Healthcare Industry India Overview and City Comparison

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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.

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Healthcare Industry India Overview and City Comparison

  1. 1. HelloHow you doing?
  2. 2. let’s talks aboutHealthcare Delivery Industryin India
  3. 3. Healthcare Deliveryis a fancy term for provision of healthcare
  4. 4. Healthcare Deliveryis a fancy term for provision of healthcare that includes: Hospitals/ Pharmacies Clinics Labs
  5. 5. Healthcare Deliveryis a fancy term for provision of healthcare that includes: Hospitals/ Pharmacies Clinics Labs
  6. 6. OverviewCONTENTS City-wise comparison Closing titles References
  7. 7. OVERVIEW
  8. 8. Healthcare industry revenues one of the in USD bnFASTESTgrowing sectors 79 50 45.5 41.4 37.6 34.2 22.8 2005 2006 2007 2008 2009 2010 2012e
  9. 9. Contribution of91% 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. 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. 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… TechnologyInvestments
  12. 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. 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. GovernmentGrowingDemand Technology Investments
  14. 14. Annual per capita spending on healthcare* (USD)but we spend like MISERS! USA Brazil China *by the government and private sector combined
  15. 15. India’s health expenditureand although we are spending per capita (USD) 60MORE & MORE 54.2 on healthcare every year… 50 40 30 22.1 20 01 02 03 04 05 06 07 08 09 10
  16. 16. Number of physicians per 10,000 population 27.7 …in key indicators weLAG 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. 17. Spending on healthcare which creates a huge as a percentage of GDPOPPORTUNITY 7.7 for private players 5.5Year after year, the government spendingfalls way short of requirement. This opens Govtthe doors for private investors. As the graph 3.3 Spendingreveals, private players spend more than 1.9 Private 4.8twice the amount spent by the government, 1.7 1.3 Spendingevery year. 2.7 3 2.7 2.8 2.9
  18. 18. CITY-WISE COMPARISONS
  19. 19. CITY-WISE COMPARISONSI have compared data from four Indian metros: Ahmedabad (AHD), Chennai(CHN), Kolkata (KOL) and Pune (PUN). The following type of hospitals havenot been considered:1. Non-allopathic hospitals2. Consultation clinics3. Non-ophthalmology clinics with no bedsData on cities acquired from RedSeer Consulting Pvt. Ltd., a research andconsulting firm in Bangalore.
  20. 20. Number of beds per 1,000 population 4.74 4.49 4.06urban India is doing 2.29 Global Avg 3.0JUST 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. 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. 22. Hospitals offering various facilities (%) but there is huge AHD CHN KOL PUNVARIATION 79 83 78 across metros 67 66 63 60 53 53 46 47 34 31 32 24 16
  23. 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 RupeesThe size of the bubbles represents the total 2500 200-500number of beds present in a city in hospitals 500+in a certain bed range. The position of the 2000bubbles represents the average maximumbed price for hospitals in that range. 1500 1000 500 0
  24. 24. Percentage of hospitals offering various specialties but there is hugeVARIATION 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. 25. CLOSING TITLES
  26. 26. CLOSING TITLESHealthcare industry is one of the fastest growing sectors in India.However, the gap between urban and rural India is vast. The biggestprivate sector investments in the coming years are bound to happen inTier-II and Tier-III cities.
  27. 27. DISCLAIMERThis is an independent study performed by Sanket Baxi.Data have been taken from various sources, including reports andwhitepapers by consulting firms (see references on next slide). Thesefirms are not affiliated with me, nor have any of them commissioned thisstudy.The sources of data in this presentation may not necessarily subscribe toany/all of the views in this presentation or agree with any/all of the datamentioned and the inferences drawn from them.
  28. 28. ReferencesWebsiteswww.ibef.orgwww.indianhealthcare.inwww.irda.gov.inhttp://economictimes.indiatimes.com/Starting_Up/Vaatsalyas_hub-and-spoke_model_delivers_affordable_healthcare/articleshow/3169942.cmsVarious mediaReports and WhitepapersHospital Sector Overview (whitepaper) – RedSeer ConsultingWorld Health Statistics 2012 – WHOIndian Healthcare Industry: Sustainable Growth - HarneediEmerging Trends in Health Care, 2011 - KPMGImproving Healthcare Delivery in India, 2009 - by Abhijit Banerjee and Esther Duflo
  29. 29. GET IN TOUCH!Email: vezance@gmail.comTwitter: @vezance

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