1. Impact of Preventive Health Care on Indian Industry and Economy
Dr. Alka Chadha
National University of Singapore
September 12, 2007
New Delhi
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2. Preventive health care
Today’s sedentary lifestyle of corporate employees invariably leads to long-term damage to health.
Knowledge-based economies rely on intellectual capital which is critically dependent on the quality and health of employees.
Preventive health care for employees is the need of the hour for the corporates to remain competitive.
The first ever survey done in India to understand and generate awareness regarding preventive health care measures in the corporate sector.
Preventive health care is about the individual and refers to health check-ups and lifestyle changes.
Preventive Health Care Seminar

3. Relationship between disease and economic growth
Absenteeism, early retirement, morbidity and mortality
Shorter lifespan and rise in the rate of time preference
Lower labour productivity
Higher dependency ratio
Higher consumption and lower rates of savings and investments
Lower national income and stagnant growth
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4. Preventive Health Care Seminar
Survey methodology
Preventive health care providers were contacted to share their experience of providing health check-ups.
The first phase of the survey was carried out for private companies from March to June 2007 with 81 respondents.
The next phase of the survey was targeted at individual employees for one working week with 288 responses.
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5. Preventive health care providers
Apollo Hospitals Group emphasized the need for regular check-ups since a disease can develop at any stage in life.
K.G. Hospital said a health check-up is like an “annual maintenance certificate”.
Jaslok Hospital said preventive health care is required to reduce not just absenteeism but also “presenteeism”.
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6. Preventive health care measures offered by companies
Preventive Health Care Seminar

7. Mandays lost owing to sickness
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8. Major afflictions according to management grades
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9. Does preventive health care increase profitability of a company
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10. Preventive Health Care Seminar
Employee survey
40% of respondents belonged to the manufacturing sector.
56% of respondents had undergone a preventive health check-up at some point.
Interestingly, the same percentage of responding employees were white-collared, among whom there is greater awareness and practice of preventive healthcare as compared to blue-collared workers.
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11. Benefits accruing to employees from preventive health care
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12. Should employers provide vouchers for preventive health care?
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13. What employers feel about vouchers as a delivery system
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14. International comparisons
Country
Per capita total health expenditure ($)
Per capita govt. health expenditure ($)
Share of private health expenditure in total health expenditure (%)
Share of out-of-pocket expenditure in private health expenditure (%)
Share of private prepaid plans in private health expenditure (%)
Brazil
212 96
54.7
64.2
35.8
China 61 22
63.8
87.6
5.8
India 27 7
75.2 97
0.9
S. Korea
705
348
50.6
82.8
4.1
Thailand 76 47
38.4
74.8
14.6
Canada
2669
1866
30.1
49.6
42.3
France
2981
2273
23.7
42.2
53.5
Japan
2662
2158 19
90.1
1.7
U.K.
2428
2081
14.3
76.7
23.3
U.S.A.
5711
2548
55.4
24.3
65.9
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15. Preventive Health Care Seminar
Demographic dividend
India is enjoying the competitive advantage of a young, English-speaking workforce while developed countries are facing the problem of ageing and rising health care costs owing to insurance charges.
Companies have to ensure that the labour force remains efficient and productive.
Thus, the need for preventive health care.
Preventive Health Care Seminar

16. Policy recommendations for the private sector
Conduct health audit of all employees at regular intervals through check-ups.
Follow-up with treatment and counselling.
Organize awareness camps.
Encourage employees to adopt a more healthy and preventive lifestyle.
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17. Policy recommendations for the government
Section 17 of the Income Tax Act provides exemption for medical expenses up to Rs.15,000 for employees. This should be amended to include the whole range of preventive health care measures.
Income Tax exemption under Section 80D of the Income Tax Law is provided for health insurance and medical treatment. Provision for a similar exemption should be made for preventive health care measures.
The government should provide fiscal incentives, like corporate tax breaks, to those employers offering preventive health care facilities to their employees.
We recommend preventive health vouchers as a service delivery system.
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18. Preventive Health Care Seminar
Thank You
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