The incredible opportunity in India for the healthcare industry

1. By
Ravi Thomas

2.  India‘s rising population and income
levels, along with a growing preference for
private health services over public
services, is augmenting the growth of the
healthcare delivery market

3.  India is witnessing a shift in disease
patterns from communicable diseases to
the high incidence of non-communicable
and lifestyle-related diseases, which is
driving the need for tertiary and
quaternary-care hospitals and clinics.

4.  Among countries outside the US, India has one
of the largest number of Joint Commission
International (JCI) approved hospitals.
 The country has 500,000 doctors, 900,000
nurses and around 1.37 million beds.
 India holds the top position in the number of
medical and nursing colleges —303 and 3,904,
respectively.
 The cost of surgery in India is one-tenth the
cost in the US and European countries

5.  Population growth and increased disposable
income are expected to result in better
healthcare awareness and more expenditure on
healthcare.
 Healthcare expenditure in India is expected to
increase by 15 per cent per annum.
 India has the potential to add nearly 1.74
million beds between 2008 and 2027 with an
investment of about 104 USD billion during the
same period to fulfill the unmet needs.

6.  Expected to reach 280 USD billion by 2020, according to a report by an
industry body. "Healthcare has emerged as one of the most progressive
and largest service sectors in India with an expected GDP spend of 8 per
cent by 2012 from 5.5 per cent in 2009”.
 As per a study by an industry body and Ernst & Young, India would require
another 1.75 million beds by the end of 2025.
 The Indian health insurance market has emerged as a new and lucrative
growth avenue for both the existing players as well as the new entrants.
 As per data released by the Department of Industrial Policy and
Promotion (DIPP), the drugs and pharmaceuticals sector has attracted
foreign direct investment (FDI) worth 1.87 USD billion between April 2000
and January 2010, while hospitals and diagnostic centers have received
FDI worth 980.38 USD million in the same period.
 Computer-based bio-surveillance projects generating data about diseases
and creating databases on healthcare in rural areas are becoming popular
in India with various organizations entering into this arena.

7.  Government launched the National Rural Health Mission (NRHM) in 2005
 Aims to provide quality healthcare for all and increase the expenditure on
healthcare from 0.9 per cent of GDP to 2-3 per cent of GDP by 2012
 Budget 2011-12, 0%, increased the plan allocation to health by 20% to
5.8 USD billion
 Universal Immunization Program
 Revised National Tuberculosis Control Program
 National AIDS Control Organization
 Integrated Disease Surveillance Project
 National Cancer Control Program (NCCP)
 Pre-Natal Diagnostic Techniques (Regulation and Prevention of Misuse)
Act 1994 has been amended to make it more comprehensive

8.  Achieve an acceptable standard of good health amongst
the general population of the country
 Increase access to the decentralized public health
system
 The contribution of the private sector in providing
health services would be much enhanced
 Increased access to tried and tested systems of
traditional medicine will be ensured
 FDI Policy
 100 percent is permitted for all health related services
under the automatic route

9.  The National Health Policy 2002 focuses on the need for enhanced
funding and organizational restructuring of national public health
initiatives to facilitate more equitable access to healthcare facilities.
 The policy focuses on diseases that mainly contribute to the disease
burden — tuberculosis, malaria and blindness from the category of
historical diseases and HIV/AIDS from the category of newly emerging
diseases.
 This policy aims to achieve gradual convergence of health under a single
field of administration and lays emphasis on the implementation of
programs through local self-government institutions.
 The policy also aims to identify specific programs targeted at women‘s
health and strengthening of food and drug administration, in terms of
laboratory facilities and technical capabilities.
 Under this policy, a larger contribution is proposed from the central
budget for the delivery of public health services at the state level.

10.  Indian Council Of Medical Research (ICMR)
 Indian Medical Association (IMA)
 Central Drug Research Institute (CDRI)

11.  An additional 1.75 million beds are needed for India to
achieve the target of two beds per 1,000 population by 2025.
 An additional 700,000 doctors will be required by 2025 to
reach a ratio of one medical doctor per 1,000 individuals.
 To maintain the current doctor-to-nurse ratio of 2.2, an
additional 1,600,000 nurses will have to be trained by 2025.
 Achieving these targets will require a total investment of
77.9 USD billion.

12.  Health Insurance
 Medical Tourism
 Hospital Management
 Curative and Preventive Services
 Infrastructure Facilities like Hospitals and Diagnostic Centre
 Training Manpower (doctors, nurses, technicians)

13. Private players have made significant investments in setting up state-of-the-art
private hospitals in cities likbai, New Delhi, Chennai and Hyderabad.
Introduced latest medical technology and have created a competitive environment.
Government's share in the healthcare delivery market is 20 percent while 80 percent
is with the private sector. Emergence of corporate hospitals has led to increased
professionalism in medical practices and use of hospital management tools.
 Apollo Group
 Fortis
 Max
 Wockhardt
 Piramal
 Duncan
 Ispat
 Escorts
 Ranbaxy Group Company

14.  Policy Makers and Government Officials:
 Minister of Health
 Secretary of Health
 Secretary of Science and Technology
 Industry

15.  E-mail: ravi@ravipthomas.com