The state government has given administrative sanction for the World Bank-funded Kerala Health System Improvement Programme (KHSIP), which will be implemented at a cost of Rs 3464 crore. The project is proposed to be implemented in all 14 districts of Kerala with a project duration of 5 years, starting from 2025 to 2030.

The project will receive an external assistance of Rs 2,424 crore from the World Bank, and the balance amount of Rs 1,038.87 crore will be provided by the state. The proposal will be accommodated within the overall normal plan allocation of the health sector for the entire project implementation period, as this has to be accommodated within the borrowing ceiling of each year. 

While considering the proposal, the Finance department has remarked that since this borrowing will be permitted within the state's annual borrowing ceiling and the state has to bear additional financial commitment on account of state share of 30% as per the shared funding pattern, a clear-cut strategy should be worked out to accommodate this expenditure within the possible budget resources during the course of the implementation of the project by curtailing other spending before deciding on the matter.

As per the project note, the initiative aims to build resilient health systems to deliver value­based healthcare addressing the advanced demographic and epidemiological transition in Kerala. This program will also enhance inter­sectoral collaboration to respond to emerging threats effectively

including climate change and enhancing the efficiency of the healthcare delivery systems in Kerala.

The program also aims to develop a comprehensive ecosystem to prevent and care for NCDs (non-communicable diseases), prevent and respond to emerging health threats by strengthening systems and improved climate change strategies, strengthen emergency and trauma care services by creating a network of 24x7 urgent care facilities including ambulance and trauma registry; and re­engineer health systems to address persisting challenges and new emerging issues and elderly services through local self­government engagement, strengthening human resources, scaling up digital health applications and augmenting public financing for health, according to the document.

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