healthcare industry india overview and city comparison
DESCRIPTION
This deck provides an overview of the healthcare delivery sector in India and a comparison between four cities: Ahmedabad, Chennai, Kolkata, Pune. IT covers the size of the sector, the growth rate, the drivers and various healthcare indicators.TRANSCRIPT
Hello
How you doing?
Healthcare Delivery Industry
in India
let’s talks about
Healthcare Delivery
is a fancy term for provision of healthcare
Healthcare Delivery
is a fancy term for provision of healthcare that includes:
Pharmacies
Hospitals/
ClinicsLabs
Healthcare Delivery
is a fancy term for provision of healthcare that includes:
Pharmacies
Hospitals/
ClinicsLabs
CONTENTS
Overview
City-wise comparison
Closing titles
References
OVERVIEW
FASTEST
one of the
22.8
34.2
37.6
41.4
45.5
50
79
2005 2006 2007 2008 2009 2010 2012e
growing sectors
Healthcare industry revenues in USD bn
DELIVERY
91% moolah raked in by
Contribution of various segments (%)
71
13 3
9 4 100
Hospitals Pharmaceuticals Diagnostics Medical suppliesand equipment
Medicalinsurance
Total
Healthcare Delivery
Technology
An industry driven by…
better technology that promotes minimally invasive surgeries and ambulatory servicecenters, both of which are encouraging demand while simultaneously resulting in bettersupply. Better technology also promotes telemedicine, which the government and MCITare pushing fore the rural population.
Technology
Investments
An industry driven by…
high investments. In 2010, the healthcare sector saw PE investments of USD 320.4bn.There were 57 Mergers & Acquisitions worth USD 6.2bn in the same year. One of thereasons for increasing investments in the sector is government encouragement…
Technology
Investments
Government
An industry driven by…
…in the form of reduced customs duty on life saving equipment, tax benefit for largehospitals, and allowance of 100% FDI in hospitals. The government is also increasing itsown spending and plans to spend 2.5% of GDP in the 12th 5-year plan.
Technology
Investments
Government
Growing
Demand
An industry driven by…
Growing demand is a result of various factors, including better healthcare awareness,increasing lifestyle related diseases, rising levels of disposable incomes and medical tourism.
MISERS!
but we spend like
USA
Brazil
China
Annual per capita spending on healthcare* (USD)
*by the government and private sector combined
India’s health expenditureper capita (USD)
22.1
54.2
20
30
40
50
60
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10
MORE & MORE
and although we are spending
on healthcare every year…
14.2
2.1
7.8
17.1
27.7
6.5
2.1
Number of physicians per 10,000 population
Number of beds per 1000 population
3
1.7
1.2
3.9
5.6
0.9
LAG WOEFULLY
…in key indicators we
behind developed nations
Spending on healthcareas a percentage of GDP
2.7 3 2.7 2.8
4.8
2.9
5.5
1.91.7
3.3
7.7
1.3
GovtSpending
PrivateSpending
OPPORTUNITY
which creates a huge
for private players
Year after year, the government spendingfalls way short of requirement. This opensthe doors for private investors. As the graphreveals, private players spend more thantwice the amount spent by the government,every year.
CITY-WISE COMPARISONS
CITY-WISE COMPARISONS
I have compared data from four Indian metros: Ahmedabad (AHD), Chennai
(CHN), Kolkata (KOL) and Pune (PUN). The following type of hospitals have
not been considered:
1. Non-allopathic hospitals
2. Consultation clinics
3. Non-ophthalmology clinics with no beds
Data on cities acquired from RedSeer Consulting Pvt. Ltd., a research and
consulting firm in Bangalore.
JUST DANDY
urban India is doing
0.83
1.41
1.22
1.68
Global Avg
0.62
Indian sub-continent Avg
0.13
2.29
4.06
4.74 4.49
Global Avg
3.0
Indian Avg
0.9
Number of beds per 1,000 population
Number of OTs per 10,000 population
overall
VARIATION
but there is huge
5%
11%
18%
9%
1%
2%
3%
1%
31%
59%
60%
39%
63% 28% 19% 41%
Small Single Specialty
Small Multi Specialty
Large Single Specialty
Large Multi Specialty
across metros
Distribution of types of hospitals
VARIATION
but there is huge
across metros
3132
24
16
79
83
78
47
67
60
66
53
63
46
53
34
AHD CHN KOL PUN
Hospitals offering various facilities (%)
VARIATION
but there is huge
across metros
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Rupees
200-500
500+
100-200
0-100
Average maximum bed prices by city and bed range
Total number
of beds
The size of the bubbles represents the totalnumber of beds present in a city in hospitalsin a certain bed range. The position of thebubbles represents the average maximumbed price for hospitals in that range.
VARIATION
but there is huge
across metros
Percentage of hospitals offering various specialties
42
35
20 20
31
71
65
40
46
51
75 76
6157
66
58 58
30
39
49
AHD CHN KOL PUN
CLOSING TITLES
CLOSING TITLES
Healthcare industry is one of the fastest growing sectors in India.
However, the gap between urban and rural India is vast. The biggest
private sector investments in the coming years are bound to happen in
Tier-II and Tier-III cities.
DISCLAIMER
This is an independent study performed by Sanket Baxi.
Data have been taken from various sources, including reports and
whitepapers by consulting firms (see references on next slide). These
firms are not affiliated with me, nor have any of them commissioned this
study.
The sources of data in this presentation may not necessarily subscribe to
any/all of the views in this presentation or agree with any/all of the data
mentioned and the inferences drawn from them.
References
Websites
www.ibef.org
www.indianhealthcare.in
www.irda.gov.in
http://economictimes.indiatimes.com/Starting_Up/Vaatsalyas_hub-and-
spoke_model_delivers_affordable_healthcare/articleshow/3169942.cms
Various media
Reports and Whitepapers
Hospital Sector Overview (whitepaper) – RedSeer Consulting
World Health Statistics 2012 – WHO
Indian Healthcare Industry: Sustainable Growth - Harneedi
Emerging Trends in Health Care, 2011 - KPMG
Improving Healthcare Delivery in India, 2009 - by Abhijit Banerjee and Esther Duflo
