Indian healthcare is one of the fastest growing sectors, and is expected to reach ~USD 275 Billion in next 10 years. Much of this growth can be attributed to the infusion of private equity & foreign investments. These investments have resulted in creation of new infrastructure by private providers. Additionally, investments by international healthcare groups in Indian market are expected to boost innovation & quality care.
On the other hand, public health system in India is largely under funded with only 1.1% of GDP spent on healthcare. Given the resource constraints in the public sector, private investments in healthcare are expected to increase in the coming years. It is important to understand the specific focus of public and private investments in healthcare services and infrastructure; and how they may be appropriately allocated towards problem/resource constraint/developing areas and right outcomes.
There has been substantial improvement in geographical & financial access to healthcare; however accessing healthcare through virtual platforms is still in its nascent stage. To meet current & future challenges, healthcare systems would require innovative solutions. Digital Health encompasses a wide array of components like m-Health tools, health wearables, internet access and social media. It is changing the landscape of healthcare industry across the globe.
In India, mobile internet users are expected to cross 300 million mark by 2017 and offer a tremendous opportunity for healthcare industry to address the accessibility challenge. Data aggregation in health sector is critical for every stakeholder. Integrating data with healthcare delivery has immense potential to increase the effectiveness of delivery systems & generate insights for the business.
Changing economic environment and technology up-gradation have made significant changes in the healthcare system. There is immense potential for collaborations between stakeholders by combing strengths, improving weaknesses, exploring opportunities and managing threats. India’s healthcare sector comprise of a variety of stakeholders ranging from healthcare institutions and organizations, which may include pharmaceutical players, medical equipment companies and hospitals. Policymakers, advocacy organizations, and research organizations play an important role in the process of policymaking and creating a conducive environment for growth and development. These stakeholders coming from these sectors may have different short term goals; however their vision to improve health standards and achieve universal health outcomes is common. It becomes important to bring them on a single platform to understand common healthcare goals and collaborative pathways to achieve India’s Health Goals.
Opportunities in Healthcare in India
Healthcare Infrastructure - Additional 1.8 million beds needed for India to achieve the target of 2 beds per 1,000 people by 2025. Additional 1.54 million doctors required to meet the growing demand for healthcare. Investment of USD 86 billion required to achieve these targets
Health Insurance - Less than 15% of the Indian population is covered through health insurance. The total market size of the insurance sector in India was USD 66.4 billion in FY 13. It is projected to touch USD 350–400 billion by 2020.
Medical Tourism - Indian medical tourism industry is expected to register a CAGR of more than 20% during 2013-2015. Cost of surgery in India is nearly (1/10)th of the cost in developed countries
Research & Development - Contract research is a fast growing segment in the Indian healthcare industry. Cost of developing new drug is as low as 60% of the testing cost in the USA. About 60% of global clinical trials is outsourced to developing countries
Digital India – A Leapfrog
As India pivots closer to the ‘Virtualization of Healthcare’ amazing breakthroughs are occurring erasing the healthcare boundaries and enabling care through mobile, digital and wireless technologies. Digital health technologies have the potential to transform the way healthcare is delivered and help governments analyse Big Data to identify unmet need and measure outcomes in a precise manner. Majority of private hospitals in India are adopting various advanced technologies focusing on improving patients’ treatment and experience.
Increased Mobile Connectivity and Offers – Mobile health services have entered the market, fitness apps have now started offering appointments, medical services, diagnostics and preventive care measures through mobile apps
Growing Health IT Market – Integrated delivery networks, access to software, infrastructure and service everywhere. New technology platforms, disease knowledge management, user-supplier connectivity are few of the features of the growing Healthcare IT market in India
Integrating Smart Cities & Healthcare Industry – According to the census, urban areas are expected to house over 40% of India’s population and contribute to 75% of India’s GDP by 2030. Smart Cities leverage technology and utilize existing and planned infrastructure investments to provide a higher quality of living to residents, a conducive investment climate for businesses and allow maximization of resource utilization
Smart Healthcare Solutions – Online portals, e-healthcare cards and records, digital and diagnostic analytics, healthcare training using advanced technology, availability of tele-medicine, GIS enabled services, business process and automation
Invest in India - What India has to Offer!
India jumps 12 places on the Global Ranking of Ease of Doing Business as per World Bank Group in just 18 months. The Government of India plays a stewardship role in creating the vision for India’s healthcare system. The Indian Government envisages the pre-dominant route of Public-Private-Partnerships (PPP) to create a legal framework, build competitiveness, build a market and supplier base for public-private contracts and implement strict controlling and performance monitoring. Following are few of the offers :
- Ease of Doing Business
- Tax Incentives and Tax Holidays
- Simplifying Regulations
- Infrastructure Base – Physical, Digital, Infrastructure, Power, Waster Electricity
- Integrated Medicity
- Upgraded IT services for Healthcare
- Clinical Research & Trials
- Reform Strategy – Institutional Management, Collaboration with private sector (PPP)
- Healthcare Infrastructure
- Equipment Manufacturing Units
Indian healthcare is one of the fastest growing sectors, and is expected to reach ~USD 275 Billion in next 10 years. Much of this growth can be attributed to the infusion of private equity & foreign investments. These investments have resulted in creation of new infrastructure by private providers. Additionally, investments by international healthcare groups in Indian market are expected to boost innovation & quality care.
On the other hand, public health system in India is largely under funded with only 1.1% of GDP spent on healthcare. Given the resource constraints in ...