The document provides an overview of the healthcare sector in India. It discusses key aspects of the Indian healthcare system including its structure, the growing private sector, expanding middle class, changing demographics, and technological advancements. It also analyzes the sector using PEST and SWOT frameworks, highlighting political, economic, social, and technological factors as well as strengths, weaknesses, opportunities and threats. The Indian healthcare industry is large and growing rapidly but still faces challenges in providing universal access to high quality care.
3. INTRODUCTION
Healthcare :
The term healthcare system refers to a
country‘s system of delivering services for
the prevention and treatment of diseases and
for the promotion of physical and mental well
being.
4. Healthcare Industry
Today the healthcare industry has emerged as one of
the most challenging sectors as well as one of the
largest service sector industries in India .
The Indian economy over the recent past has started
looking up and has now decidedly being acknowledged
as likely to continue to sustain economic growth.
5. The Indian healthcare industry though still at the developing
stage and dynamics compared to other countries has also
benefited from this economic boom.
A country‘s healthcare system also reflects in part of the
culture and values of the society.
6. INDIAN SCENARIO
― India offers both best and worst of Healthcare ―
India is experiencing a continuous increase in life expectancy
and a decline in the birth rate.
The increased importance given to medical and technical
education has resulted in labor force.
The social and infrastructural development plays a critical role
in the development of this industry.
7. Rapid expansion
Healthcare is one of India‘s largest sectors, in terms of
revenue and employment, and the sector is expanding
rapidly.
The sector is more than $34 billion , translates to $34
per capita, or roughly 6% of GDP. This year, India‘s
healthcare sector is projected to grow to nearly $40
billion.
The private sector accounts for more than 80% of total
healthcare spending in India. One driver of growth in the
healthcare sector is India‘s booming population
8. Expanding Middle Class-An opportunity
By 2025, an estimated 189 million Indians will be at least 60
years of age—triple the number in 2004.
The growing elderly population will place an enormous burden on
India‘s healthcare infrastructure.
Expanding middle class : A report by National Council for Applied
Economic Research's (NCAER) Centre for Macro Consumer Research said by
2015-16, India will be a country of 53.3 million middle class households,
translating into 267 million people falling in the category.
9. Changing Scenario of Service
Changing Scenario of Service More women are entering the
workforce as well, further boosting the purchasing power of
Indian households- changing composition of healthcare sector
workforce.
Many of these women are highly educated: the ratio of women
to men who have a college degree or higher level of education is
40:60
Lifestyle diseases are faster than infectious diseases in India
Result - increase in cost per treatment, wellness programs
targeted at the workplace. Could help to reduce the rising
incidence of lifestyle diseases
10. PEST Analysis…
1. Political Analysis
2. Economic Analysis
3. Social Environment Analysis
4. Technology Environment Analysis
11. Political Analysis
The government is reducing its hold on subsidies.
There are particular pressure groups which tend to have an
influence on government hospitals.
Relationships between neighboring countries also affect the
hospital sector.
12. Economic Analysis
Increase in income would lead to an increase in the standard of
living . Thus people‘s lifestyles changes and health is better
understood. Thus there is a room for specialized treatment,
doctors, and hospitals.
Government has made loans easily available and thus people with
limited means could avail better/specialized treatment
13. Social Environment Analysis
Medical facilities have increased since there is more
awareness of healthcare among the population.
Certain percentages of beds have to be kept for poor
people
E.g. ― in Bombay 20% of beds has to be kept
reserved for poor people. Look after the needs
of local poor people. ‖
Teach hygiene, sanitation among the poor masses. Safe
disposal of hospitals wastes like used injection needles,
waste blood etc. and taking due care of environment.
Spreading awareness about various diseases through
campaigns and free medical check ups.
14. Technological Environment Analysis
Breakthrough innovation in the field of specialized equipment .
Communication has managed to bridge the gap between places
located at long distances.
Test tube babies .
Mobility of medical services Mobile phones, credit cards (for
payment purposes) etc have made doctors and medical facilities
easily available
15. Service Flower
Core Product
Treatment of human ills
Expected Product
Infrastructure to support reasonable number of beds Operation
theatres Equipments – like Cardio-respiratory supportive
equipment
AUGMENTED PRODUCT
Ambience: Central Air-conditioning Automation equipments ( X-
Ray Scanners, Printers, Photo Scanners, etc
16. Major Corporate Players
1. The Apollo Group of Hospitals (1983-Chennai)
2. Fortis Healthcare (1996)
3. Max India (1985)
4. Escorts (plans to set up a multi-speciality healthcare hub near Kolkata over 50
acres of land at an estimated investment of about Rs 900 crore)
5. Wockhardt & Duncans Gleneagles
International.
17. Medical tourism
Medical Tourism (Medical Travel) – relating
to rapidly-growing practice of traveling
across international borders to obtain health
care.
‗‘ Over 50 countries have identified medical tourism as
a national industry. ‗‘
‗‘ Malaysia has gained reputation as one of the
preferred locations for medical tourism and
healthcare tours by virtue of its highly efficient
medical staff and modern healthcare facilities. ―
18. SWOT Analysis
Strengths :
Low cost of production.
Large pool of installed capacities.
Efficient technologies for large number of Generics.
Large number of skilled technical man power.
Increasing liberalization of govt. policies .
Weakness :
Fragmentation of installed capacities.
Low technology level of Capital Goods of this section.
Non-availability of major intermediaries for bulk drugs
Very low key R&D
Low share of India in World Pharmaceutical Production (1.2% of world production but having
16.1% of world''s population)
Very low level of Biotechnology in India and also for New Drug Discovery Systems.
Low level of strategic planning for future and also for technology forecasting.
19. Opportunities :
Aging of the world population
Growing incomes.
Growing attention for health.
New diagnoses and new social diseases.
Spreading prophylactic approaches.
New therapy approaches.
Spreading use of Generic Drugs
Globalization
Threats :
Containment of rising health-care cost.
High Cost of discovering new products and fewer discoveries.
High entry cost in newer markets.
High cost of sales and marketing.
Switching over form process patent to product patent.
20. CONCLUSION
The Indian healthcare sector can be viewed as a glass
half empty or a glass half full. The challenges the
sector faces are substantial, from the need to
improve physical infrastructure to the necessity of
providing health insurance and ensuring the
availability of trained medical personnel with the
opportunities available equally.