Changing Pulse of Indian Healthcare Industry

Indian Healthcare Industry

Healthcare has become one of India’s largest sectors – both in terms of income, employment and is anticipated to grow a salubrious rate on account of the coverage, penetration, services and spending in both public and private medical sectors. Healthcare comprises hospitals, medical devices, clinical trials, telemedicine, medical tourism, health insurance and medical equipment. Indian healthcare delivery model is arranged into two major components – public and private share.

The public healthcare run through government which constitutes limited secondary and tertiary care institutions in key cities and concentrates on providing basic healthcare facilities in the form of primary healthcare centers (PHCs) in rural areas. The other one maintained by non government parties provides majority of secondary, tertiary and quaternary care institutions with a major concentration in metro, tier I and tier II cities.

Market Size:

The Indian healthcare sphere will grow from $78.6 billion in 2012 to $158.2 billion in 2017, the healthcare sphere that sprang from $45 billion in 2008 to $78.6 billion in 2012 to be predicted to touch $158.2 billion by 2017, business report from Equentis Capital. Healthcare delivery, which includes hospitals, nursing homes and diagnostics centers and pharmaceuticals, constitutes 65 % of the overall market.

As per report from PriceWaterHouseCoopers,”India needs 600,000 to 700,000 additional beds over the next 5 to 6 years, indicative of an investment possibility of US$ 25-30 billion. Given this need for capital, the number of transactions in the healthcare segment is anticipated to see an increase in near future. The average investment size by private equity funds in healthcare chains has already enhanced to US$ 20-30 million from US$ 5-15 million”.

Evolution: how healthcare professionals benefiting?

There is wonderful opportunity for medical care professionals (physicians, specialty practitioners,emergency medicine specialists,surgeons,nurse and paramedic professionals) who are qualified, trained and skilled. As new areas of medical services are coming forth very fastly for e.g.: home-based healthcare has become one of the most sought services in India.

Large, small healthcare providers and major hospital groups are looking for healthcare professionals (physiotherapists, geriatricians, oncologists,paediatricians,cardiologists, endocrinologists and etc) who can work under their brands providing personalised home healthcare.

Investments:

The hospital and diagnostic centers attracted Foreign Direct Investment (FDI) worth US$ 3.21 billion between April 2000 and September 2015, according to data released by the Department of Industrial Policy and Promotion (DIPP).

Some of the major investments:

  • Apollo Hospitals Enterprise plans to add another 2,000 beds over the next two financial years, at a cost of around Rs 1,500 crore (US$ 225.28 million).
  • Malaysia-based IHH Healthcare Berhad has agreed to buy 73.4 per cent stake in Global Hospitals Group, India’s fourth-largest healthcare network, for Rs 1,284 crore US$ 192.84 million.
  • Temasek Holdings Pte Limited acquired the entire 17.74 per cent stake of Punj Lloyd Limited in Global Health Private Limited, which owns and operates the Medanta Super Specialty Hospital in Gurgaon.
  • CDC, a UK based development finance institution, invested US$ 48 million in Narayana Hrudayalaya, a multi-speciality healthcare provider. With this investment, Narayana Health will expand affordable treatment in eastern, central and western India.
  • Apollo Health and Lifestyle Limited,acquired Nova Specialty Hospitals at an estimated cost of Rs 135-145 crore (US$ 20.3-21.8 million).
  • IHH Healthcare Berhad acquired a controlling 51 per cent equity stake in Hyderabad-based Continental Hospitals Limited for about approximately US$ 45.4 million.
  • Carlyle Group acquired a stake in Metropolis Healthcare Limited, an operator of pathology laboratories in India, for an undisclosed sum.
  • Home healthcare service provider Portea Medical has raised Rs 247 crore (US$ 37.5 million) in Series-B funding from investors including Accel Partners, International Finance Corporation, Qualcomm Ventures and Ventureast.
  • Attune Technologies Private Limited has raised US$ 10 million in a Series B funding from Qualcomm Ventures and Norwest Venture Partners in order to expand its digital healthcare solutions from the current 200 hospitals and laboratories to 25,000 such facilities globally.

Government Initiatives:

India’s universal health plan that aims to offer guaranteed benefits to a 6th of the world’s population will cost an estimated US$ 24.03 billion over the next 4 years.

Some of the major initiatives by the Government of India :

  • A unique initiative for healthcare ‘Sehat’ (Social Endeavour for Health and Telemedicine) has been launched at a government run common service centre (CSC) to empower rural citizens by providing access to information, knowledge, skills and other services in various sectors through the intervention of digital technologies and fulfilling the vision of a ‘Digital India’.
  • India and Sweden celebrated 5 years of Memorandum of Understanding (MoU). The cooperation in healthcare between India and Sweden will help in filling gaps in research and innovative technology to aid provisioning of quality healthcare.
  • Union Minister for Health & Family Welfare of India has launched the National Deworming initiative aimed to protect more than 24 crore children in the ages of 1-19 years from intestinal worms, on the eve of the National Deworming Day.
  • Under the National Health Assurance Mission, the Indian government would provide all citizens with free drugs and diagnostic treatment, as well as insurance cover to treat serious ailments.
  • Mission Indradhanush launched by Indian Health ministry aims to immunise children against 7 vaccine preventable diseases namely diphtheria, whooping cough, tetanus, polio, tuberculosis, measles and hepatitis B by 2020.
  • The E-health initiative, which is a part of Digital India drive launched and aims at providing effective and economical healthcare services to all Indian citizens. The programme aims to make use of technology and portals to facilitate people maintain health records and book online appointments with various departments of different hospitals using eKYC data of Aadhaar number.

Road a Head

There are huge opportunities for investment in healthcare infrastructure and India indicating the most important destinations for advanced diagnostic services with enormous investment for forward-thinking diagnostic facilities, also with the elderly population growing in an exponential manner in India, medical services at home is going to be as a bigger growth. According to few reports, India’s elderly population is predicted to touch 323 million, making up 20 % of the total population, by 2050. Also India’s population in the age of 60 and above is foreseen to increase in a very impressive manner, from just 8% in 2010 is expected to touch 19 % in 2050. This growing percentage indicates there would be a huge growth and demand in homecare services as hospitals in India would not be able to exclusively provide to this segment of geriatric population. Many aged patients would require home based medical assistance in some or the other form and majority of these patients would be geriatric people, post-operative care, physiotherapy, cancer treatment patients in the middle age group and younger patients would also require home based healthcare services.

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