Healthcare: Market Size & Growth <ul><li>Healthcare emerged as one of the largest service sectors in India </li></ul><ul><...
Investment destination <ul><li>Limited government investment </li></ul><ul><li>Needs US$ 32 to US$ 50 billion to reach hal...
Trends pointing towards robust future growth <ul><li>Growing incomes, literacy and awareness  bode well for the Indian hea...
Key Opportunity Segments Hospital Services Medical Tourism Pathology Services Medical Devices  Tele Medicine Health Insura...
Medical Tourism – India, the new heaven for health & holiday <ul><li>About 1,80,000 patients arrived in 2004 from across t...
High quality low cost treatment- attracting foreign patients <ul><li>Overburdened health infrastructure and high costs in ...
Hospital Services – Attracting  private investors <ul><li>The market for hospital services in India is estimated at over U...
Foreign investors viewing for Indian market pie Singapore based Parkway Group Healthcare PTE Ltd aggressively penetrating ...
Medical Devices – Promising growth <ul><li>India Market expected to touch US$ 1.7 billion  by 2010, against US$ 1.2 billio...
Healthcare BPO – USD 4.5 billion opportunity by 2008 <ul><li>Healthcare business processes outsourced to India can result ...
Key players Integreo Inc.,  an Atlanta based healthcare BPO, plans to invest US$ 10 million in its facility at Hyderabad, ...
Pathology Services – Brisk growth WestBridge Capital Partners  picked up a 26% stake in Dr. Lal’s Pathlabs for US$ 9.7 mil...
Tele Medicine –  Technology breaking barriers <ul><li>80% of the medical facilities are concentrated in the urban area whi...
Teleimaging – Opportunities abound <ul><li>Indian health Imaging market expected to get double from existing US$350 Millio...
Health Insurance – Gaining penetration <ul><li>Health insurance premium set to touch US$ 533.3 mn at the end of 2005-06 as...
Policy Initiatives <ul><li>National Accreditation Board to provide accreditation to all public and private hospitals  to e...
The India Brand Equity Foundation is a public-private partnership between the Ministry of Commerce & Industry, Government ...
Disclaimer This publication has been prepared by India Brand Equity Foundation (“IBEF”). All rights reserved. All copyrigh...
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Health care - Project Nabojagoron

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Health care - Project Nabojagoron

  1. 2. Healthcare: Market Size & Growth <ul><li>Healthcare emerged as one of the largest service sectors in India </li></ul><ul><li>In 2004, national healthcare spending equaled 5.2% of GDP, or about US$ 34.9 bn </li></ul><ul><li>Healthcare spending in India is expected to rise by 12% per annum through 2005-09 (in value terms) </li></ul><ul><li>Expected to scale up to about 5.5% of GDP, or US$ 60.9 billion, by 2009 </li></ul><ul><li>Other estimates suggest that by 2012, healthcare spending could contribute 8% of GDP and employ around 9 million people </li></ul>Source: Economist Intelligence Unit Indian Healthcare Industry Projections 162 No of medical colleges No of Nurses No of Beds Hospitals No of Doctors 7,37,000 8,70,161 15,097 5,03,900 India's Health Indicators
  2. 3. Investment destination <ul><li>Limited government investment </li></ul><ul><li>Needs US$ 32 to US$ 50 billion to reach half of China’s current bed per 10,000 population over 10 years </li></ul><ul><li>Government likely to meet only 15-20 per cent of the demand </li></ul><ul><li>10 -15 per cent commitment from International donors </li></ul><ul><li>Shortfall of nearly 70 %, could be funded by private companies </li></ul>Incentives for Private Investment <ul><li>Unmet demand for health care facilities </li></ul><ul><li>Changing demographics </li></ul><ul><li>Increasing private spending on healthcare </li></ul><ul><li>Readily available intellectual pool </li></ul>Incentive for International Investors
  3. 4. Trends pointing towards robust future growth <ul><li>Growing incomes, literacy and awareness bode well for the Indian healthcare services market </li></ul><ul><li>Proportion of households in the low -income group has declined </li></ul><ul><li>Rising income expanding rich and middle income group </li></ul><ul><li>Shift in disease profiles from infectious to lifestyle-related diseases are expected to raise expenditures </li></ul><ul><li>In the inpatient market, the share of infectious diseases is expected to decline from 19 per cent in 2004 to 16 percent in 2008. </li></ul>
  4. 5. Key Opportunity Segments Hospital Services Medical Tourism Pathology Services Medical Devices Tele Medicine Health Insurance
  5. 6. Medical Tourism – India, the new heaven for health & holiday <ul><li>About 1,80,000 patients arrived in 2004 from across the globe for medical treatment </li></ul><ul><li>Medical tourism market in India estimated at US$ 333 million in 2004, grew by about 25 % </li></ul><ul><li>Predicted to become a US$ 2 billion-a-year business opportunity by 2012 </li></ul><ul><li>India seeing a surge of patients from developed countries as well as from Africa , South and West Asia </li></ul><ul><li>Cost of comparable treatment in India is on average 1/8 th to 1/5 th of those in the West </li></ul><ul><li>Quality of Indian healthcare delivery second to none </li></ul>
  6. 7. High quality low cost treatment- attracting foreign patients <ul><li>Overburdened health infrastructure and high costs in the west, a key driver for looking at India </li></ul><ul><li>Around 50 mn citizens are uninsured in US </li></ul><ul><li>India offers highly cost-competitive and technologically advanced treatments options </li></ul>Key Areas Dentistry Eye care Preventive health checks Orthopedics surgery Cosmetics Cardiology Surgerical Specialty Cosmetic surgery Dental surgery Vision correction Organ transplants Hip replacement Cardiac bypass surgery
  7. 8. Hospital Services – Attracting private investors <ul><li>The market for hospital services in India is estimated at over US$ 4 billion. </li></ul><ul><li>Private players account for almost 78 % of the healthcare delivery market. </li></ul><ul><li>Increasing spending power of 250-300 strong middle class driving growth opportunities for corporate healthcare providers </li></ul><ul><li>An estimated 95% of new hospital beds have come up in the private sector </li></ul><ul><li>Reportedly at least 20 international players vying to have a pie of the Indian hospital market </li></ul><ul><li>Several JVs (Parkway) or individual projects (Columbia Asia) underway </li></ul>
  8. 9. Foreign investors viewing for Indian market pie Singapore based Parkway Group Healthcare PTE Ltd aggressively penetrating Indian market. It has entered into joint ventures with Apollo group to build Apollo Gleneagles, a 325-bed multi-specialty hospital at a cost of US$ 29mn and with Asian Hearth Institute and Research center to set up specialized center for medical excellence in Mumbai Parkway Group, Singapore Pacific Healthcare Holding, one of Singapore's leading healthcare provider, is coming up with Pacific Medical Centre, an international medical centre in Hyderabad in a JV with Vitae healthcare Pvt. Ltd. Two more medical facilities one for women and children's and other for stem cell bank are also coming up Pacific Healthcare Holding, Singapore Malaysia based Columbia Asia has set up its first 75 bed hospital in Hebbal, Bangalore through the FDI route. The group has two more projects in the pipeline, a 150 bed tertiary care hospitals and another of 75-100 bed in Bangalore Columbia Asia, Malaysia
  9. 10. Medical Devices – Promising growth <ul><li>India Market expected to touch US$ 1.7 billion by 2010, against US$ 1.2 billion in 2005 </li></ul><ul><li>The demand for hi-tech medical devices in India growing between 12 -15% annually </li></ul><ul><li>Hi-tech product constitutes close to 80% of overall market </li></ul><ul><li>Higher involvement of foreign players in hi-tech devices, which account for US$ 770 mn </li></ul><ul><li>90 % of demand is being met by imports from countries like USA, Japan and Germany. </li></ul><ul><li>Changing disease profile and clinical needs, and growth of medical tourism are all expected to drive the potential for medical devices </li></ul><ul><li>Some foreign companies conduct first 500 surgeries in India after approval of a medical device or surgical treatment by US FDA </li></ul>German electrical engineering major Siemens plans to source medical equipment from the Goa facility in India for the regulated markets. The company has recently completed 40 per cent capacity expansion at its Goa unit and is in the process of receiving regulatory approval from the US FDA and European authorities.
  10. 11. Healthcare BPO – USD 4.5 billion opportunity by 2008 <ul><li>Healthcare business processes outsourced to India can result in cost savings of 20-30% </li></ul><ul><li>Estimated opportunity for India is US$ 4.5 bn by 2008, employing about 200,000 people. </li></ul><ul><li>Apart from regular business processes, companies are further involved in converting existing data to HIPPA format </li></ul>Healthcare BPOs services spectrum Administration Human Resource Customer Care Commercial Documentation Data Capture
  11. 12. Key players Integreo Inc., an Atlanta based healthcare BPO, plans to invest US$ 10 million in its facility at Hyderabad, a 60,000 sq. feet facility and it expects to increase its headcount from 600 employees currently, to 3,000 people by January, 2008. Spheris, a US-based medical transcription company, has invested about US$ 2. 2 million on its facility at Coimbatore, which covers an area of 35,000 sq feet. It intends to ramp up its headcount to 3,000 from the existing 2,000 in India. Indian Healthcare BPOs players Hinduja TMT Manipal Education and Medical Group Apollo Group Foreign Healthcare BPOs players HealthScribe Integreo Inc
  12. 13. Pathology Services – Brisk growth WestBridge Capital Partners picked up a 26% stake in Dr. Lal’s Pathlabs for US$ 9.7 million. Dr Lal PathLabs plans to build South Asia’s biggest laboratory in Delhi besides expanding in the country. Apollo Hospitals Enterprise Ltd has entered into a joint venture with Amcare Labs, an affiliate of Johns Hopkins International of the US, to set up a diagnostic laboratory in Hyderabad. <ul><li>US$ 500 mn domestic pathology industry has been growing over the last 5 years at an estimated CAGR of 20% </li></ul><ul><li>Currently comprises almost 2.5 per cent of the overall healthcare delivery market </li></ul><ul><li>With 40,000 independent pathology laboratories in the country, the industry is highly competitive and price driven </li></ul><ul><li>Presently, the lab testing market is largely serviced by small unorganized players and hospitals </li></ul><ul><li>Molecular diagnostic and pharmacogenomic testing to be future growth drivers </li></ul><ul><li>By 2010, two million patients are expected for clinical trials in India; translating into 20 million tests </li></ul><ul><li>Outsourcing of pathology tests by foreign hospital becoming a huge opportunity. From UK alone its 450 million pounds or US$ 800 mn </li></ul><ul><li>Preventive healthcare and health insurance will drive domestic growth </li></ul>
  13. 14. Tele Medicine – Technology breaking barriers <ul><li>80% of the medical facilities are concentrated in the urban area while 73% of the population resides in the rural area </li></ul><ul><li>Exponential growth in Information and Communication Technology and plummeting telecom cost making India highly competitive </li></ul><ul><li>Government and public sector initiatives lend credence to telemedicine opportunity </li></ul><ul><li>Corporate sector taking lead in telemedicine </li></ul>Leading Telemedicine Players Asian Heart Hospitals Apollo Hospitls Max Healthcare Fortis Hospitals Wockhardt Hospitals
  14. 15. Teleimaging – Opportunities abound <ul><li>Indian health Imaging market expected to get double from existing US$350 Million by 2010 </li></ul><ul><li>Radiologists are in short supply world over while demand growing </li></ul><ul><li>50% of the 6000 hospitals in US do not have the technology for teleradiology </li></ul>Teleradiology Solutions, first Indian company to provide teleradiology services in US is market leader in the imaging market serving 50 hospitals in US with an accuracy rate of 99.8 % against the accepted us standard of 96-97 percent
  15. 16. Health Insurance – Gaining penetration <ul><li>Health insurance premium set to touch US$ 533.3 mn at the end of 2005-06 as against US$ 385 mn in 2004-05 </li></ul><ul><li>Industry analysts believe the figure could go up to US$ 777.8 mn by 2007 </li></ul><ul><li>The number of lives covered under health plans has improved from 4-5 million about six years back to over 12 million today. </li></ul><ul><li>Increasing awareness and large-scale group insurance policies have pushed growth in the health insurance segment </li></ul><ul><li>Government policy spurs private initiatives e.g. IRDA has increased the FDI limit from 26% to 51% </li></ul><ul><li>Leading global players including Aetna, Brooke Shield, and Blue Cross are waiting to make a foray into the market </li></ul>Iffco Tokio has made an entry into the health insurance market. Chubb is another entrant into India. It has formed an alliance with HDFC for offering health insurance. Miliman is the latest multinational to make a foray into the Indian health insurance sector.
  16. 17. Policy Initiatives <ul><li>National Accreditation Board to provide accreditation to all public and private hospitals to ensure quality </li></ul><ul><li>Clinical Establishment Act by 2006 to make sure quality healthcare services </li></ul><ul><li>Government to issues “Medical Visas” to Overseas patients within a month or less time to promote Medical Tourism </li></ul><ul><li>100 % FDI through FIPB route </li></ul><ul><li>Amending Drug & Cosmetic Rules to Include medical devices </li></ul><ul><li>National Rural Mission Launched in 2005 to provide effective healthcare to rural population </li></ul><ul><li>Government institutionalizing a mechanism of Public Private Partnership In healthcare </li></ul><ul><li>Federal Drugs Authority </li></ul><ul><li>Indian Medical Devices Regulatory Authority </li></ul><ul><li>Expanding Public Procurement Systems of drugs, devices and vaccines </li></ul><ul><li>National Institute for Health Information and Disease Surveillance </li></ul><ul><li>National Commission for Quality Assurance </li></ul><ul><li>National Institute for Health Research </li></ul><ul><li>Commission for Excellence in Medical and Health Education </li></ul>National Commission recommendations for formation or reorganization of Institutions
  17. 18. The India Brand Equity Foundation is a public-private partnership between the Ministry of Commerce & Industry, Government of India and the Confederation of Indian Industry. The Foundation’s primary objective is to build positive economic perceptions of India globally India Brand Equity Foundation c/o Confederation of Indian Industry 249-F Sector 18, Udyog Vihar Phase IV Gurgaon 122015, Haryana, INDIA Tel +91 124 401 4087, 4060 - 67 Fax +91 124 401 3873 Email j.bhuyan@ciionline.org Web www.ibef.org
  18. 19. Disclaimer This publication has been prepared by India Brand Equity Foundation (“IBEF”). All rights reserved. All copyright in this publication and related works are owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication), modified or in any manner communicated to any third party except with the written approval of IBEF. This publication is for information purposes only. While due care has been taken during the compilation of this publication to ensure that the information is accurate to the best of knowledge and belief of IBEF, the content is not to be construed in any manner whatsoever as a substitute for professional advice. IBEF neither recommends nor endorses any specific products or services that may have been mentioned in this publication and nor does it assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this publication. IBEF shall in no way, be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this publication.

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