthcare, expanding health insurance coverage, and strengthening medical
infrastructure, especially in rural areas, will be essential in building a stronger, more resilient
system. Additionally, addressing the shortage of healthcare professionals through better
training and retention programs will be key to ensuring India is better prepared for future
health crises (11).
Healthcare Spending and Economic Growth
Healthcare spending plays a crucial role in shaping a country's economic growth, but its
impact depends on how efficiently resources are used and a nation's overall income level.
Studies show that in low-income countries, increasing healthcare investment significantly
boosts economic productivity by improving people's well-being and making the workforce
healthier and more efficient. To truly maximize the impact of healthcare spending, it is
essential to focus on optimizing resources, ensuring fair access to medical services, and
prioritizing medical innovation rather than just expanding budgets.
Public healthcare funding is a long-term investment in a country's development (16). Unlike
short-term fixes, steady and well-planned investments in healthcare can create lasting
improvements in public health and economic stability. The private sector can also play a key
role in this process, collaborations between public and private healthcare providers can
improve service quality and make better use of resources.
To build a more efficient healthcare system, governments should prioritize preventive care,
cut down on unnecessary administrative expenses, and invest in cost-effective treatments.
One of the biggest challenges, especially for low-income communities, is the heavy reliance
on out-of-pocket healthcare payments, which can push families into financial hardship.
Creating fairer financing options, such as government-backed insurance programs or
subsidies, can help make healthcare more affordable and accessible to those who need it
most (12).
A strong public healthcare infrastructure is the foundation of any well-functioning system.
Expanding access to healthcare services, particularly in rural and underserved areas,
requires increased government investment in medical facilities, healthcare workforce
training, and new technologies (7). While investments in public healthcare may not show
immediate results, they are crucial for long-term improvements in health outcomes and
economic growth (16). To bridge existing gaps, policies should focus on strengthening
healthcare infrastructure, embracing technological advancements, and addressing
inequalities between urban and rural areas.
Health and economic growth are deeply connected. A healthier population means higher
productivity, better savings, and greater overall economic stability. Studies confirm that
public health spending has a direct impact on economic growth, reinforcing the need to
prioritize healthcare within national economic policies (16).
To truly integrate healthcare into economic planning, governments need to take a broader
approach, linking healthcare investments with education, labour policies, and infrastructure
development. Making healthcare a central part of economic strategies will not only improve
people's quality of life but also lay the foundation for long-term, sustainable economic
growth.