20100605 health care_research report_may2010


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20100605 health care_research report_may2010

  1. 1. Relevant Convenient Cost Efficient -914400-1134110<br />WWW.365BUSINESSDAYS.COM<br />Report on Healthcare in India-May 2010May 2010This report is only for information purposes and not to be basis for any decision making. 365businessdays will not be responsible either directly or indirectly for any loss or damage arising out of use of information given in this report. While we have taken utmost care and professional diligence to provide correct information, yet information given in this is not warranted to be error free and 365businessdays does not give any guarantee about correctness of data. 365businessdays does not intend to approve or recommend services or products of any service provider mentioned in this report. <br />Health of healthcare industry in India<br />Emperor Ashok was probably the first king in world history, who tried to give health care to all citizens. Despite such headway, India has not achieved too much in terms of providing good quality healthcare for its nationals. Although by developing irrigation channels, India has been successful in eradicating famines but malnutrition, high infant mortality rate and diseases like Malaria & Tuberculosis are still haunting the nation.<br />Today, India has 16% of the world’s population, 18% of the world’s mortality and 20% of the world’s morbidity but our public expenditure on health is still 1% of GDP- amongst the lowest in the world. With government spending less than 1% of GDP on healthcare, basic healthcare facilities and health insurance are a distant dream for majority of the population.<br />More than 80% of the healthcare expenditure goes out from the pocket of patients, and according to World Bank statistics of 2002, 40% of the hospitalized patients have to take a loan or sell of asset, pushing 2.2% of population below poverty line every year. One instance of hospitalization is estimated to cost around 58% of annual per capita expenditure, making a strong case for providing affordable healthcare in India. The high quality or super specialty healthcare is out of reach of more than 90% of the patients.<br />Despite distressing facts such as India being only one of the four countries worldwide yet to eradicate polio, healthcare in India is growing rapidly ( although the distribution is a bit lop sided, with urban population area getting more than 70% of this growth). Healthcare in India is one of the biggest sectors in terms of revenue and people employed. An ever increasing population is putting strain on it, stretching it and giving a reason to investors to invest in healthcare. Propelled by large investments from corporate, FDI and Govt. also, healthcare is poised to grow at a fast pace for next 15-20 years. Nearly 28% of the population in India lives in cities and this is projected to go up to 41% by 2020, which will subsequently result in increase in demand for better quality healthcare as well as increase in number of patients suffering from lifestyle diseases.<br />Hospital and medical devices Industry <br />The Indian hospital industry is growing at an annual rate of 14%. The Healthcare market in India is estimated to be around USD 55-60 billion, with services accounting for more than 60% of the market size. (KPMG) It is estimated to grow by 2012 to over USD 70 billion at 13% CAGR. The private sector accounts for nearly 80% of the healthcare market, while public expenditure accounts for 20% (Cygnus India). According to recent estimates by Ernst & Young, there are only 4.48 hospitals, 6.16 dispensaries and 308 beds for every 100000 of India’s urban population. According to the WHO report, India needs to add 80,000 hospital beds each year for the next five years to meet the demands of its growing population. In rural areas, the situation is worse, with 0.77 hospitals, 1.37 dispensaries, 3.2 Public Health Centers and just 44 beds for every 100,000 people. Hence this is a huge opportunity, which can be addressed with proper planning and execution. Medical tourism has been growing at 25-30% annually. According to Confederation of Indian Industries, India has the potential to attract one million medical tourists each year, which could contribute $5 billion to the economy. To conclude, healthcare in India is at an inflexion point with under-penetration and extreme fragmentation. Hence growth of these segments is inevitable, and so is the penetration of organized sector across services. However, there are certain structural and regulatory issues that will continue to sober the same (licensing norms for retail, lack of a health insurance market, availability of talent to name a few), and hence players would need to adopt focused strategies in order to seek profitable expansion across segments.<br />Of the many challenges, a critical one has been the lack of talent/facilities for building medical devices that meet global standards. But the scenario is quickly changing. Today we have global healthcare device makers like GE, Siemens and Phillips looking eastward to fuel growth. Phillips has already made a few acquisitions including Alpha X ray and Medtronics.<br />To read more, click here<br />To read more such reports, log on to: www.365businessdays.com<br />Business Advisory & Support Services<br />www.365businessdays.com<br />Qcaliber - India Services Pvt. Ltd.<br />2nd Floor, D 41 Sector 59, NOIDA - 201301, India.<br />Tel: +91-120-4087000<br />Fax: +91-120-4087001<br />Email: Researchteam@365businessdays.com<br />365BusinessDays offers management consulting and business advisory services in the form of business query resolution based on deep industry and functional expertise, delivered through a convenient and cost-effective online business model. Our service aids entrepreneurs, business owners, and senior management in critical decision-making process when faced with complex business challenges, thereby helping them select the most relevant business solution from amongst multiple choices potentially available, supported by our knowledge and experience in Business Planning, Sales Enhancement, Cost Reduction, and Operational Management. <br />WWW.365BUSINESSDAYS.COM<br />