Hospital Market - India - Sample


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The hospital industry accounts for half the healthcare sector’s revenues and is estimated to be worth USD 25 bn in 2008. The dismal performance by the Indian government in providing healthcare infrastructure has created tremendous opportunity for the private sector. The huge pent up demand for quality healthcare and increase in healthcare spending in the long-term are fundamentally strong drivers in this market.

The report begins with an overview on the industry including market size, growth, and key segments. An analysis of drivers explains factors contributing to the huge potential based on healthcare consumption, increasing instances of lifestyle-related diseases, medical tourism, and growing health insurance. The key challenges identified include significant capital requirements and a shortage of medical professionals. Major private players in the industry are also identified as well as new domestic and international entrants in the market.

The future outlook covers the nature of private equity investment and buyouts by large hospital chains, emergence of “health cities”, telemedicine initiatives, and finally the supply-demand situation in key metropolitan cities in 2011.

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Hospital Market - India - Sample

  1. 1. Hospital Market – India February 2009
  2. 2. Executive Summary SAMPLE <ul><ul><li>Hospital industry accounts for ~x% of healthcare sector revenues </li></ul></ul><ul><ul><li>Estimated to be worth USD XX bn in 2008 </li></ul></ul><ul><ul><li>Forecast to reach USD XX bn by 2010 growing at y% annually </li></ul></ul>Market Drivers & Challenges Competition <ul><ul><li>Private sector dominates with x% market share, led by groups like ABC, EFG and XYZ </li></ul></ul><ul><ul><li>New entrants include domestic firms like AA, BB, CC and DD </li></ul></ul><ul><ul><li>Foreign entrants exploring the market for partnerships, acquisitions and greenfield projects </li></ul></ul>Future Outlook <ul><ul><li>Favourable policies on FDI and taxations will increase foreign participation </li></ul></ul><ul><ul><li>Private equity investing significantly; investment set to increase, especially in regional hospitals </li></ul></ul><ul><ul><li>Large hospital groups making strategic acquisitions but future opportunities may be limited </li></ul></ul><ul><ul><li>Evolving concept of “health cities”, which have scale and provide a host of satellite services </li></ul></ul><ul><ul><li>Emergence of telemedicine for rural areas with participation from private sector and government </li></ul></ul><ul><ul><li>Despite increase in number of beds, supply constraints will remain in top cities </li></ul></ul><ul><ul><li>Drivers: </li></ul></ul><ul><ul><li>Poor public healthcare infrastructure </li></ul></ul><ul><ul><li>Increasing spend on healthcare services </li></ul></ul><ul><ul><li>Increase in lifestyle-related diseases </li></ul></ul><ul><ul><li>Medical tourism </li></ul></ul><ul><ul><li>Nascent but growing medical insurance </li></ul></ul><ul><ul><li>Challenges: </li></ul></ul><ul><ul><li>High start-up cost and capital expenditure </li></ul></ul><ul><ul><li>Shortage of medical professionals </li></ul></ul>
  3. 3. <ul><li>Market Overview </li></ul><ul><li>Drivers & Challenges </li></ul><ul><li>Competition </li></ul><ul><li>Future Outlook </li></ul>
  4. 4. Indian Hospital Industry accounts for half of the healthcare sector's revenues and growth is estimated at y% annually <ul><li>Hospitals are a major component of the Indian Healthcare industry contributing to x% of industry revenues </li></ul><ul><li>Estimated to be worth USD XX bn in 2008 </li></ul><ul><li>Growing at y% p.a. </li></ul><ul><li>Expected to reach USD XX bn by 2010 </li></ul><ul><li>Fragmented with a large number of independent, privately run hospital and healthcare centres </li></ul><ul><li>Demand for healthcare far exceeds supply due to dismal performance by the government </li></ul><ul><li>A huge shortage of beds is a major driver for investment in a growing industry </li></ul><ul><ul><li>Specialty hospitals in particular are expected to grow faster than overall industry due to rise in heart diseases and cancer </li></ul></ul>SAMPLE Overview Market Size and Growth Source: 2007 X 2008 W Y 2009 Z 2010 a% 2006 V USD bn Hospital y% Pharma z% Diagnostics w% Insurance & Medical Equipment x%
  5. 5. Drivers & Challenges Increasing penetration of medical insurance Rapid growth of India as a destination for medical tourism Mounting instances of lifestyle diseases requiring hospitalization Growing demand for quality care and increasing ability to pay Dismal government performance in providing healthcare infrastructure Drivers Shortage of medical professionals High start-up cost and capital expenditure Challenges
  6. 6. Private players dominate the hospital market and with more entrants and investments, this dominance is likely to continue <ul><li>Hospital industry is dominated by the private sector with x% market share </li></ul><ul><li>Hospital industry in India is extremely fragmented due to the large number of nursing homes and small- to mid-sized hospitals </li></ul><ul><li>Large private players are leading industry growth </li></ul><ul><li>New players are also entering the market and competition is limited due to the large untapped potential of the market </li></ul>SAMPLE Competition Source: Private Sector x% Public Sector y% <ul><li>ABC </li></ul><ul><li>EFG </li></ul><ul><li>XYZ </li></ul><ul><li>AA, USA </li></ul><ul><li>BB, Dubai </li></ul><ul><li>CC, Singapore </li></ul><ul><li>DD, USA </li></ul><ul><li>EE, USA </li></ul>Domestic International New Market Players Public vs. Private sector share
  7. 7. Hospital industry in India has a bright future and will see significant investments from foreign firms, private equity and domestic players <ul><li>Government policies on FDI and tax are encouraging foreign companies to enter the market </li></ul>` Future Outlook Private equity firms are investing significantly in hospitals, both large corporate chains and standalone regional hospitals Telemedicine is emerging as a feasible option for public and private sector facilities to provide basic medical care to rural areas Major hospital chains are investing in “health cities”, which have scale and provide a host of satellite services Large hospital chains use acquisitions that offer growth at a lower cost but future opportunities may be limited Despite increase in number of beds with significant contribution by top four private groups, supply constraints will remain in top cities
  8. 8. Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The Hospital Market report is a part of Research on India’s Healthcare Industry Series. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. Natasha Mehta, CFA Phone: +65 8448 0449 E-Mail: [email_address] Gagan Uppal Phone: +91 98364 71499 E-Mail: [email_address] Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on