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Fastest growing market in APAC




       Indian Healthcare IT
             Market


Concept Note
                              Dr AC Mullick, MS
                                   CEO, SHS Pvt Ltd
                            www.seedhealthcare.com
Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities
Healthcare delivery market
                                   2008     2013
The healthcare                                      63
delivery market in
India is projected to
have remarkable and                  35
sustained growth
over the next
decade, due to
marked shortage of
capacity and huge                Healthcare (Billion USD)
unfulfilled demand
                        Source: AHEL-CRISIL independent equity
                        research, 22 Sep’ 2009
Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities
Physicians per 10,000 population


                         USA            Germany     China         Egypt
India has much           Thailand       Sri Lanka   India

fewer physicians                                            27
per capita than                                                      35
Egypt or China.                           14
                                                      24
Those that are           3
there are mostly               6
                               6
concentrated in
urban areas        0               10          20            30           40


                        Source: WHO world health statistics, 2010
Nurses per 10,000 population


                             USA          Germany     China        Egypt
Egypt has more               Thailand     Sri Lanka   India

than twice as many                                          98
nurses per capita                                     80
than India. We lag           10
                                     34
behind Sri Lanka too          14
                               17
                              13


                       0                  50               100             150


                            Source: WHO world health statistics, 2010
Hospital beds per 10,000 population


                             USA             Germany     China     Egypt
SriLanka, Egypt,             Thailand        Sri Lanka   India

Thailand and                                 31
China, all have more                                                    83
beds per 10,000                              30
                                        21
population than                         22
India.                                       31
                              9
India will need to
add 1.75 million       0           20             40     60      80          100
beds in the next 15
years                       Source: WHO world health statistics, 2010
Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities
Total expenditure as % of GDP


India lags behind          USA           Germany      China        Egypt
                           Thailand      Sri Lanka    India
Egypt and China in
allocation of                                                      15.7
funding for                                          10.4
                                   4.3
healthcare as                            6.3
percentage of GDP.               3.7
That is slated to                 4.2
                                  4.1
grow over the next
decade to around     0             5            10            15           20
6.5%
                          Source: WHO world health statistics, 2010
Per capita total spending in USD (PPP adjusted)


Indian per capita             USA          Germany       China          Egypt
                              Thailand     Sri Lanka     India
spend on
healthcare is less                                                          7285
than half of the                                  3588
                             233
other billion plus           310
population                   286
country, China. It is       179
                            109
miniscule compared
to what the             0           2000         4000            6000       8000
Americans and
Germans spend                Source: WHO world health statistics, 2010
Per capita Govt spending in USD (PPP adjusted)


Indian per capita         USA          Germany      China          Egypt
                          Thailand     Sri Lanka    India
Govt spend is
actually 1/3 of                                                    3317
China and Sri                                               2758
                         104
Lanka, ¼ of              118
Egypt, and 1/7 of         209
Thailand                 85
                        29


                    0           1000         2000           3000       4000


                         Source: WHO world health statistics, 2010
Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities
Infant mortality per 1000 live births


Only Pakistan has a          USA          Germany     China        Egypt
                             Thailand     Sri Lanka   India
worse infant
mortality rate than              7
ours in this region          4
                                          18
(72). Sri Lanka is                         20
four times                           13
better, and                          13
                                                                        52
Germany is 13
times better on this   0                  20               40                60
key state of health
indicator                   Source: WHO world health statistics, 2010
Maternal mortality per 1000 live births


This is the most            USA            Germany     China      Egypt
                            Thailand       Sri Lanka   India
shameful health
indicator of this          11
country. 130,000          4
                                45
women die in child                       130
birth every year in                    110
this country, equal             58
                                                                       450
to 676 fully
occupied airbus       0              100       200     300     400        500
320s crashing/year
                           Source: WHO world health statistics, 2010
Tuberculosis prevalence per 100,000 population


India has some of the                 USA          Germany       China         Egypt
highest infectious diseases           Thailand     Sri Lanka     India
prevalence in the world
All of these data                 3
and the lack of                   2
                                                           88
infrastructure can                       24
be only addressed                                                              160
                                                      73
by increasing                                                                          190
funding which is
now happening via             0               50           100           150           200
NHRM and the
                                      Source: WHO world health statistics, 2010
private sector
Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities
Market size and projections

                  2010      2020                                      2010      2020
800                             738                8000
                                                                                    6750
600                                                6000

400                                                4000
                   243
200                                                2000
                                                                        860
 0                                                     0
           Healthcare (Thousand Crores)                             Healthcare IT (Crores)




  *Source: Adapted from Zinnov study on IT in Indian healthcare sector, Sep’ 2010
India has the fastest growing healthcare IT
market in Asia, with an expected growth rate of
  22%, followed closely by China & Vietnam. In
fact, the Indian healthcare technology market is
 poised to be worth more than US$ 254 million
                     by 2012.


 *Source: Springboard Research
Growth drivers: demand supply gap
                       Beds/Nurses/Doctors per 10,000 population

                             USA          Germany      China
Growing demand               Egypt        Thailand     Sri Lanka
for better health            India
infrastructure due
to increasing
population, and
perceived adverse
economic effects of
disease burden on
productive sections      0              50            100          150
of the population     Source: WHO world health statistics, 2010
Growth drivers: private sector
                           Private Expense as % of total expense

                                    India        Brazil     China     Russia
India has the
maximum private
                                                                               73.8
expenditure on
healthcare amongst                                                   58.4

all the BRICS                                                       55.3
economies. Sectoral                                       35.8
growth is being
funded and driven by
                                0           20            40        60         80
the private sector
                       Source: WHO world health statistics, 2010
Growth drivers: government policy
                1983 - 2000                  2000 onwards
 • Subsidy worth Rs 650             • Benefits of Section 10
   billion provided to                extended to financial
                                      institutions providing long
   stimulate private
                                      term capital to hospitals
   investments, including
                                    • Benefit of Section 80-1B to
       – Custom duty exemptions       hospital >100 beds in rural
         on equipment imports         areas
       – Tax and infrastructure     • Reduction in customs and
         development related          import duties on medical
         exemptions                   equipments


*Source: Ernst and Young Research
Healthcare IT application market

 Application Market
                               Realized Revenue
      2010: 285 Cr
                                 2010: <100 Cr
     2020: 2250 Cr

                   Opportunities

75 companies @ .25-1 Cr/yr
20 companies @ 1-5 Cr/yr
                                Top 5 companies
                              showing poor top line
 5 companies @ 5-15 Cr/yr
                             and bottom line growth

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Indian.Healthcare.IT.Market

  • 1. Fastest growing market in APAC Indian Healthcare IT Market Concept Note Dr AC Mullick, MS CEO, SHS Pvt Ltd www.seedhealthcare.com
  • 2. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  • 3. Healthcare delivery market 2008 2013 The healthcare 63 delivery market in India is projected to have remarkable and 35 sustained growth over the next decade, due to marked shortage of capacity and huge Healthcare (Billion USD) unfulfilled demand Source: AHEL-CRISIL independent equity research, 22 Sep’ 2009
  • 4. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  • 5. Physicians per 10,000 population USA Germany China Egypt India has much Thailand Sri Lanka India fewer physicians 27 per capita than 35 Egypt or China. 14 24 Those that are 3 there are mostly 6 6 concentrated in urban areas 0 10 20 30 40 Source: WHO world health statistics, 2010
  • 6. Nurses per 10,000 population USA Germany China Egypt Egypt has more Thailand Sri Lanka India than twice as many 98 nurses per capita 80 than India. We lag 10 34 behind Sri Lanka too 14 17 13 0 50 100 150 Source: WHO world health statistics, 2010
  • 7. Hospital beds per 10,000 population USA Germany China Egypt SriLanka, Egypt, Thailand Sri Lanka India Thailand and 31 China, all have more 83 beds per 10,000 30 21 population than 22 India. 31 9 India will need to add 1.75 million 0 20 40 60 80 100 beds in the next 15 years Source: WHO world health statistics, 2010
  • 8. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  • 9. Total expenditure as % of GDP India lags behind USA Germany China Egypt Thailand Sri Lanka India Egypt and China in allocation of 15.7 funding for 10.4 4.3 healthcare as 6.3 percentage of GDP. 3.7 That is slated to 4.2 4.1 grow over the next decade to around 0 5 10 15 20 6.5% Source: WHO world health statistics, 2010
  • 10. Per capita total spending in USD (PPP adjusted) Indian per capita USA Germany China Egypt Thailand Sri Lanka India spend on healthcare is less 7285 than half of the 3588 233 other billion plus 310 population 286 country, China. It is 179 109 miniscule compared to what the 0 2000 4000 6000 8000 Americans and Germans spend Source: WHO world health statistics, 2010
  • 11. Per capita Govt spending in USD (PPP adjusted) Indian per capita USA Germany China Egypt Thailand Sri Lanka India Govt spend is actually 1/3 of 3317 China and Sri 2758 104 Lanka, ¼ of 118 Egypt, and 1/7 of 209 Thailand 85 29 0 1000 2000 3000 4000 Source: WHO world health statistics, 2010
  • 12. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  • 13. Infant mortality per 1000 live births Only Pakistan has a USA Germany China Egypt Thailand Sri Lanka India worse infant mortality rate than 7 ours in this region 4 18 (72). Sri Lanka is 20 four times 13 better, and 13 52 Germany is 13 times better on this 0 20 40 60 key state of health indicator Source: WHO world health statistics, 2010
  • 14. Maternal mortality per 1000 live births This is the most USA Germany China Egypt Thailand Sri Lanka India shameful health indicator of this 11 country. 130,000 4 45 women die in child 130 birth every year in 110 this country, equal 58 450 to 676 fully occupied airbus 0 100 200 300 400 500 320s crashing/year Source: WHO world health statistics, 2010
  • 15. Tuberculosis prevalence per 100,000 population India has some of the USA Germany China Egypt highest infectious diseases Thailand Sri Lanka India prevalence in the world All of these data 3 and the lack of 2 88 infrastructure can 24 be only addressed 160 73 by increasing 190 funding which is now happening via 0 50 100 150 200 NHRM and the Source: WHO world health statistics, 2010 private sector
  • 16. Market overview Healthcare infrastructure Healthcare investments Healthcare indicators Opportunities
  • 17. Market size and projections 2010 2020 2010 2020 800 738 8000 6750 600 6000 400 4000 243 200 2000 860 0 0 Healthcare (Thousand Crores) Healthcare IT (Crores) *Source: Adapted from Zinnov study on IT in Indian healthcare sector, Sep’ 2010
  • 18. India has the fastest growing healthcare IT market in Asia, with an expected growth rate of 22%, followed closely by China & Vietnam. In fact, the Indian healthcare technology market is poised to be worth more than US$ 254 million by 2012. *Source: Springboard Research
  • 19. Growth drivers: demand supply gap Beds/Nurses/Doctors per 10,000 population USA Germany China Growing demand Egypt Thailand Sri Lanka for better health India infrastructure due to increasing population, and perceived adverse economic effects of disease burden on productive sections 0 50 100 150 of the population Source: WHO world health statistics, 2010
  • 20. Growth drivers: private sector Private Expense as % of total expense India Brazil China Russia India has the maximum private 73.8 expenditure on healthcare amongst 58.4 all the BRICS 55.3 economies. Sectoral 35.8 growth is being funded and driven by 0 20 40 60 80 the private sector Source: WHO world health statistics, 2010
  • 21. Growth drivers: government policy 1983 - 2000 2000 onwards • Subsidy worth Rs 650 • Benefits of Section 10 billion provided to extended to financial institutions providing long stimulate private term capital to hospitals investments, including • Benefit of Section 80-1B to – Custom duty exemptions hospital >100 beds in rural on equipment imports areas – Tax and infrastructure • Reduction in customs and development related import duties on medical exemptions equipments *Source: Ernst and Young Research
  • 22. Healthcare IT application market Application Market Realized Revenue 2010: 285 Cr 2010: <100 Cr 2020: 2250 Cr Opportunities 75 companies @ .25-1 Cr/yr 20 companies @ 1-5 Cr/yr Top 5 companies showing poor top line 5 companies @ 5-15 Cr/yr and bottom line growth