The Associated Chambers of Commerce and Industry of India

INDIA …

Healthcare Destination to the World…

A presentation by Dr. Naresh Trehan, Executive Director

Escorts Heart Institute And Research Centre LtdNew Delhi

September 21st, 2005

WITH THE INTEGRATION OF WORLD ECONOMIES…!

High quality treatment at a fraction of the cost,in comparison to western countries, makes India an ideal healthcare destination for highly specialized

medical care.

Over 25 years ago, we had set a bold aspiration for health in India

India was a signatory to the Alma-Ata declaration 1978, to attain

the global objective of

“Health for All by year 2000”

Escorts Heart Institute & Research Centre Ltd, New Delhi, INDIA

But we are far from achieving that vision

Beds Physicians Nurses

Per ’000 population, 2001*

Per ’000 population, 2001*

Per ’000 population, 2001*

1.5

1.5

4.3

7.4

India

Other low income countries (e.g., sub-Saharan Africa)

Middle income countries (e.g., China, Brazil Thailand, South Africa, Korea)

High income countries (e.g., US, Western Europe, Japan)

1.8

1.8

1.0

1.2***

0.5**

World average 3.3 1.5 3.3

0.9

1.6

1.9

7.5

Escorts Heart Institute & Research Centre Ltd, New Delhi, INDIA

Inspite of improvement, India is still well behind other countries

Developingcountry average

Morbidity

India1990

India today

Developedcountry average

339274

256119

Life expectancy India1951

India today

Developingcountry average

DevelopedCountryaverage

DALYs Per ‘000 population

Life expectancy at birth Years

Infant mortality Deaths per ‘000 births

65 7837

63

Infant mortality

India 1951

India today

Developingcountry average

DevelopedCountryaverage

56

146

70

Escorts Heart Institute & Research Centre Ltd, New Delhi, INDIA

This spend matches that of other developing countries as a percentage of GDP but is low on a per capita basis

6.7

6.5

5.7

5.2

2.7

Korea

Brazil

Thailand

India

China

Per cent, 2001*

720

453

349

143

94

Korea

Brazil

Thailand

China

India

US$, PPP, 2001*

Healthcare spend as % of GDP Healthcare spend per capita

* Most recent data available has been used (1997-2001)

Inspite of this scenario, there are Centres of Excellence spread all across India and to name a

few:

Apollo Hospitals

Escorts Heart Institute & Research Centre

Wockhardt Hospitals

Fortis Healthcare

Tata Memorial Cancer Hospital

Leelawati Hospital

Manipal Hospital

INDIAN HEALTHCARE CAPABILITY

Over 60,000 cardiac surgeries done per year with out comes at par with international standards

Multi organ transplants like Renal, Liver, Heart, Bone Marrow Transplants, are successfully performed at one tenth the cost.

Patients from over 55 countries treated at Indian Hospitals.

HIGH QUALITY HEALTHCARE AT A SIGNIFICANT COST ADVANTAGE

Centres of excellence providing specialty high quality treatments.

Some areas are:

Cardiology & Cardiac Surgery

Joint Replacement

Minimally Invasive Surgery & Therapeutic Endoscopy

Oncology

Pathology

INDIAN HOSPITALS CAN OFFER MEDICAL SERVICES AT A FRACTION OF THE US / EUROPEAN COST

PROCEDURE COST (US$)

7,500

-------

-------

8,000

3,500

6,000

26,000

69,000

6,000

2,000

US UK

23,000

1,50,000

2,00,000

12,000

10,000

Heart Surgery

Bone Marrow Transplant

Liver Transplant

Knee Replacement

Cosmetic Surgery

40,000

2,50,000

3,00,000

20,000

20,000

INDIATHAILAND

India has the opportunity to provide the best of the Western & Eastern healthcare systems

Escorts Heart Institute & Research Centre Ltd, New Delhi, INDIA

Ayurveda recognized as an official healthcare system in Hungary.

Doctors in the west are increasingly prescribing Indian Systems of Medicine

More than 70% of the American population prefer a natural approach to health

Americans are said to spend around $ 25bn on non-traditional medical therapies and products *

India’s Gift to the World

Ayurveda

Yoga

Siddha

Source : Los Angeles Times * Economic times dated 25th July 2003

1.5 billion

Bangladesh

Nepal

Afghanistan

Pakistan

Sri Lanka

India has strong health infrastructure catering to 1.5 billion people

SAARC & Neighbouring

Countries

East Africa

CIS

Middle East

South East Asia

USA, Australia, New Zealand

UK Canada

PATIENTS FLOW IN INDIA FROM ACROSS THE WORLD

Escorts Heart Institute & Research Centre Ltd, New Delhi, INDIA

Medical Tourism

• A recent CII-McKinsey study on healthcare says Medical Tourism alone can contribute Rs. 5,000-10,000 crores additional revenue for tertiary hospitals by 2012, and will account for 3-5 per cent of the total healthcare delivery market.

• What India needs to do is to strengthen basic infrastructure like Airports, Power, Roads etc. to support these initiatives.

Medical Tourism

ESTIMATES

* Excludes investment in bed capacity to avoid double count with investment in secondary/tertiary beds

US $ in billions

13-20

7-9 0.5-0.7 0.5-0.7 22-30

Medical equipment could account for 20-30% of investment in Beds (Rs.20,000 to40,000 crore)

Investmentin secondary beds

Investmentin tertiary beds

Investmentin medical colleges*

Investmentin nursing schools

Investmentfor other health professionals(e.g., pharmacists,technicians,administrators)

Total investmentrequired

(Source: CII-McKinsey & Company Report 2002)

INVESTMENT REQUIRED TO BRIDGE THE GAP IN NEXT 10 YEARS

0.5-1

India needs at least 750,000 extra beds to meet the demand for inpatient treatment by 2012- opportunity in tertiary healthcare facilities.

India needs at least 1 million more qualified nurses and 500,000 more doctors by 2012 as compared to existing number.- opportunity in medical education.

To raise this infrastructure, total additional investment to the tune of US$ 25-30 billion is needed by 2012.

Government and international agencies will only be able to gear up US$ 7 billion and the rest of investment has to come from private sector.

Healthcare Infrastructure…..In Summation

MediCity Solution

Concept

To create a Johns Hopkins /

Mayo Clinic of the East. Start

research on incorporating the

strengths of traditional

medicine with allopathic

medicine to create newer

therapies

To create a Johns Hopkins /

Mayo Clinic of the East. Start

research on incorporating the

strengths of traditional

medicine with allopathic

medicine to create newer

therapies

1. To provide integrated tertiary care services spanning over 20 super specialities of the highest quality at competitive price.

2. To create core research facilities for in-house and shared research in medicine.

3. To create a new form of medicine by researching on traditional medicines and integrating with modern medicine

4. To exploit potential of global health by leveraging technology and hospitality services ( Medical tourism).

5. To leverage the strengths for value added services in research and development ,BPO etc.

6. To provide world class education and training.

Facilities Planned

1500 beds (350 critical care beds). 40 operation theatres. 18/20 super specialties (6/7 major like cardiology,neuro-

sciences, advance pediatrics, high end orthopedics, oncology, traumatology and 12/13 minor specialties.

R& D facilities (clinical and bio-technology) including vet labs. Hotels & serviced apartments and office facilities. Education facilities. Residential complexes. Extensive greenery plus parking – ground coverage – 30%. Intelligent city.

Thank you…