The Health Care market in India_Sayantan

Health Care market in India

Hospitals Pharmaceuticals Diagnostics Medical Equipment and supplies Medical Insurance Medical Tourism

GROUP A4- Sayantan SinghaDebojyoti BhowmikDebanjan SenPrashant D’cruzRajiv DasRia Chakraborty

“Healthy citizens are the greatest asset of any country”

- Winston Churchill

The world’s 4th largest economy in terms of Purchasing Power Party after US, UK and Japan

109 million literate population.

An educated urban middle class of approximately 60 million.

7th most attractive destination for Foreign Direct Investment. - Japan Ex-Im bank report.

India - Top among world’s emerging markets. - Morgan Stanley report

INDIA

Hosp

ital

Ownership Basis

Clinical Basis

Public Hospitals Voluntary Hospitals

Private Hospitals Corporate Hospitals

General Hospitals

Rural Hospitals

Specialized Hospitals

Isolation Hospitals

Teaching Hospitals

Tertiary Hospitals

Hospitals can be classified on grounds of ownership and clinical operation

Apollo Group of Hospitals -one of India’s largest healthcare players. - Plans to invest Rs.2000 core, to build around 15 new hospitals nationally and internationally.

Fortis Healthcare- 250 core, 200 bed cardiac hospital plus 12 cardiac and information centers. Expansion plans: increase capacity to 375 beds and tie-up with an overseas partner.

Escorts:

-EHIRC provides intensive care to patients after surgery or angioplasty. Unique in the field of preventive cardiology.

Wockhardt –

-is working with Harvard Medical International in providing world-class health care to Indians through Wockhardt Hospitals especially in the field of HIV/AIDS.

Asian Heart Institute -

- the newcomer. A swank, high-tech and state-of-the-art hospital with 230 beds, 7 operation theatres facility.

MAJOR PLAYERS

Market Overview

Hospitals are a major component of the Indian Health care industry forming a more than 50% of

healthcare sector revenues

2006 2007 2008 2009 2010 2011 20120

20

40

60

80

100

120

140

2

10

18

35

57

114

150

Year

Nos

of A

ccre

dite

d H

ospi

tals

Number of Accredited Hospitals

Pwc health research institute

Current Scenario of Health insuranceHealthcare Insurance Market in India is unique

and has a strong growth potential than the other

insurance markets.

Health Insurance is an important part of Indian

Insurance market and it portfolio which growing at

the highest rate. 17 General Insurance Companies and 3 Health Insurance companies are at present selling health insurance.

2002 2003 2004 2005 2006 2007 2008 2009 20100

1000

2000

3000

4000

5000

6000

7000

8000

9000

7611004

13541732

2222

3209

5125

6526

8100

CAGR 37 %

Source : IRDA

INDIA HEALTH MARKET INSURANCE

MAJOR MARKET PLAYERS IN HEALTH INSURENCE

Pharmaceutical Industry

Bulk drugs, drug intermediates, formulations, generic & branded, OTC

Bio-technology, Bio-informatics, neutraceuticals Annual turnover – Rs: 23,000 cr. (5-6% growth p.a.) Employment – Direct - 50 lakhs

Indirect - 25 lakhs 20,000 units (300 in the organized sector) No. of hospitals – 16,000 Retail chemists – 6 lakhs 4th in the world (volume) 12th in the world (value) Significant exports from India

Traditional Formulation

Cluster

Traditional Formulation

Cluster

Emerging Bulk Drugs

Cluster

Emerging Bulk Drugs

Cluster

Emerging Formulation

Cluster

Emerging Formulation

Cluster

Traditional Bulk Drugs

Cluster

Traditional Bulk Drugs

Cluster

GOAMAHARASHTRA – Mumbai, PuneANDHRA PRADESH - Hyderabad

GOAMAHARASHTRA – Mumbai, PuneANDHRA PRADESH - Hyderabad

ANDHRA PRADESH - VisakhapatnamANDHRA PRADESH - Visakhapatnam

HIMACHAL PRADESH – BaddiUTTARAKHAND - Pantnagar, Haridwar

HIMACHAL PRADESH – BaddiUTTARAKHAND - Pantnagar, Haridwar

GUJARAT – Ahmedabad, Ankleshwar, Vapi, Vadodara

MAHARASHTRA – Mumbai, Tarapur, Aurangabad, Pune

ANDHRA PRADESH – Hyderabad, MedakTAMILNADU – Chennai PONDICHERRYKARNATAKA – Mysore and BangaloreGOA - Panaji

GUJARAT – Ahmedabad, Ankleshwar, Vapi, Vadodara

MAHARASHTRA – Mumbai, Tarapur, Aurangabad, Pune

ANDHRA PRADESH – Hyderabad, MedakTAMILNADU – Chennai PONDICHERRYKARNATAKA – Mysore and BangaloreGOA - Panaji

Contract Manufacturing Market—Key Indian Hubs

Pharmaceutical Industry Market share

Diagnostic Market Overview

Indian diagnostic market comprises of Diagnostic test services market

Diagnostic products/instruments market

Hospitals & NH

40%

Others7%

Labs &Diagnostics12%

Pharma & Supplies20%

Allopathic Doctors22%

The pathology market is currently 2.5 per cent of the overall healthcare delivery market. There are 40,000 independent path labs in the country and the industry is highly competitive and price-driven with kickbacks and business referral payments in the absence of a regulatory body. Around 70 per cent of treatment decisions in the country are based on lab results.

Diagnostic Market segment

Medical equipment suppliers

Expensive capital expenditure

CT Scan, MRI, Cath lab, Laser, Theatre equipment, X-ray

Siemens, Philips, Hitachi etc. New hospitals, modernization (technological

obsolescence) Each new bed – total capex Rs. 20-100 lakhs Equipment sales, AMC, Spare parts, training

Rs. 8,000 to 9,000 cores p.a.

Medical Technology Market

• $5 billon Medical Device market

• Expect to reach CAGR of 15% (KPMG)

Medical Device Market growth rate of 15%“We can expect 12%–16% annual growth over the next 10 to 15 years. All the risk factors put together are just irritants, which at most can bring growth to 8%–9%. This is still significantly higher than the 2%–3% growth that developed, Western markets are currently experiencing.”

Annaswamy Vaidheesh - Johnson & Johnson

MEDICAL TOURISM WHY IN INDIA

Why India

?

Short Wait Time

High Quality

Low CostEnglish

Speaking Staff

Travel Affordabil

ity

Medical tourism in India

The Current Scenario

The major service providers in Indian medical tourism : The Apollo Hospital, Escorts Hospital,

Fortis Hospitals, Breach Candy, Hinduja, Mumbai’s Asian Heart Institute, Arvind Eye Hospital, Manipal Hospitals, Mallya Hospital, AIIMS.

In terms of location- Delhi, Chennai, Bangalore and Mumbai cater to the maximum number of the health tourists and are fast emerging as medical tourism hubs.

Nowadays medical tourism in India includes advanced and life savings health care services like open transpalnts, cardio vascular surgery.

How the fall of Rupee has increased medical tourism in india

As the rupee continues to plummet, more and more patients from abroad are coming to India to undergo complex surgeries at affordable rates. Private hospitals in Chennai say that they have seen a 10% to 15% increase in medical tourism in the past one year. While part of it could be attributed to the falling rupee, the bigger picture spells strain on the hospitals' pockets as they procure most of their medical supplies from abroad.

The study conducted by the Associated Chambers of Commerce and Industry (ASSOCHAM) said an Australian patient who paid about 10,000 dollars for a surgery in 2010 could get the same procedure done for about 7,000 dollars now

Cost comparison between India, USA, Thailand and Singapore

Stay Healthy, Stay Happy!