Privateinvestmentmajorcontributiontohealthcare the

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Unformatted text preview: ibution to Healthcare The private and public investment is roughly in the ratio of 80:20 respectively. With regards to healthcare and services spending, 62% is self-sponsored. The Government contributes 24%, employer provides for 9% and only 5% comes through insurance. This is dismal, when I discover that only Rs 250 crore is being collected for health insurance, whereas life insurance gets Rs 25,000 crores and even non-life items get Rs 9,000 crores towards insurance. Varied health institutions and mixed ownership patterns. 4 Trends Impacting Healthcare in India There is also a strong demand for tertiary care hospitals, which focus on treatment of lifestyle diseases and specialities like neurology, cardiology, orthopaedics and oncology. Owing to the accelerated growth of lifestyle diseases and medical tourism, tertiary care givers are set to grow faster than overall healthcare sector. 5 The Stakeholders: The healthcare ecosystem is huge, often merging with other sectors. The stakeholders are mapped below. Fig2. Stakeholders in the Healthcare Industry 6 Market Segments and Size The Indian Healthcare Pie Chart 2: Indian Healthcare Pie Source: IBEF Report, 2007 Hospitals Market : Current Growth Rate Drivers & Challenges Rs. 25 billion in 2008 13% CAGR Drivers: Challenges: Demand-supply gap Capital intensive business Prevalence of chronic diseases Building healthcare infrastructure Preference for private treatment Trends Players are exploring tier II and tier III towns due to tax holidays for 5 years Rising FDI inflows and Private Equity Investments Development of tertiary care units with complex ailments rising. It is estimated that there are more than 15,000 hospitals operating in the country, of which 30 % are in public sector. However, number of beds in the public sector is almost 4 times that in the private sector. Medical Equipment Market: Market : Current US $ 5 billion (Source: IBEF) Growth Rate Drivers & Challenges 15% per annum Drivers: Increasing healthcare spend Increasing hospital infrastructure Challenges: Lack of consumer awareness Public-Private Partnerships Increasing Medical Tourism in India Trends Outsourcing/relocating of manufacturing facilities Increased joint ventures and tie-ups 7 The industry is one of the thriving segments of the healthcare sector in India and with large scale imports. However, interests of the Government, as...
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This document was uploaded on 01/14/2014.

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