• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Fortis
 

Fortis

on

  • 2,708 views

Virtual Trade Mission: Exploring Opportunities in India

Virtual Trade Mission: Exploring Opportunities in India

May 7, 2009

Statistics

Views

Total Views
2,708
Views on SlideShare
2,706
Embed Views
2

Actions

Likes
3
Downloads
170
Comments
0

2 Embeds 2

http://www.slideshare.net 1
http://www.health.medicbd.com 1

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Fortis Fortis Presentation Transcript

    • The Indian Healthcare Landscape Jim Dockins, FACHE Regional Director Fortis Healthcare Limited 731-256-0585 (US) [email_address]
    •  
    • Some Facts India
    • Hard Facts
      • According to May 2007 data, the per capita income of India was Rs 29,382 ($588) a year or Rs 2,448.5 ($49) a month
      • A third of the global poor now reside in India
      • The World Bank estimates that 456 million Indians (42% of the total Indian population) now live under the global poverty line of $1.25 per day (PPP)
      • The Planning Commission of India has estimated that 27.5% of the population was living below the poverty line in 2004–2005
      • Criterion: monthly per capita consumption expenditure below Rs. 356.35 for rural areas and Rs. 538.60 for urban areas
    • Two Faces of Indian Healthcare
    • Healthcare Industry in India
      • 3 Types of healthcare providers
        • Private (Out of Pocket)
        • Public
        • Public Industry (BHEL, Railways, ONGC)
    • Healthcare Industry in India
      • India is host to 17% of world’s population, 20% of all maternal deaths, 23% of child deaths, 26% of childhood vaccine preventable deaths, 30% of TB& 68% of leprosy, 20% of entire disease burden, and 8% of Doctors
      • Average per head spending on healthcare in India = US $94 - $100
      • United States = $5,711 per citizen
      • Switzerland = $3,445 per citizen
      • Norway = $3,083
      • South Korea = $931
      • Netherlands = $2909
    • Healthcare Industry in India
      • Healthcare is not a part of the concurrent list of constitution of India, every state formulates its own policy (28 states and 7 union territories)
      • Only few national programs are run by the Indian Government – NMEP, NACO etc
      • Healthcare Industry expected to reach from US $ 35 billion to 75 billion by 2012, and 150 billion by 2017, bulk of it will be by Private Sector (KSA Technopak)
    • Burden of Disease
      • Communicable, Maternal, Perinatal, and Nutritional diseases contribute 46% of disease burden
      • India accounts for
        • 20% of world’s maternal deaths
        • 40 million diabetics – expected to rise to 70 million by 2025 – every fifth diabetic in the world will be an Indian
        • Huge burden of cardiac diseases – 38% Indians have high cholesterol levels, making 2 out of 5 Indians susceptible to heart disease
    • Other diseases Heart diseases Sense organs MuscoSkeletal Acute Infections Other diseases Acute Infections Heart diseases MuscoSkeletal Sense organs Acute Infections Other Disease Heart Disease Cancer Accidents / Injuries Acute Infections Other Disease Heart Disease Cancer Accidents / Injuries 2001 2012 2012 2001 USD 19 Bn USD 10 Bn Outpatient Market size ( Private spend on Healthcare Delivery) Inpatient Market size ( Private spend on Healthcare Delivery) 46% 54% … ..life style diseases will become dominant USD 6 Bn USD 18 Bn
    • Progression Graph - India
    • Government Initiatives
      • Number of subcentres: 137,311
      • PHC: 22,842
      • CHC: 3,043
      • Government (Public) Medical Colleges & Hospitals – 138
      • Total number of Government Hospitals: 9,976
              • Total number of Beds: 482,522
        • IMR of 56/1000 (double of Brazil and China)
        • MMR of 44/10000 (4 and 10 times of Brazil and China)
      Indicators India Brazil China USA Beds/1000 population .86 2.6 2.2 3.2 Bed occupancy ratio (%) 72% 60-80% 72% 69.3% Average length of stay (number of days) 10 4-8 10.6 6.7
      • Private sector has 38% beds (FICCI & E&Y, 2008), but
      • caters to approximately 80% of Indian population
      • Only 1-2% of Private sector beds are in hospitals of bed
      • size > 200 beds
      Additional Requirements 2008 2018 2028 Additional Beds required 1.1 million 3.1 million 2 million Beds/1000 population 0.7 – 1.7 4 5 Additional Floor Space @ 800 sq feet/bed 880 million sq feet 2480 1600 Additional Land Area (FSI 1:1) 20,000 acres 56,400 36,400
    • 7% decline 42% growth 50% growth Number per 1000 population Average rate of population growth in India is 2% annually
    • Targets (2025)
      • Hospital Bed density = 2/1000 population
      • Physicians per 1000 population = 1
      • Nurses per 1000 population = 2.2
      • Fastest growing Free Market Economy
      • Fourth-Largest economy in the world in terms of Purchasing power parity
      • Higher services mix, Increasing Urbanization, growing working population and a nascent consumer credit cycle are supporting India’s growth story
      Mar - 95 Mar - 02 Mar – 07 E 0.4% 3.4% 5.0% 5.0% 14.0% Private Health Insurance Social Insurance Employer’s spend Community Insurance Total Favorable shift in Demographics Exciting phase of Economic development Insurance coverage Rapid growth in per capita GDP(PPP) Upper Middle & High(> $ 1500 pa) Upper Middle & Middle($500- $ 1500 pa) Low(<$500 pa) Percent of population, 2001 … reason for optimism
    • Increasing Private Expenditure
      • Public health expenditure has remained stagnant between 0.9 – 1.2% of GDP (of a total of 5.1%)
      • Public health expenditure in developed countries like USA is in the range of 8-10% of GDP
      • Private expenditure on HC has increased from 60% in 1990-91 to 80% in 2000-01
    • Private Sector - Phases Phase 1 1947-83 Phase 2 1983-2000 Phase 3 Post 2000
      • Public sector focus
      • None to be denied care, regardless of ability to pay
      • State Responsibility to provide healthcare
      • Private sector encouraged to provide healthcare services
      • Access to public funded CHC expanded
      • State’s role redefined to that of a financer of health services from that of a provider
      • Liberalization of Insurance sector for health financing
    • Out-of-pocket expenditure on HC in India 4 times higher than the world average
    • Health Insurance
      • Health Insurance industry is worth US $1025 million, and is expected to grow at 30% annually till 2015 to US $5600 million, by which time insurance coverage would have increased to 10% from the present 2%
      • Insurance coverage in India was 12% in 2007 as compared to the USA where it is more than 85%
        • In 2000 – 20% of all plans sold were retail insurance policies, while the remaining were group insurance policies
        • By 2008, the ratio has changed to 45% group policies and 55% retail insurance policies
    • Health Insurance
      • Insurance companies need to focus on Below Poverty Level segments
      • Rashtriya Swasthya Bima Yojana – launched by the government in 20008
        • Covers 300 million people living below the poverty line – each member of such families will get a maximum health insurance coverage of Rs 30,000 ($600) per annum along with additional incidental benefits
        • Insured family pays roughly ½ a Euro annually
      • Rajiv arogya sri health scheme
      • Chiranjivi Project
      • Rogi Kalyan Samitis
    • Potential to become the Global Healthcare destination Overview Cost & Waiting Time Advantage
      • Globally the Med Value Travel market is already estimated to cross $40 Bn.
        • Thailand, South Africa, Malaysia, Cuba, Cost Rica are some of the emerging destinations
      • In India the Medical tourism market is estimated at approx USD 0.33 Bn.
        • Various studies project the market in India to grow to USD 2.7 Bn by end of the decade.
      Key drivers for the growth
      • Quality Healthcare at fraction of the cost
      • Availability of Skilled Doctors & Hospitals
      • Good reputation of Indian Doctors
      Issues
      • Poor Infrastructure of the country
      • Low information levels on good Quality Hospitals
      • Lack of accreditation of Hospitals
      * These are average Costs not the actual cost which would be incurred …… . a $3 Bn opportunity in Med Value travel by 2012
    • Need for a Nano model for Healthcare Price = 1470 Euros
    • Way Forward
      • Prevention of disease and promotion of healthy lifestyle
      • Increase health insurance coverage
      • PPP
      • Government to become facilitator rather than provider for tertiary care and higher secondary care
      • Infrastructure status to healthcare
      • Unshackle medical education
    • Prepared by Fortis Healthcare Ltd.
    • Thanks
      • Credits:
      • FICCI Ernst & Young 2008
      • WHO Statistics
      • Assocham Study
      • Government Healthcare Statistics