A presentation on health care industry.

1. Health Care Industry
- Praroop Jain
- 1066

2. Health care industry
The health care industry is one of the
world's largest and fastest-growing
industries.
Consuming over 10 percent of gross
domestic product (GDP) of most
developed nations, health care form an
enormous part of a country's economy.

3. For purpose of finance and management, the health
care industry is typically divided into three
categories :
• Hospital Activities
• Medicines and Pharmacy Business
• Medical and Surgical Appliances
All the three are interconnected and overlapping.

4. Market break-up by revenues

5. MARKET SIZE
• The healthcare sector in India is expected to grow at
a CAGR of 15 per cent to touch US$ 158.2 billion in
2017 from US$ 78.6 billion in 2012, according to a
report by Equentis Capital.
• India being a country with a growing population, its
per capita healthcare expenditure has increased at a
CAGR of 10.3 per cent from US$ 43.1 in 2008 to US$
57.9 in 2011, and going forward it is expected to
reach US$ 88.7 by 2015.

6. • The factors behind the growth of the sector are
rising incomes, easier access to high-quality
healthcare facilities and greater awareness of
personal health and hygiene.
• Healthcare providers in India are expected to
spend US$ 1.08 billion on IT products and
services in 2014, a four per cent increase over
2013.

7. Per-capita healthcare expenditure

8. • The private sector has emerged as a
vibrant force in India's healthcare
industry, lending it both national and
international repute. The sector’s share in
healthcare delivery is expected to increase
from 66 per cent in 2005 to 81 per cent by
2015. The private sector's share in
hospitals and hospital beds is estimated at
74 per cent and 40 per cent, respectively.

9. Foreign Investment
According to data released by the
Department of Industrial Policy and
Promotion (DIPP), hospital and diagnostic
centers attracted foreign direct investment
(FDI) worth Rs 11,272.32 crore (US$ 1.87
billion) between April 2000 and February
2014.

10. GOVERNMENT INITIATIVES
Some of the major initiatives taken by the government to
promote the healthcare sector in India are as follows:
• All India Institute of Medical Sciences (AIIMS) spends at least
Rs 2 million (US$ 33,271.51) annually on each faculty member,
according to a study by the institute's hospital administration.
• The Union Cabinet has approved the proposal for setting up
of National Cancer Institute (NCI) at a cost of Rs 2,035 crore
(US$ 338.51 million). NCI will be set up in the Jhajjar campus
(Haryana) of All India Institute of Medical Sciences (AIIMS),
New Delhi. The project is estimated to be completed in 45
months.

11. Contd.
• Government of India also runs various
awareness programs.
• In Indian movies, an advertisement is
shown before the movie telling people
about harmful effects of smoking.

12. Private Participation
• Various private groups like Dr. Reddy’s, Fortis
and Max are increasing their penetration in
tier-2 and tier-3 cities.
• Medanta Medicity in Gurgaon is a world class
hospital stated by Dr. Trehan.
• Increased participation by private players is
also resulting in medical tourism in india.
• This helps in generating foreign exchange as
well building the GDP of the nation.

14. What is driving change in the sector?
• A revolution in care, enabled by better
connectivity and driven by consumer needs and
preferences
• Regulatory reform, as governments explore new
ways to control costs and improve outcomes
• The impact of advances in science, using the
knowledge of biosciences and genomics to
deliver safer, more personalized, more preventive
and cost-effective healthcare

15. Medicine and Pharma Triumph
• Indian pharma players are getting more
and more USFDA approvals and are
slated to capture the US markets.
• Low costs of manufacturing along with
great R&D facilities is allowing them to
emerge global.
• Companies like Sun pharma, Lupin, Dr.
Reddy’s are major medicine exporters to
the US and EU and most of their revenues
come from the exports to these nations.