CONTENTS

INTRODUCTION HISTORY PROVIDERS AND PROFESSIONALS KEY SEGMENTS RELATED SECTORS PRIVATE SECTOR PUBLIC SECTOR HEALTHCARE INSURANCE SECTOR HEALTHCARE IT SECTOR MEDICAL TOURISM MARKET DRIVERS SERVICES ASSOCIATED WITH HEALTHCARE INDUSTRY GROWTH DRIVERS SIZE OF THE INDUSTRY TOP LEADING COMPANIES RESEARCH AND DEVELOPMENT INDIA-CHAGING SCENARIO CURRENT TRENDS SWOT ANALYSIS FUTURE AND CHALLENGES

INTRODUCTION
The health care industry, or health profession, treats patients who are injured, sick, disabled, or otherwise physically or mentally infirm, and maintains general health in populations and communities through the promotion of healthy behaviors and prevention of disease. For purposes of Finance and Management, the healthcare industry is typically divided into several groups and sectors.
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HISTORY

In between the 1950's and 1980's the Health care facilities and personnel increased substantially, but gradually due to the fast population growth, the number of licensed medical practitioners per 10,000 individuals had fallen in the 1980's to 3 per 10,000 from the 1981 level of 4 per 10,000. There were approximately ten hospital beds per 10,000 individuals in 1991. Primary health centers are majorly the cornerstone of the rural health care system.

In the year 1991-2000, India constituted about 22,400 primary health centers, 11200 hospitals, and 27,400 dispensaries. Such facilities were the part of a health care system which solve more difficult cases into urban hospitals while attempting to provide routine medical care to the vast majority in the countryside. Primary health centers and subcenters would majorly rely on trained paramedics to meet most of their needs.

If wealth is lost, nothing is lost if health is lost, something is lost

Providers and Professionals

Providers
A health care provider is an institution or person that provides health care services in a system way to individuals, families or communities. It includes thousands of hospitals, clinics and other types of facilities .

Providers and Professionals

Professionals
To deliver the Health care facilities Professionals are required. Professionals are health care workers, which include physicians, nurses, and other health professionals, as well as community-based health workers.

Key Segments in Healthcare

Pharmaceutical US$10 billion growing at 12% Hospitals/Nursing Homes $12 billion growing at 20% Medical Equipment $2 billion, growing at 15% Clinical Lab Diagnostics US$2 billion growing at 30% Imaging Diagnostics US$1 billion growing at 30% Other Services (includes Training & Education; Aesthetics & Weight loss; Retail Pharmacy; etc. US$2 billion growing at 40%

Related sectors of health care industry

The healthcare industry includes medical care providers, physicians, specialist clinics, nursing homes, hospitals, medical diagnostic centers and pathology laboratories. In terms of revenue and employment, healthcare is one of Indias largest service-sector industries. During the 1990s, Indian healthcare grew at a compound annual rate of 16%. Today the total value of the sector is more than $34 billion. This translates to $34 per capita, or roughly 6% of GDP. By 2012, Indias healthcare sector is projected to grow to nearly $40 billion.

Healthcare is one of Indias largest service sector industries.

In 90S
Indian health care grew At 16%

BY 2011

Total value of sector

$34 billion, this translates to 6% of GDP

BY 2012

HEALTHCARE SECTOR IS PROJECTED TO GROW

$40 billion

PRIVATE SECTORS
The private sector is part of the economy which is owned and controll by private individuals or businesses. Example: APOLLO

PUBLIC SECTORS
Indian healthcare industry operates in both of the private and public sectors. The public sectors are healthcare system consists of facilities run by the central and state governments. The facilities are provided freely or at subsidized rates to lower income families in rural and urban areas. Eg.. AIIMS DELHI. SAFDARJUNG HOSPITAL

CONT
Yojana (In the last two-and-a-half years there are more than 50 lakh women who have been brought under the Janani Suraksha JSY) for good institutional deliveries.

HEALTH INSURANCE SECTOR

Less than 15%of population is covered through pre paid insurance scheme-this is very low. Medical claim schemes has less than 3.5 million members. 3.4%population is covered through ESI schemes 5% population is covered by employer schemes.

CONT..
5% population is covered through community insurance schemes. 85% population pays out of pocket, known as private spending. Slow entry of Health insurance companies, due to regulatory issues and market dynamics

HEALTHCARE IT SECTOR
Hospitals and other healthcare business are realizing that it can be great to increase efficiencies. IT companies are offering wide ranging solution. Indian IT market is poised to be US$250 million by 2012.

MEDICAL TOURISM
High Quality Medical facilities- Appolo; Fortis ,Max, Escorts,Hinduja are some of the best facilities comparable with any good international facility. Indian doctors are perhaps amongst the best doctors in the in the world NRI doctors recognized as amongst best in adopted countries. Cost advantage first world treatment at third world costs. Indian nurses are now in demand worldwide.

Market Drivers of Health Care Sector:

Rising Health awareness Shift to lifestyle related diseases Increasing government expenditure on health care sector Health insurance sector is also on the rise Private sector companies are growing fast in terms of owning Managing hospitals Growth in medical tourism Cost effective surgical services. According to report, the cost of surgery in India is just about 10% of that in USA

Healthcare Services Associated Industries

3.0

Diagnostics & Pathology

8.0 6.0 USD bn 4.0 2.0 0.0

Medical Equipment & Devices

2.5 USD bn
2.0

1.5
1.0

0.5
0.0 2006 2008 2012 2006 -2.0 2008 2012

Medical Tourism
1.2 1.0 0.8 0.6 0.4 0.2 0.0 2006 2008 2012

Private Health Insurance

3.5
3.0 2.5 USD bn 2.0 1.5 1.0 0.5 0.0 2006 2008 2012

20

USD bn

INDIAN HEALTHCARE SERVICES INDUSTRY TO REACH USD 77 BILLION BY 2012

80
70 60 50 USD Bn 40 30 20 10 0 Insurance Medical Tourism Hospitals Medical Equipment Diagnostics

2006 0.49 0.18 0.35 0.83 19.15

2008 1 0.4 0.5 1.2 27.4

2010 (P) 1.9 4.8 0.7 1.7 32.9

2012 (P) 3 6.7 1 2.5 54.5

Insurance Medical Equipment Medical Tourism Diagnostics Hospitals

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Growth Drivers
Economic Growth Availability of Insurance Regulatory Support

GROWTH
Available Skilled Manpower Changing Population Demographics

Multiplicity of Disease Profile

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SIZE OF THE INDUSTARY

Indian healthcare industry comprises of hospitals and allied sectors which is projected to grow 23 % per annum to touch US$ 77 billion by 2012 and according to the current estimated size of US$ 35 billion. The Industry has registered a growth of 9.3 % between 2000-2009, as compared to the sectoral growth rate of emerging economies such as China, Brazil and Mexico. There would be increase in number of public and private healthcare facilities which are expected to propel demand for the industry, accounting for another US$ 6.7 billion.

TOP LEADING COMPANIES

Private players have made significant investments in setting up of the private hospitals in cities like Mumbai, New Delhi, Chennai and Hyderabad. There is emergence of latest medical technology and have created a competitive environment. The government's share in the healthcare delivery Industry is 20 % while 80 % is in the private sector. The Emergence of corporate hospitals has led to increased professionalism in medical practices and use of hospital management tools. Apollo Group Fortis Max`

Autonomous Institutions conducting Research and Development:

Indian Council of Medical Research (ICMR) Indian Medical Association (IMA) Central Drug Research Institute (CDRI)

GOVERNMENT INITIATIVES
National Rural Health Mission (NRHM) has been launched in the year 2005 by the Government. The main aim is to provide quality healthcare for all and there would be an increase in the expenditure on healthcare from 0.9 % of GDP to 2-3 % of GDP by 2012. According to Union Budget 2010-11 there is an increased allocation for Ministry of Health and Family Welfare from US$ 4.2 billion in 2009-10 to US$ 4.8 billion in 2010-11.

INDIA IN THE NEW KNOWLEDGE ECONOMY

The Changing Scenario

Indian Healthcare : The Changing Scenario

US US
Heart Surgery Bone Marrow Transplant Liver Transplant Knee Replacement Cosmetic Surgery PROCEDURE THAILAND THAILAND

INDIA 6,000 26,000

UK

40,000 2,50,000

7,500 -------

23,000 1,50,000

3,00,000
20,000 20,000

------8,000 3,500

69,000
6,000 2,000
COST (US$)

2,00,000
12,000 10,000

Trends in Healthcare Industry in India

According to recent studies conducted, the customer's (patient) aspirations are fast changing. Customers are growing more aware of their health needs, demand quick response, less waiting times, and above all - demand nearness of the healthcare unit to them.

Facts about the health care industry trends

The cost related to health care was seen to rise in the 90s. Americans not possessing any health care coverage or any kind of health insurance attained the 42 million mark. It has been anticipated that the elderly sick people will impose considerable stress on the health care sector of US. The total number of different health care programs and different health care insurance coverages are likely to increase in the coming years. There has been an escalation in the medical plans from 42.5 million in the year 2006. The health care industry trends also show that it is likely to attain 70.2 million in the year 2025.

CONTD
The health care industry trends also indicate that the expenses for preventive measures is negligible as compared to the amount spent on treating chronic diseases which accounts for 70% of the fund used for health care. Trends suggest that there are very less Americans (around 23%) who make an effort to prevent any lifestyle diseases by consuming the optimum level of vegetable and fruits.

Health care industry trends suggests changes in the following spheres

The companies manufacturing medicines provide health care plans More stress is to be laid on prevention than treatments Sufficient supply of the essential health care products should be made available to the consumers to meet the demand of the health care industry.

Cont
An additional 750,000 beds will be required (from 1.5 million today to 2.25 million in 2012), of which 150,000 beds need to be tertiary beds. The number of doctors and nurses enrolled in medical colleges and nursing schools will have to triple over the next 10 years. Additional 520,000 students physicians will be required by 2012. The bulk of the investment will need to be made by private providers Total Healthcare Market in India could increase from US$35 billion today to US$60 billion by 2012.

SWOT ANALYSIS

The high level self boosts your bottom line. exam that

A swot analysis is useful hospitals, medical groups individuals in private practice.

for and

It helps focus your marketing in areas that harbor the strongest benefits.

INTERNAL: Strengths & Weakness

STRENGTHS:
New & innovative service. Cost advantages. Cultural connections. Extraordinary reputation.

WEAKNESS:
Damaged reputation. Gaps in service areas. Lagging in technology. Management &staff problems. Poor location or geographic barriers.

OPPORTUNITIES:
In addition to new trends, what other external opportunities exists and how can we best exploit. Opportunities could include:

new competitor. new technology. changes in population profile or need. new market segment that offer improve profit.

THREATS:
It can include anything that stands in the way of your success. What can be done to mitigate each threat? Can a threat become an opportunity? Threats could include: Competitor has an innovative product. Adverse changes in regulations. Economic shifts. Loss of key staff or associates. Shifts in market demand.

Vision
Healthcare Solutions' vision is to be the leading health services intermediary, recognized for our integrated health cost management solutions for the workers' compensation and auto liability/PIP markets.

HEALTHCARE.THE SUNRISE INDUSTRY

Physicians, Nurses, Medical Technicians and Other Scientific Occupations will Become Growth Industries to Rival the IT Sector within the Next Decade
- India Vision 2020 Report

Mission
Healthcare Solutions has a clear and compelling mission to provide outcome-focused, customer-driven solutions to the workers' compensation and auto liability/PIP markets. The organization is committed to ensuring that every client receives consistent and reliable services, innovative solutions and superior provider network management

Future of Healthcare Industry

The current healthcare infrastructure in India is inadequate The overall number of beds, physicians and nurses is low compared to other developing countries and international averages. The situation is worse in the case of tertiary beds and specialist physicians. Higher Investment in Training required. Meeting the expected demand in 2012 will require and investment of US$25 billion

Challenges & Recommendations

Challenges
Low Government funding & initiatives lack of efficient execution of schemes & 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 Creating a Global Source of Skill Efficient dissemination of healthcare related information Establishment of Industry Body with adequate representation from all stakeholders

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