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Jaipur city healthcare landscape


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The latest report by leading management consulting firm Kanvic has projected that the upcoming opening of new hospitals and the expansion of existing facilities in Jaipur will soon close the supply-demand gap for beds in the city. And with greater choice for patients, the city’s healthcare players are set to face tougher competition.

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Jaipur city healthcare landscape

  1. 1. Jaipur city healthcare landscape This note has been prepared by Kanvic Kanvic Consulting for the exclusive purpose of our Clients. The material contained herein cannot be copied, used, circulated for any other purpose. All rights reserved Kanvic Consulting Private Limited.
  2. 2. Contents A Overview of Indian Healthcare Market B Jaipur city healthcare landscape C Strong growth Closing of supply demand gap Key trends Directions for future 2
  3. 3. The Indian healthcare market has grown at 15% CAGR over last five years with the hospital segment contributing 71% to the total market size Size of healthcare market in India, USD billion Segment wise market share in India 78.6 R CAG 15% 68.4 59.5 13% 51.7 3% 45.0 13% 71% 2008 2009 2010 2011 2012 E Hospitals Insurance & Medical equipments Note: E = Estimated Source: IBEF Pharma Diagnostic 3
  4. 4. Increasing healthcare spend and growth in inpatients will further drive industry growth Revenue from outpatients and inpatients, Rs. billion Monthly per capita expenditure, Rs. CAGR CAGR 2160 95 11.50% 19.06% 57 49 44 637 146 32 55 2002 71 76 2006 2008 Urban Source: NSSO, Crisil 99 2010 Rural 10.26% 840 617 2012 2006 OPD 4.51% 2013 IPD 4
  5. 5. The low availability of hospital beds and physicians offers a big opportunity in India Hospital beds per 10,000 population Germany Physician per 10,000 population 82 China 36.9 39 36 Sri Lanka UK 4.9 30 USA 14.6 30 Brazil 24.2 23 Vietnam 27.7 22 India Source: WHO 9 17.6 12.2 6.5 5
  6. 6. The healthcare sector has attracted the attention of Private Equity in recent years PE investment in healthcare sector in India, $ Mn Healthcare sector share in total PE investment 4% 12% 10% 1146.4 • Private Equity and Venture Capital are taking interest in the healthcare industry. The share of PE investment in healthcare sector shot up to 12 percent in 2012. 526.8 429.2 2011 • Both multi speciality and single specialty hospitals are gaining the attention of PE/VC investors. 2012 Note: * 2013 figures till September 13 Source: Venture Intelligence, Kanvic research 2013* 6
  7. 7. Contents A Overview of Indian Healthcare Market B Jaipur city healthcare landscape C Strong growth Closing of supply demand gap Key trends Directions for future 7
  8. 8. Jaipur is a fast growing city with hospitals clustered around Tonk Road and JLN Marg New development Sikar Road New development Kalwar Road New development Agra Road New development Ajmer Road Major Hospitals in Jaipur New development Tonk Road Source: 8
  9. 9. Jaipur’s healthcare market has evolved over the years Evolution of healthcare market in Jaipur SMS Medical college is set up by the Government Soni hospital starts operations with 20 beds 1971 1947 S K Soni Hospital begins operations with super specialities in cardiology, cancer, nephrology and neurosurgery 2000s 1986 First private hospital Santokba Durlabhji Memorial Hospital (SDMH), run by a trust, is inaugurated Source: Kanvic research 2006 2004 Institute based hospitals are set up after privatisation of medical education in the state First public private partnership Metro hospital established. PPP between Metro Group and the Govt. of Rajasthan Fortis Escorts, the first corporate hospital in Jaipur, opens its doors to the public 2010 2007 100 bedded Tagore hospital begins its operations 2013 2012 Narayana Hrudayalaya, a leading Cardiac care hospital in India, opens in Jaipur Eternal Heart Care Center started. Nova speciality surgery also begins its operations 9
  10. 10. The Government of Rajasthan has introduced a healthcare policy to promote the healthcare industry A Eligibility • Minimum investment of Rs. 10 Crore in a Health Care Facility • Minimum investment Rs. 5 Crore in case of Nursing and Para Medical Institutes • Minimum investment Rs. 50 lakh in case of 15 bed hospitals/nursing homes situated in towns/villages B Land allotment • The project should be completed in a period of 3 years from the date of allotment • Those who have been allotted land on concessional price, shall have to keep 10% of beds reserved for BPL (Below Poverty Line) patients • Those patients will be treated free and will pay only 25% of the charges incurred on Drugs and Diagnostics • The order of Priority for land allotment is as bellow: C Tax benefits • The hospitals will have an exemption from electricity duty on captive generation as per the provisions laid down in clause 8 (iii) of Rajasthan Investment promotion policy (RIPS) 2003 for a period of 7 years • 50% exemption in stamp duty (as per clause 8(iv) of RIPS 2003) • 50% exemption in conversion charge (as per clause 8(v) of RIPS 2003) 1. Multi Super Specialty Hospitals 2. Single Super Specialty Hospitals 3. Medical colleges with Teaching Hospitals 4. Dental Colleges with General and Dental Hospitals 5. General Hospitals 6. Support units like State of Art Diagnostic Centres/Blood Banks/ Nursing and Paramedical Training Institutes Source: Government of Rajasthan 10
  11. 11. New hospitals will increase the supply of beds in the market Proposed new hospitals in Jaipur Speciality No. of beds Proposed investment, Rs. Crore Reliance Medicare Super Speciality 800 200 Bombay Hospital Multi Speciality 650 150 Max Hospital Multi Speciality NA NA International Oncology cancer Hospital Super Speciality 100 54 Apollo Hospital Super Speciality NA NA Shalby Hospital Super Speciality 300 NA - NA 300 Manipal Hospital Multi Speciality NA NA Jaipur National University’s Medical College Multi Speciality 1000 NA Hospital B M Birla Heart Research Centre Source: Press clippings, Kanvic research 11
  12. 12. The supply of beds may exceed the existing demand in the near future Demand supply situation in Jaipur, number of beds 3,150 13,005 4,377 13,149 5,622 Total Demand for beds1 Existing supply Government hospitals Note: 1 Proposed addition Future supply Private hospitals Demand for beds is based on WHO standard of 35 beds for a population of 10,000. Source: Kanvic research 12
  13. 13. Contents A Overview of Indian Healthcare Market B Jaipur city healthcare landscape C Strong growth Closing of supply demand gap Key trends Directions for future 13
  14. 14. There are key five trends in Rajasthan’s healthcare industry New 1 investments Public private 2 partnership model Awareness on 3 quality accreditation Tie up with other 4 speciality care 5 Ultra luxury hospital Key trends Jaipur is evolving from a tourist city to a medi-city 14
  15. 15. 1 Rajasthan’s healthcare industry has received significant new investments in the past few years ASG Eye Hospitals, a Rajasthan based group of super specialty eye hospitals has raised Rs. 50 crore from Sequoia Capital. The funding will be used to support expansion in central and north India. The hospital started in 2006 and has presence in 6 cities across Rajasthan. The group now plans to expand to Jharkhand, Madhya Pradesh, Uttar Pradesh, Chhattisgarh and Bihar. Private equity (PE) firm Matrix Partners India has invested around Rs 30 crore in Mewar Orthopedic Hospital, a group that runs specialised units for surgical orthopedics. Matrix will take an approximate 20% stake in the hospital chain that operates six centres across a host of cities including Udaipur and Bhilwara in Rajasthan and Ujjain in Madhya Pradesh. Pandya Hospital & Research Center has become Nova Speciality Surgery. The hospital opened its facility on the premises of the erstwhile Pandya Hospital & Research Center Jaipur. Fortis Healthcare Ltd has bought 100 beds Lifeline Hospital in Alwar, Rajasthan. Lifeline Hospital plans to expand it to a 150-bed facility in near future. The hospital will be re-named as 'Fortis-Lifeline Hospital'. Source: Press clippings, Kanvic research 15
  16. 16. 2 Government of Rajasthan has established a first-of-its-kind public private partnership hospital in Jaipur •The state’s first multi-specialty hospital on a public private partnership (PPP) basis, Metro Manas Arogya Health and General Hospital, opened in Jaipur in 2012. •The hospital has 22 specialties in the initial stage. Metro Manas Arogya Health and General Hospital 16
  17. 17. 3 A number of hospitals in Jaipur have already received NABH quality accreditation Jaipur Hospitals going for NABH accreditation Hospital Status of Application Fortis Hospital Got Accreditation Apex Hospital Got Accreditation S.K. Soni Hospital Got Accreditation Bhandari Hospital Got Accreditation Heart & General Hospital Got Accreditation SDMH In process Tagore Hospital In process BMCHRC Documents received Monilek Hospital Documents received Note: NABH is a constituent board of Quality Council of India was set up in 2005 to establish and operate accreditation programme for healthcare organisations in India. NABH has standards specific to the Indian healthcare setting, major aspects being the assurance of uniform access, assessment, care of patients and protection of patient’s rights. Source: NABH 17
  18. 18. 4 Hospitals are exploring partnership opportunities with other speciality care centres DCDC Kidney Care • DCDC is one of the most trusted institutions in Dialysis care delivery in Delhi / NCR and rapidly expanding to establish a wide network in all formats. SK Soni Hospital • S K Soni Hospital is one of the super speciality hospitals in Jaipur with 225 beds. The hospital started its operations with super specialities in cardiology, cancer, nephrology and neurosurgery. DCDC Kidney Care, north India’s biggest chain of dialysis centres, opened its first unit for Rajasthan at SK Soni Hospital, Jaipur. The modern unit consists of 15 dialysis machines with 24 hrs service facility to patients from Jaipur and adjoining towns. Source: Press clipping, Kanvic research 18
  19. 19. 5 India’s first ultra luxurious birthing centre “cocoon” launched in Jaipur •Cocoon hospital is an ultra luxurious birthing centre with seven star hospitality and high-end medical care. The hospital is equipped with all the modern pre and post natal healthcare facilities. •Cocoon provides world-class medical facilities like modular operation theatres, LDR suites, Level 3 neonatal intensive care units, fully motorised imported medical beds and examination couch, 4D ultrasound technology. 19
  20. 20. About Kanvic Kanvic is a management consulting firm helping businesses develop winning strategies, drive profitable growth and achieve operational excellence to reap long lasting rewards in fast growing Indian economy. We work with C-level executives to develop innovative solutions for business challenges of 21st century India by bringing in leading edge management thinking informed by in-depth research and sound analysis. Contact Bangalore Delhi Jaipur London Paris Ravindra Beleyur Deepak Sharma Shiv Kumar Sharma Gehan Wanduragala Vlad Flamind M: +91 94481 46963 E: M: +91 99283 77800 E: M: +91 75685 21803 E: M: +44 7825 160716 E: M: +33 7624 51907 E: 11.13