A study on hos[ital sector in India

1. HOSPITALS
GROUP - 15

2. AGENDA
 INTRODUCTION
 PLAYERS
 SEGMENTS & MARKETSHARE FINANCIAL
PERFOMANCE
 KEY DRIVERS
 GOVERNMENT POLICIES
 OPPORTUNITIES & CHALLENGES
 CONCLUSION

3. INTRODUCTION
 The World Health Organization (WHO) has described the
framework of a health care system in terms of its basic building
blocks.
 These include “delivery of effective, safe, quality personal
and non-personal interventions
 Indian healthcare sector, one of the fastest growing industry
 Rising income levels, ageing population, growing health
awareness and changing attitude towards preventive
healthcare is expected to boost healthcare services
demand in future
 There is substantial demand for high-quality and
speciality healthcare services in tier-II and tier-III cities
 To encourage the private sector to establish hospitals in
these cities, government has relaxed the taxes on these
hospitals for the first 5 years.
 Health insurance is gaining momentum in India

4. INTRODUCTION
 The low cost of medical services has resulted in a rise in
the country’s medical tourism
 India has emerged as a hub for R&D activities for
international players due to its relatively low cost of
clinical research
 Conducive policies for encouraging FDI, tax benefits,
favorable government policies have helped the industry
attract private equity, venture capitals and foreign players
 Strong mobile technology infrastructure and launch of 4G
is expected to drive mobile health initiatives in the
country
 To standardise the quality of service delivery, control cost
and enhance patient engagement, healthcare providers
are focussing on the technological aspect of healthcare
delivery.

5. SEGMENTS & MARKETSHARES
• Single
Specialty
• Multi
Specialty
• General Care
• Specialty
Care
PRIMARY SECONDARY
TERTIARYQUARTENARY

6. SERVICE PRIMARY SECONDARY TERTIARY
Type of service Only medical Medical and
surgical
Complex Surgical
Patients Out patients In patients and
Out patients
Only In Pateints
Beds 0 50 - 200 200 +
Investment Low Medium
8 – 20 lakh/bed
High
50 – 60 lakh/bed

7. 71%
13%
9%
4% 3%
MARKET SHARES
HOSPITALS PHARMACEUTICALS
EQUIPMENTS & SUPPLY INSURANCE
DIAGNOSIS

8. FINANCIAL PERFOMANCE AND
PREDICTIONS

9. KEY DRIVERS
• Age demographics
• Rising incomes
• Improvement in health awareness : boost
hospitalization rates
• Changes in disease profile
• Rising penetration of health insurance
• Increasing opportunities from medical tourism

10. GOVERNMENT POLICIES
 Union Ministry for Health & Family Welfare
 FDI
100% allowed since 2000
 National Rural Health Mission & National Urban Health
Mission
 Proposal to set up 15 Model Rural Health Research
Centres- undertake research on local health issues
concerning the rural population.
 Health for all Initiative by Government-free diagnosis
services and free drug services have been given priority
 Proposal for setting up four new AIIMS, a vision to
set up one AIIMS in each state, which is expected
to increase the competition amongst private
players

11.  Allocation of USD 875.4 million for improving medical
education training & Research
 12 additional government medical colleges to be
established.
 Reduction in customs duty for life saving
equipment's to 5% from 25%
 International co-operation

12. OPPRTUNITIES & CHALLENGES
OPPORTUNITIES
 Rising Income Levels &
Rising population
 Medical Tourism 3.2 Bn USD
by 2015
 Policy support - FDI & Tax
benefits
 Large pool of trained medical
staff
 Low cost
CHALLENGES
 Capital and labour intensive
 Lack of awareness
 Low penetration of medical
insurance
 Threat of new entrants –
HIGH

13. CONCLUSION
 Risk of new entrants is high
 Prospect for growth is very high considering the
Indan atmosphere