Healthcare Nitish Bhandari MDI

8/14/2019 Healthcare Nitish Bhandari MDI

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Healthcare

Submitted by:

Nitish BhandariManagement Development Institute



Current Healthcare Scenario

• Presently US$ 35 billion industry, expected toreach over US$ 75 billion by 2012 and US$ 150billion by 2017

• $34 per capita, or roughly 6% of GDP.

• Private sector accounts 80% of spending

• 39 %Institutional delivery care coverage 2000-07

• Only 18% of rural population has access to

improved sanitation facilities• 5.6 million child deaths every year

• Half of children in India are underweight



Delivery Gaps

• The healthcare Divide- The private sector accounts formore than 80% of total healthcare spending in India.

• Lack of insurance- only 11% of the population has anyform of health insurance coverage.

• Lack of infrastructure- India needs 74,150 communityhealth centres per million population but has less thanhalf that number.

• Lack of efficiency- most hospitals are short-staffed,

poorly maintained or have outdated medicalequipment.

• Inadequate health care regulations- poor medicalservices & absence of corrective authority



ProposalCollaboration between government & private parties

• Government provides already existing healthcare centers, dispensaries,PHCs etc to private parties

• Premises provided is to be revived by the private players by investing into

renovation , expansion and modernization of equipments

• These Premises are to be provided on BOOT basis, i.e., Build Own Operate

& Transfer in which private player returns the premises after a period of 15-20 years

– Rationale: by 2030 India is expected to have three folds the per capita

income and health & life insurance is expected to increase five folds

• Private parties develop these centers & earn profits

• Tax breaks on the profits

• Tax break for doctors & support staff



Proposal continued…

• Government to develop infrastructure like roads, schools near by so thatdoctors from urban areas are encouraged to come

– Under government’s infrastructure developmental policies

• Private parties will gain from large number of patients coming to them

• Government to provide concessions for already existing urban hospitals,medical centers of these private parties provided they have opened ruralhospitals , medicals centers in some ratio x:y in the same state

Opportunity of selling third party health insurance

• Due to availability bias there is high chance that patient’s family will buy it

• Health insurance business is growing at 50%

• Projected to grow to $5.75bn by 2010

• Building more awareness about health insurance will increase theprobability of buying it



Proposal for Regulatory

• Government to set up regulator in the lines of

SEBI, TRAI, IRDA for:

– Checking the prices

– Hospitals to submit monthly/quarterly reports

– Basic standards are being followed

– Grievance cell

– Transparency in the system through RTI

– Systematic working



Win-Win Situation

Government

Benefits

• No subsidies

• Better healthcare

• Progress for country High HDI

• Higher growth

Losses• Incur expenditure on additional

infra like schools, parks, etc(but infra development oncards)

• Tax losses

Private Parties

Benefits

• Tax breaks, profit margins might reduce but compensatethrough volumes

• Require lesser investments as will operate on Govt. premises.

• New & small private entities can be given opportunities

• Affordable loans for expansion through PSU Banks

• Health insurance to be sold through third parties

Losses

• Delays due to beaurocracy

• Initials years might not be profitable



Impact

• Medical facilities to the masses

• Health awareness

• 2% annual reduction in chronic diseases death

rates over the next 10 years to 2015 will result ineconomic growth of $15bn

• Increased penetration & decentralization of health services

• Increase in quality of health care

• Decrease in mortality rates in rural areas



What else ….

• Health awareness campaigns

• Reproductive & child health programs

•

Awareness about health insurance• Promotion of healthy life styles

• Strengthening capacities for data collection,

assessment and review• Evidence based planning, monitoring and

supervision



Thanks

Healthcare Nitish Bhandari MDI

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