This deck provides an overview of the healthcare delivery sector in India and a comparison between four cities: Ahmedabad, Chennai, Kolkata, Pune. IT covers the size of the sector, the growth rate, the drivers and various healthcare indicators.

1. Hello
How you doing?

2. let’s talks about
Healthcare Delivery Industry
in India

3. Healthcare Delivery
is a fancy term for provision of healthcare

4. Healthcare Delivery
is a fancy term for provision of healthcare that includes:
Hospitals/
Pharmacies Clinics Labs

5. Healthcare Delivery
is a fancy term for provision of healthcare that includes:
Hospitals/
Pharmacies Clinics Labs

6. Overview
CONTENTS City-wise comparison
Closing titles
References

7. OVERVIEW

8. Healthcare industry revenues
one of the in USD bn
FASTEST
growing sectors
79
50
45.5
41.4
37.6
34.2
22.8
2005 2006 2007 2008 2009 2010 2012e

9. Contribution of
91% moolah raked in by various segments (%)
DELIVERY 13 3
9 4 100
71
Hospitals Pharmaceuticals Diagnostics Medical supplies Medical Total
and equipment insurance
Healthcare Delivery

10. An industry driven by…
better technology that promotes minimally invasive surgeries and ambulatory service
centers, both of which are encouraging demand while simultaneously resulting in better
supply. Better technology also promotes telemedicine, which the government and MCIT
are pushing fore the rural population.
Technology

11. An industry driven by…
high investments. In 2010, the healthcare sector saw PE investments of USD 320.4bn.
There were 57 Mergers & Acquisitions worth USD 6.2bn in the same year. One of the
reasons for increasing investments in the sector is government encouragement…
Technology
Investments

12. An industry driven by…
…in the form of reduced customs duty on life saving equipment, tax benefit for large
hospitals, and allowance of 100% FDI in hospitals. The government is also increasing its
own spending and plans to spend 2.5% of GDP in the 12th 5-year plan.
Government
Technology
Investments

13. An industry driven by…
Growing demand is a result of various factors, including better healthcare awareness,
increasing lifestyle related diseases, rising levels of disposable incomes and medical tourism.
Government
Growing
Demand Technology
Investments

14. Annual per capita spending on
healthcare* (USD)
but we spend like
MISERS! USA
Brazil
China
*by the government and
private sector combined

15. India’s health expenditure
and although we are spending per capita (USD)
60
MORE & MORE 54.2
on healthcare every year… 50
40
30
22.1
20
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10

16. Number of physicians per 10,000 population
27.7
…in key indicators we
LAG WOEFULLY
17.1
14.2
behind developed nations 7.8
6.5
2.1
2.1
Number of beds per 1000 population
5.6
3.9
3
1.7
1.2 0.9

17. Spending on healthcare
which creates a huge as a percentage of GDP
OPPORTUNITY 7.7
for private players
5.5
Year after year, the government spending
falls way short of requirement. This opens Govt
the doors for private investors. As the graph 3.3 Spending
reveals, private players spend more than 1.9 Private
4.8
twice the amount spent by the government, 1.7 1.3 Spending
every year.
2.7 3 2.7 2.8 2.9

18. CITY-WISE COMPARISONS

19. CITY-WISE COMPARISONS
I have compared data from four Indian metros: Ahmedabad (AHD), Chennai
(CHN), Kolkata (KOL) and Pune (PUN). The following type of hospitals have
not been considered:
1. Non-allopathic hospitals
2. Consultation clinics
3. Non-ophthalmology clinics with no beds
Data on cities acquired from RedSeer Consulting Pvt. Ltd., a research and
consulting firm in Bangalore.

20. Number of beds per 1,000 population
4.74 4.49
4.06
urban India is doing 2.29
Global Avg
3.0
JUST DANDY Indian Avg
overall 0.9
Number of OTs per 10,000 population
1.68
1.41
1.22
0.83
Global Avg
0.62
Indian sub-continent Avg
0.13

21. Distribution of types of hospitals
but there is huge 63% 28% 19% 41%
VARIATION
across metros 59%
60%
Small Single Specialty
39% Small Multi Specialty
Large Single Specialty
Large Multi Specialty
31%
3%
2% 18% 1%
1% 11% 9%
5%

22. Hospitals offering various facilities (%)
but there is huge AHD CHN KOL PUN
VARIATION 79
83
78
across metros 67 66
63
60
53 53
46 47
34
31 32
24
16

23. Average maximum bed prices by city and bed range
but there is huge 4500
VARIATION 4000
across metros 3500
3000
Total number
of beds
0-100
100-200
Rupees
The size of the bubbles represents the total 2500
200-500
number of beds present in a city in hospitals 500+
in a certain bed range. The position of the 2000
bubbles represents the average maximum
bed price for hospitals in that range. 1500
1000
500
0

24. Percentage of hospitals
offering various specialties
but there is huge
VARIATION
AHD CHN KOL PUN
across metros 71
75
65
76
66
61
58 58 57
51
49
46
42
40 39
35
30 31
20 20

25. CLOSING TITLES

26. CLOSING TITLES
Healthcare industry is one of the fastest growing sectors in India.
However, the gap between urban and rural India is vast. The biggest
private sector investments in the coming years are bound to happen in
Tier-II and Tier-III cities.

27. DISCLAIMER
This is an independent study performed by Sanket Baxi.
Data have been taken from various sources, including reports and
whitepapers by consulting firms (see references on next slide). These
firms are not affiliated with me, nor have any of them commissioned this
study.
The sources of data in this presentation may not necessarily subscribe to
any/all of the views in this presentation or agree with any/all of the data
mentioned and the inferences drawn from them.

28. References
Websites
www.ibef.org
www.indianhealthcare.in
www.irda.gov.in
http://economictimes.indiatimes.com/Starting_Up/Vaatsalyas_hub-and-
spoke_model_delivers_affordable_healthcare/articleshow/3169942.cms
Various media
Reports and Whitepapers
Hospital Sector Overview (whitepaper) – RedSeer Consulting
World Health Statistics 2012 – WHO
Indian Healthcare Industry: Sustainable Growth - Harneedi
Emerging Trends in Health Care, 2011 - KPMG
Improving Healthcare Delivery in India, 2009 - by Abhijit Banerjee and Esther Duflo

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