Health Sector

COUNTRY

LIFE EXPECTANCY

CHINA

84.69

JAPAN

82.19

AUSTRALIA

81.32

INDIA

69.89

WANNA LIVE MORE? BETTER WATCH THIS OUT!!

SECTOR IN INDIA

GLOBAL HEALTHCARE SECTOR: AN OVERVIEW •

•

World’s 2nd largest business sector

Global healthcare revenue US$ 2.8Trillion

INDIAN HEALTHCARE SECTOR • VALUED AT US$ 34BILLION • ANNUAL GROWTH OF 13% • CONSTITUTES 6% OF THE GDP

HEALTHCARE SEGMENTS • PUBLIC State owned Subsidized medicine Free of cost treatment • PRIVATE 80% market share

INDUSTRY SEGMENTS • HOSPITALS • PHARMACEUTICALS • MEDICAL TOURISM

HOSPITALS • MORE THAN 16000 HOSPITALS • MORE THAN 9 LAKH BEDS • GROWTH RATE OF 10-20%

MARKET PLAYERS

PHARMACEUTICALS • ONE OF THE FASTEST GROWING MARKETS IN THE WORLD • ANNUAL GROWTH OF 17.5% • CATERS TO 95% OF COUNTRY’S NEEDS

MAJOR MARKET PLAYERS

MEDICAL TOURISM • WORTH US$ 1.2BILLION AND IS ESTD., TO REACH US$ 2.2BILLION BY 2012 • GROWTH RATE 12% PER ANNUM EXPECTED TO BE 30% BY 2012 • MEDICAL TOURISTS ACCOUNTS TO 2.72 LAKH PER ANNUM

MAJOR MARKET PLAYERS

FORECAST

GROWTH DRIVERS • RISING INCOME • GROWING MIDDLE CLASS • GROWING AND AGEING POPULATION • GROWING URBANIZATION • GROWING MEDICAL TOURISM • HEALTHCARE INSURANCE PENETRATION

SWOT ANALYSIS WEAKNESSES

STRENGTHS

• PRICE DESCRIMINATION

• COST EFFECTIVE • UNTAPPED MARKET • COMPETITIVE WORK FORCE

• INCOMPETENT PUBLIC SECTOR

•

LOW / CAPITA EXPENDITURE ($ 94)

SWOT ANALYSIS OPPOTUNITIES • POLICY MAKEOVER • MEDICAL TOURISM • USE OF IT

THREATS

ADVANTAGE INDIA • OVER 6,50,000 DOCTORS • HIGHLY SKILLED EXPERTS • EMERGING MAJOR R&D CENTRE • LOW COST DRUG DEVELOPEMENT

ADVANTAGE INDIA - CONTD., • SECOND HIGHEST NUMBER OF QUALIFIED DOCTORS IN THE WORLD • HIGHEST SUCCESS RATE IN CARDIAC SURGERY AND BONE MARROW TRANSPLANTATION • THE COST ADVANTAGE

US ($)

UK ($)

India ($)

Angioplasty

30000

21000-27000

4000-5000

Angiography

2500-3000

2000

400

19000

13000-16000

6000

27000-32000

16000-18000

6000

Procedure

Hip replacement Knee replacement CABG Lasik

6400

30000 2250-2900

400

MEDICAL EDUCATION • 230 MEDICAL COLLEGES • 106 PRIVATE COLLEGES • 29,000 DOCTORS QUALIFY ANNUALLY

80% OF THE MEDICAL FACILITIES ARE CONCENTRATED IN THE URBAN AREA WHILE 73% OF THE POPULATION RESIDES IN THE RURAL AREA

HEALTHCARE DEMAND

DEMAND Vs SUPPLY

HEALTHCARE INFRASTRUCTURE

THE ROAD AHEAD • IMPROVEMENT IN PHYSICAL INFRASTRUCTURE • IMPLEMENTATION OF TELEMEDICINE • COST EFFECTIVE CLINICAL TRIAL • EFFECTIVE PUBLIC PRIVATE PARTNERSHIP

RAHUL KAMAL KARTHIGA Department of Management Studies, School of Management, Pondicherry university