INTRODUCTIONHealthcare :The term healthcare system refers to a country‘s system of delivering services for the prevention and treatment of diseases and for the promotion of physical and mental well being.
Healthcare Industry Today the healthcare industry has emerged as one of the most challenging sectors as well as one of the largest service sector industries in India . The Indian economy over the recent past has started looking up and has now decidedly being acknowledged as likely to continue to sustain economic growth.
The Indian healthcare industry though still at the developing stage and dynamics compared to other countries has also benefited from this economic boom. A country‘s healthcare system also reflects in part of the culture and values of the society.
INDIAN SCENARIO― India offers both best and worst of Healthcare ― India is experiencing a continuous increase in life expectancy and a decline in the birth rate. The increased importance given to medical and technical education has resulted in labor force. The social and infrastructural development plays a critical role in the development of this industry.
Rapid expansion Healthcare is one of India‘s largest sectors, in terms of revenue and employment, and the sector is expanding rapidly. The sector is more than $34 billion , translates to $34 per capita, or roughly 6% of GDP. This year, India‘s healthcare sector is projected to grow to nearly $40 billion. The private sector accounts for more than 80% of total healthcare spending in India. One driver of growth in the healthcare sector is India‘s booming population
Expanding Middle Class-An opportunity By 2025, an estimated 189 million Indians will be at least 60 years of age—triple the number in 2004. The growing elderly population will place an enormous burden on India‘s healthcare infrastructure.Expanding middle class : A report by National Council for Applied Economic Researchs (NCAER) Centre for Macro Consumer Research said by 2015-16, India will be a country of 53.3 million middle class households, translating into 267 million people falling in the category.
Changing Scenario of Service Changing Scenario of Service More women are entering the workforce as well, further boosting the purchasing power of Indian households- changing composition of healthcare sector workforce. Many of these women are highly educated: the ratio of women to men who have a college degree or higher level of education is 40:60 Lifestyle diseases are faster than infectious diseases in India Result - increase in cost per treatment, wellness programs targeted at the workplace. Could help to reduce the rising incidence of lifestyle diseases
PEST Analysis…1. Political Analysis2. Economic Analysis3. Social Environment Analysis4. Technology Environment Analysis
Political Analysis The government is reducing its hold on subsidies. There are particular pressure groups which tend to have an influence on government hospitals. Relationships between neighboring countries also affect the hospital sector.
Economic Analysis Increase in income would lead to an increase in the standard of living . Thus people‘s lifestyles changes and health is better understood. Thus there is a room for specialized treatment, doctors, and hospitals. Government has made loans easily available and thus people with limited means could avail better/specialized treatment
Social Environment Analysis Medical facilities have increased since there is more awareness of healthcare among the population. Certain percentages of beds have to be kept for poor people E.g. ― in Bombay 20% of beds has to be keptreserved for poor people. Look after the needsof local poor people. ‖ Teach hygiene, sanitation among the poor masses. Safe disposal of hospitals wastes like used injection needles, waste blood etc. and taking due care of environment. Spreading awareness about various diseases through campaigns and free medical check ups.
Technological Environment Analysis Breakthrough innovation in the field of specialized equipment . Communication has managed to bridge the gap between places located at long distances. Test tube babies . Mobility of medical services Mobile phones, credit cards (for payment purposes) etc have made doctors and medical facilities easily available
Service Flower Core Product Treatment of human ills Expected ProductInfrastructure to support reasonable number of beds Operation theatres Equipments – like Cardio-respiratory supportive equipment AUGMENTED PRODUCTAmbience: Central Air-conditioning Automation equipments ( X- Ray Scanners, Printers, Photo Scanners, etc
Major Corporate Players1. The Apollo Group of Hospitals (1983-Chennai)2. Fortis Healthcare (1996)3. Max India (1985)4. Escorts (plans to set up a multi-speciality healthcare hub near Kolkata over 50 acres of land at an estimated investment of about Rs 900 crore)5. Wockhardt & Duncans Gleneagles International.
Medical tourism Medical Tourism (Medical Travel) – relating to rapidly-growing practice of traveling across international borders to obtain health care.‗‘ Over 50 countries have identified medical tourism as a national industry. ‗‘‗‘ Malaysia has gained reputation as one of the preferred locations for medical tourism and healthcare tours by virtue of its highly efficient medical staff and modern healthcare facilities. ―
SWOT AnalysisStrengths : Low cost of production. Large pool of installed capacities. Efficient technologies for large number of Generics. Large number of skilled technical man power. Increasing liberalization of govt. policies .Weakness : Fragmentation of installed capacities. Low technology level of Capital Goods of this section. Non-availability of major intermediaries for bulk drugs Very low key R&D Low share of India in World Pharmaceutical Production (1.2% of world production but having 16.1% of worlds population) Very low level of Biotechnology in India and also for New Drug Discovery Systems. Low level of strategic planning for future and also for technology forecasting.
Opportunities : Aging of the world population Growing incomes. Growing attention for health. New diagnoses and new social diseases. Spreading prophylactic approaches. New therapy approaches. Spreading use of Generic Drugs GlobalizationThreats : Containment of rising health-care cost. High Cost of discovering new products and fewer discoveries. High entry cost in newer markets. High cost of sales and marketing. Switching over form process patent to product patent.
CONCLUSIONThe Indian healthcare sector can be viewed as a glass half empty or a glass half full. The challenges the sector faces are substantial, from the need to improve physical infrastructure to the necessity of providing health insurance and ensuring the availability of trained medical personnel with the opportunities available equally.