HEALTHCARE SERVICES IN INDIA 2012: THE PATH AHEAD

Indian Economy on a Growth Path

Consistently growing GDP (%)
10 8 6 4 2 0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Indian economy in a resilient mode in terms of GDP growth Mobile connections have increased from 6 mln in March 02 to 362 mln in June 09

Growth of Healthcare Industry The Healthcare Industry has grown from USD 18.7 bln in 2000 to USD 35 bln in 2008.
40 35 30 25 20 15 10 5 0 2000 2005 2008
CAGR 9.3%

Increasing mobile penetration

No. of Mobile Connections (mn) 400 350 300 250 200 362 261 161 90 52

150
100 50 0

34 13 6 2002 2003 2004 2005 2006 2007 2008 2009

Population Growth

India is the worlds second most populous country

Significant population growth between 1970 - 2000

1,600 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Indian Population Count (mn) 1,400 1,200 1,000 800 600 400 200

With a billion plus population the need for healthcare is universal for both Urban and Rural India. With an increasing incidence of life style diseases (approx. 33 percent of the total pie) and a growing geriatric and pediatric population, there is an emphasis on the need for specialty care
AntiDerma Diabetic 6% 5% Antiinfectives 21%

-0.5%

60 yrs & above

Neuro/ CNS 6%
Gynaec 6%

6 yrs & below

Vitamins/ minerals/ Nutrients 10% Pain/ Analgesic 10%

Gastrointestinal 13%

7 - 14 yrs 15 - 59 yrs

Respiratory 11%

Cardiac 12%

Public Healthcare

There has been a significant increase in public infrastructure over the years. While in 1947 the number of hospital beds was 3.2 per 10,000, the present number of 9 per 10,000 is commendable, but still far behind that of other developing countries The governments share in the healthcare delivery market is only 20 percent.
Country

Head Beds/ 10000 141 73 57 40 32 29 18 9 National Rural Health Mission Institutes like AIIMS in Tier II cities AYUSH Rashtriya Swasthya Bima Yojana (RSBY) Medical education for OBC National Programme for Prevention and Control of Deafness (NPPCD) Other heads Total

The current NHP aims to increase the government contribution to healthcare to touch 2 percent of the GDP by the end of the five year tenure, an increase from the present contribution of 0.9 percent. Government Initiatives like NRHM, NUHM and RSBY are working towards better healthcare for the poor.

Budget FY10
INR Cr

Japan France Switzerland Australia United States of America Thailand Malaysia India
4

14,127 1,448 734

350 100 10 4,344 21,113

Private Healthcare

India has one of the highest private spending in healthcare as compared to other countries. Nearly 80% of the total spend. In India, Out of pocket spending is one of the highest, constituting 94% of the total spend in the private health industry. Extensive landscape of private players with multi & super specialty hospitals, innovative rural models, and MediCities. Increasing Private Equity investment into the sector, with an affinity towards innovative rural models and super specialty care. With Infrastructure status, 100% FDI under the automatic route, Service Tax exemption and Rural and Tier II hospitals exempt from Income Tax for 5 yrs, Private healthcare is on a high growth path.
No. of Beds

8000 7000 6000 5000 4000 3000 2000 1000 0

5

Apollo

Fortis Kolkilaben Ambani Hospital CARE Hospitals

Narayana Hrudayalaya

Dr. Trehan's MediCity

Max

Healthcare Services Associated Industries

Diagnostics & Pathology

8.0 3.0 2.5 USD bn 1.5 1.0 USD bn 2.0 6.0 4.0 2.0 0.0

Medical Equipment & Devices

0.5
0.0 2006 2008 2012

2006
-2.0

2008

2012

Medical Tourism
1.2 1.0 USD bn USD bn 0.8 0.6 0.4 0.2 0.0 2006 2008 2012 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

Private Health Insurance

2006

2008

2012

The Healthcare Industry In India: 2012

INDIAN HEALTHCARE SERVICES INDUSTRY TO REACH USD 77 BILLION BY 2012

80 70 60 Insurance Medical Tourism Hospitals Medical Equipment Diagnostics

USD Bn

50
40 30 20 10 0

Insurance Medical Equipment Medical Tourism Diagnostics Hospitals

2006 0.49 0.18 0.35 0.83 19.15

2008 1 0.4 0.5 1.2 27.4

7

2010 (P) 1.9 4.8 0.7 1.7 32.9

2012 (P) 3 6.7 1 2.5 54.5

Growth Drivers

Economic Growth

Availability of Insurance

Regulatory Support

GROWTH
Available Skilled Manpower Changing Population Demographics

Multiplicity of Disease Profile

Challenges & Recommendations

Challenges
Low Government funding & lack of efficient execution of schemes & initiatives Shortfall in Health care infrastructure and Workforce Inadequate accessibility to affordable quality services Financial constraints with respect to infrastructural needs

Recommendations
Step-up in Government funding and initiatives via a special task force Implementation of REITs and increased use of Private-Private Partnership Models Addressing geographic accessibility through PPP and harnessing local resources

Creating a Global Source of Skill

Efficient dissemination of healthcare related information Establishment of Industry Body with adequate representation from all stakeholders

THANK YOU

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