Future of Healthcare in India and Globally

1. By: Ashish Sharma
I am ONN
ashish.sh30@gmail.com

2. Health care
Health care or healthcare is the maintenance or improvement of health
via the diagnosis, treatment, and prevention of disease, illness, injury,
and other physical and mental impairments in human beings.

3. The Healthcare Market Functions
Through Five Segments

4. Industry Outlook - INDIA
• Spending on health care in India was an
estimated 5% of (GDP) in 2013 and is expected
to remain same at that level through 2016.
• Total health care spending is projected to rise at
an annual rate of over 12 %, from an estimated
$96.3 billion in 2013 to $195.7 billion in 2018.
• India presently has a bed deficit of
approximately 30 lakhs beds as per the WHO
recommendation of seven beds per 1000
population.
• Considering even a 250 bedded hospital on an
average, the country would need 12000 hospitals
in the near future. As almost 80 per cent of this
would be fulfilled by the private players.

5. Industry Outlook - INDIA
• India’s public health care system is patchy, with underfunded and overcrowded
hospitals and clinics, and inadequate rural coverage.
• Reduced funding by the Indian Government has been attributed to historic
failures on the part of the Ministry of Health and Family Welfare (MHFW) to spend
its allocated budget fully.
• This is despite increasing demand, due, in part, to growing incidence of age- and
lifestyle-related chronic diseases resulting from urbanization, sedentary lifestyles,
changing diets, rising obesity levels, and widespread availability of tobacco
products.
• India’s health care sector witnesses close to 50 percent spend on in-patient beds
for lifestyle diseases, especially in urban and semi-urban pockets.

6. Strong Growth In Healthcare Expenditure
Over The Years
• Healthcare has become one of India's largest
sectors both in terms of revenue and
employment.
• During 2008-2020, the market is expected to
record a CAGR of 17%
• The total industry size is expected to touch
USD160 billion by 2017 and USD 280 billion by
2020.
• As per the Ministry of Health, development of 50
technologies has been targeted in the FY16, for
the treatment of diseases like Cancer and TB

7. Private Sector Has A Strong Presence In India’s
Healthcare Sector
Shares in healthcare spending
in India, 2005
Shares in healthcare spending
in India, 2015

8. Key Players In The Market

9. Trends In The Indian Healthcare Sector
• With increasing urbanization and problems related to
modern-day living in urban settings, currently, about
50 percent of spending on in-patient beds is for
lifestyle diseases.
Shift from
communicable
to lifestyle
diseases
• There is substantial demand for high-quality and
specialist healthcare services in tier-II and tier-III
cities
• To encourage the private sector to establish hospitals in
these cities, the government has relaxed the taxes on
these hospitals for the first five years.
Expansion to
tier-II and tier-
III cities

10. Industry Outlook - Global
• Health spending is estimated to have increased by 2.8 percent in 2013 — an uptick from two
percent in 2012 — to total $7.2 trillion, or 10.6 percent of global gross domestic product
(GDP).1 As the global economy recovers from prolonged recession, health spending is
expected to accelerate, rising an average of 5.2 percent a year in 2014-2018, to $9.3 trillion
• This increase will be driven by the health needs of aging and growing populations, the rising
prevalence of chronic diseases, emerging-market expansion, infrastructure improvements, and
treatment and technology advances

11. Industry Outlook - Global
• Despite an overall focus on cost containment, some markets are projected to
experience rapid spending growth as public and private health care systems
develop. This expansion in developing markets — especially in Asia and the
Middle East — may bring opportunities for international hospital chains,
pharmaceutical and medical technology companies seeking geographic and
revenue growth. Globalization, however, is likely to bring problems, too, as
countries struggle to make sure they have sufficient health care workers,
facilities, and supplies to care for patients at a manageable cost

12. Balance Between Young and Old

13. Medical Tourism is Already Here…

14. Access to Care

15. Global health care sector Issues
•Cost is the biggest health care issue
facing most countries in 2015. Pressure
to contain costs and demonstrate value
is coming from all sides
•Competition for talent – As their
populations and health care needs grow
both developed and developing
countries are struggling to supply
adequate numbers of trained, qualified
health care professionals, especially
physicians and nurses.

16. Global health care sector Issues
• The global health care regulatory
landscape is complex and evolving.
• The primary driver is patient health
and safety; however authorities’
approaches to protecting patients
can vary widely from country to
country.
• Adding to this complexity are factors
including rapid clinical and
technology changes; increased
scrutiny by governments, the media,
and consumers; more sophisticated
risk-monitoring techniques; and
coordination across agencies and
regions.