Health Sector in India

COUNTRY LIFE EXPECTANCY

CHINA 84.69

JAPAN 82.19

AUSTRALIA 81.32

INDIA 69.89

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SECTOR IN INDIA

GLOBAL HEALTHCARE SECTOR: AN OVERVIEW

• World’s 2nd largest business sector

• Global healthcare revenue US$ 2.8Trillion

INDIAN HEALTHCARE SECTOR

• VALUED AT US$ 34BILLION

• ANNUAL GROWTH OF 13%

• CONSTITUTES 6% OF THE GDP

HEALTHCARE SEGMENTS

• PUBLICState ownedSubsidized medicineFree of cost treatment

• PRIVATE80% market share

INDUSTRY SEGMENTS

• HOSPITALS

• PHARMACEUTICALS

• MEDICAL TOURISM

HOSPITALS

• MORE THAN 16000 HOSPITALS

• MORE THAN 9 LAKH BEDS

• GROWTH RATE OF 10-20%

MARKET PLAYERS

PHARMACEUTICALS

• ONE OF THE FASTEST GROWING MARKETS IN THE WORLD

• ANNUAL GROWTH OF 17.5%

• CATERS TO 95% OF COUNTRY’S NEEDS

MAJOR MARKET PLAYERS

MEDICAL TOURISM

• WORTH US$ 1.2BILLION AND IS ESTD., TO REACH US$ 2.2BILLION BY 2012

• GROWTH RATE 12% PER ANNUM EXPECTED TO BE 30% BY 2012

• MEDICAL TOURISTS ACCOUNTS TO 2.72 LAKH PER ANNUM

MAJOR MARKET PLAYERS

FORECAST

GROWTH DRIVERS• RISING INCOME

• GROWING MIDDLE CLASS

• GROWING AND AGEING POPULATION

• GROWING URBANIZATION

• GROWING MEDICAL TOURISM

• HEALTHCARE INSURANCE PENETRATION

SWOT ANALYSIS

WEAKNESSES

• PRICE DESCRIMINATION

• INCOMPETENT PUBLIC SECTOR

• LOW / CAPITA EXPENDITURE ($ 94)

STRENGTHS

• COST EFFECTIVE

• UNTAPPED MARKET

• COMPETITIVE WORK FORCE

SWOT ANALYSIS

OPPOTUNITIES

• POLICY MAKEOVER

• MEDICAL TOURISM

• USE OF IT

THREATS

• BURGEONING POPULATION

• ILL MONITORED SYSTEM

ADVANTAGE INDIA

• OVER 6,50,000 DOCTORS

• HIGHLY SKILLED EXPERTS

• EMERGING MAJOR R&D CENTRE

• LOW COST DRUG DEVELOPEMENT

• SECOND HIGHEST NUMBER OF QUALIFIED DOCTORS IN THE WORLD

• HIGHEST SUCCESS RATE IN CARDIAC SURGERY AND BONE MARROW TRANSPLANTATION

• THE COST ADVANTAGE

ADVANTAGE INDIA - CONTD.,

Procedure US ($) UK ($) India ($)

Angioplasty30000 21000-27000 4000-5000

Angiography2500-3000 2000 400

Hip replacement19000 13000-16000 6000

Knee replacement27000-32000 16000-18000 6000

CABG30000 6400

Lasik2250-2900 400

MEDICAL EDUCATION

• 230 MEDICAL COLLEGES

• 106 PRIVATE COLLEGES

• 29,000 DOCTORS QUALIFY ANNUALLY

80% OF THE MEDICAL FACILITIES ARE CONCENTRATED IN THE URBAN AREA

WHILE 73% OF THE POPULATION RESIDES INTHE RURAL AREA

HEALTHCARE DEMAND

DEMAND Vs SUPPLY

HEALTHCARE INFRASTRUCTURE

THE ROAD AHEAD• IMPROVEMENT IN PHYSICAL

INFRASTRUCTURE

• IMPLEMENTATION OF TELEMEDICINE

• COST EFFECTIVE CLINICAL TRIAL

• EFFECTIVE PUBLIC PRIVATE PARTNERSHIP

RAHULKAMALKARTHIGADepartment of management StuDieS,School of management,ponDicherry univerSity