Indian.Healthcare.IT.Market

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Indian.Healthcare.IT.Market

  1. 1. Fastest growing market in APAC Indian Healthcare IT Market Concept Note Dr AC Mullick, MS CEO, SHS Pvt Ltd www.seedhealthcare.com
  2. 2. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  3. 3. Healthcare delivery market 2008 2013 The healthcare 63 delivery market in India is projected to have remarkable and 35 sustained growth over the next decade, due to marked shortage of capacity and huge Healthcare (Billion USD) unfulfilled demand Source: AHEL-CRISIL independent equity research, 22 Sep’ 2009
  4. 4. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  5. 5. Physicians per 10,000 population USA Germany China Egypt India has much Thailand Sri Lanka India fewer physicians 27 per capita than 35 Egypt or China. 14 24 Those that are 3 there are mostly 6 6 concentrated in urban areas 0 10 20 30 40 Source: WHO world health statistics, 2010
  6. 6. Nurses per 10,000 population USA Germany China Egypt Egypt has more Thailand Sri Lanka India than twice as many 98 nurses per capita 80 than India. We lag 10 34 behind Sri Lanka too 14 17 13 0 50 100 150 Source: WHO world health statistics, 2010
  7. 7. Hospital beds per 10,000 population USA Germany China Egypt SriLanka, Egypt, Thailand Sri Lanka India Thailand and 31 China, all have more 83 beds per 10,000 30 21 population than 22 India. 31 9 India will need to add 1.75 million 0 20 40 60 80 100 beds in the next 15 years Source: WHO world health statistics, 2010
  8. 8. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  9. 9. Total expenditure as % of GDP India lags behind USA Germany China Egypt Thailand Sri Lanka India Egypt and China in allocation of 15.7 funding for 10.4 4.3 healthcare as 6.3 percentage of GDP. 3.7 That is slated to 4.2 4.1 grow over the next decade to around 0 5 10 15 20 6.5% Source: WHO world health statistics, 2010
  10. 10. Per capita total spending in USD (PPP adjusted) Indian per capita USA Germany China Egypt Thailand Sri Lanka India spend on healthcare is less 7285 than half of the 3588 233 other billion plus 310 population 286 country, China. It is 179 109 miniscule compared to what the 0 2000 4000 6000 8000 Americans and Germans spend Source: WHO world health statistics, 2010
  11. 11. Per capita Govt spending in USD (PPP adjusted) Indian per capita USA Germany China Egypt Thailand Sri Lanka India Govt spend is actually 1/3 of 3317 China and Sri 2758 104 Lanka, ¼ of 118 Egypt, and 1/7 of 209 Thailand 85 29 0 1000 2000 3000 4000 Source: WHO world health statistics, 2010
  12. 12. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  13. 13. Infant mortality per 1000 live births Only Pakistan has a USA Germany China Egypt Thailand Sri Lanka India worse infant mortality rate than 7 ours in this region 4 18 (72). Sri Lanka is 20 four times 13 better, and 13 52 Germany is 13 times better on this 0 20 40 60 key state of health indicator Source: WHO world health statistics, 2010
  14. 14. Maternal mortality per 1000 live births This is the most USA Germany China Egypt Thailand Sri Lanka India shameful health indicator of this 11 country. 130,000 4 45 women die in child 130 birth every year in 110 this country, equal 58 450 to 676 fully occupied airbus 0 100 200 300 400 500 320s crashing/year Source: WHO world health statistics, 2010
  15. 15. Tuberculosis prevalence per 100,000 population India has some of the USA Germany China Egypt highest infectious diseases Thailand Sri Lanka India prevalence in the world All of these data 3 and the lack of 2 88 infrastructure can 24 be only addressed 160 73 by increasing 190 funding which is now happening via 0 50 100 150 200 NHRM and the Source: WHO world health statistics, 2010 private sector
  16. 16. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  17. 17. Market size and projections 2010 2020 2010 2020 800 738 8000 6750 600 6000 400 4000 243 200 2000 860 0 0 Healthcare (Thousand Crores) Healthcare IT (Crores) *Source: Adapted from Zinnov study on IT in Indian healthcare sector, Sep’ 2010
  18. 18. India has the fastest growing healthcare IT market in Asia, with an expected growth rate of 22%, followed closely by China & Vietnam. In fact, the Indian healthcare technology market is poised to be worth more than US$ 254 million by 2012. *Source: Springboard Research
  19. 19. Growth drivers: demand supply gap Beds/Nurses/Doctors per 10,000 population USA Germany China Growing demand Egypt Thailand Sri Lanka for better health India infrastructure due to increasing population, and perceived adverse economic effects of disease burden on productive sections 0 50 100 150 of the population Source: WHO world health statistics, 2010
  20. 20. Growth drivers: private sector Private Expense as % of total expense India Brazil China Russia India has the maximum private 73.8 expenditure on healthcare amongst 58.4 all the BRICS 55.3 economies. Sectoral 35.8 growth is being funded and driven by 0 20 40 60 80 the private sector Source: WHO world health statistics, 2010
  21. 21. Growth drivers: government policy 1983 - 2000 2000 onwards • Subsidy worth Rs 650 • Benefits of Section 10 billion provided to extended to financial institutions providing long stimulate private term capital to hospitals investments, including • Benefit of Section 80-1B to – Custom duty exemptions hospital >100 beds in rural on equipment imports areas – Tax and infrastructure • Reduction in customs and development related import duties on medical exemptions equipments *Source: Ernst and Young Research
  22. 22. Healthcare IT application market Application Market Realized Revenue 2010: 285 Cr 2010: <100 Cr 2020: 2250 Cr Opportunities 75 companies @ .25-1 Cr/yr 20 companies @ 1-5 Cr/yr Top 5 companies showing poor top line 5 companies @ 5-15 Cr/yr and bottom line growth

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