2. Current Status
Source: FICCI, Ernst & Young Study
Growth Drivers
Growing middle class
Rising income
Growing and aging population
Growing urbanization
Growing medical tourism
Healthcare Insurance Penetration
3. Healthcare Demand Vs Supply
HEALTHCARE SERVICES DEMAND IN INDIA HEALTHCARE SERVICES SUPPLY IN INDIA
Tertiary Maximum concentration of
Conditions requiring care from Urban
Care corporate healthcare
specialized clinics and facilities
Semi-Urban Highly fragmented and
Segment that require constant
Secondary
unorganized sector, focus
medical attention, including short
Care
mainly on secondary care
period of hospitalization
Primary The basic healthcare facilities for Even Primary & Secondary
Rural
Care common & minor ailments, and care is at times elusive
where prevention is most effective
90% patient needs primary and secondary care
4. Healthcare Demand Vs Supply
HEALTHCARE SERVICES DEMAND IN INDIA HEALTHCARE SERVICES SUPPLY IN INDIA
Tertiary Conditions requiring care from
Care specialized clinics and facilities
Hospitals
Nursing homes
Segment that require constant
Secondary
medical attention, including short
Care
Private practitioners
period of hospitalization
District & Taluk Hospitals
Primary The basic healthcare facilities for Government
Community Health Clinics Funded Focus
Care common & minor ailments, and
where prevention is most effective
Primary health clinics
Opportunities in the bottom of the pyramid
5. Opportunities: Infrastructure
India Healthcare Infrastructure: Key Statistics *Statistics *
India Healthcare Infrastructure: Key
Bed Physicians Nurses
Per ‘000 population
Bed Physicians Nurses
Per ‘000 population
High Income Countries 7.4 1.8 7.5
High Income Countries 4.3 7.4 1.8 7.5
Middle Income Countries 1.8 1.9
Low Income Countries 1.5 1.5 1.6
Middle Income Countries 4.3 1.8 1.9
India 1.5 1.2 0.5
Low Income Countries 1.5 1.5 1.6
World Average 3.3 1.5 3.3
India 1.5 1.2 0.5
To meet 2012 demand requires investment of US$ 77.9- 88.8 billion**
India target’s to reach a bed to thousand-population ratio of 1.85 to 2 by 2012
World Average 3.3 1.5 3.3
* Healthcare in India :excess of 1 CII & McKinsey, Data as ofto reach the ratio of 1.85*
Beds in The road ahead - million needed 2001
** Opportunities in Healthcare “Destination India” –E&Y and FICCI, Data as of Jan 2007
To reach the target number of beds to population ration 1.55: 1000/ 2:1000 of US$ 77.9-88.8 billion**
To meet 1012 demand requires investment
To meet 2012 demand requires investment of US$ 77.9- 88.8 billion**
Need for private sector investment amounts to US$ 69.7 billion
* Healthcare in India : The road ahead - CII & McKinsey, Data as of 2001
** Opportunities in Healthcare “Destination India” –E&Y and FICCI, Data as of Jan 2007
To reach the target number of beds to population ration 1.55: 1000/ 2:1000
6. Opportunities: Telemedicine
From patient treated by lower To patient connected to a
educated doctor multi specialty network
Radiologist
Pathologist
Cardiologist
Generalist
Second Opinion
Ophthalmologist
Oncologist
Health for the poor consists Healthcare available and
merely of general physician affordable for all
80% of the medical facilities are concentrated in the urban area
while 73% of the population resides in the rural area
Public Private Partnership
7. Opportunities: Medical Value Travel
India’s Cost Advantage
Procedure Cost (US$)
US India
Heart Surgery 100,000 4,400
Liver Transplant 2,50,000 30,000
Bon Marrow 3,00,000 40,000
Transplant
Knee Surgery 48,000 4,500
Hip Replacement 55,000 4,500
Indian medical tourism market could touch USD 1.5 billion by 2012
Over 272,000 tourists traveled for medical treatment in 2007 contributing USD 656 million
in 2007
Patents are expected to save 60% - 95% of the total treatment costs in India
Government has created special visas for medical tourism
8. Opportunities: Health Insurance
Source: FICCI, Ernst & Young Study
Health insurance projected to grow to US$ 3.8 billion in 2012
Merely 10% of Indian population has got health insurance cover so far
9. Medical Devices: Overview
Source: FICCI, Ernst & Young Study
The medical devices and equipment market growing at 15
percent per year
Almost 65 per cent of the medical devices is imported
US, Germany and Japan are meeting 85 % of the demand
Most of the multinationals in medical technology has
entered India to explore the booming market
11. Medical Devices: Opportunities
A traditionally price sensitive market, shifting towards a health conscious,
technology demanding population
Tertiary care mostly driven by the private healthcare players who are
always ready to invest on the best and expensive equipments for their
patients
Indian Government’s National health policy also aims to increase and upgrade health care facilities
Government acknowledges need for foreign/ private involvement in medical technology
The duties on medical equipments have been reduced over a period of time
Most critical medical devices do not require duties