HEALTHCARE SERVICES IN INDIA 2012: THE PATH AHEAD

Indian Economy on a Growth Path

Consistently growing GDP (%) 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. Increasing mobile penetration

Population Growth

India is the worlds second most populous country

Significant population growth between 1970 2000

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

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

Beds/ 10000

Head

Budget FY10
INR Cr

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

14,127 1,448 734 350 100 10

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,

Healthcare Services Associated Industries

Diagnostics & Pathology

Medical Equipment & Devices

Medical Tourism

Private Health Insurance

The Healthcare Industry In India: 2012

INDIAN HEALTHCARE SERVICES INDUSTRY TO REACH USD 77 BILLION BY 2012

Growth Drivers

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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