Citizens form the backbone of a countrys economy. A developed nation is characterised by its healthy citizens. Therefore, healthcare should be a major thrust area in Indias five year plan. Nitika Narvekar, ENN, explores the healthcare opportunities in the country
India is a country with a billion plus population. Providing affordable healthcare to a huge population is a big challenge for the medical sector. The healthcare sector has been growing by leaps and bounds and will continue to do so over the next decade.
With new government at the centre, healthcare industry is expected to boom alongside new milestones which are to be achieved over the next few years. The latest trends in the medical health sector portend huge growth potential.
The future of the health industry seems to be bright and can be one of the drivers for growth of the Indian economy. The Indian healthcare industry, growing at a CAGR of 15 percent, is expected to touch US$ 250 billion by 2020.
The domestic healthcare sector is poised to touch US$ 100 billion by 2015 and US$ 275.6 billion by 2020, ac cording to industry estimates. There is an immense scope for enhancing healthcare services penetration in India, which presents ample opportunity for development of the healthcare industry.
Of the total healthcare revenues in the country, hospitals account for 71 percent, pharmaceuticals for 13 per cent and medical equipment and supplies for 9 percent. The private sector has emerged as a vibrant force in Indias healthcare industry. Its share in healthcare delivery is expected to increase from 66 percent in 2005 to 81 percent by 2015.
In 2013, healthcare and life sciences emerged as the second favourite destination for venture capital after technology, attracting 27 investments worth US$ 181 million, according to research firm Venture Intelligence.
The hospital and diagnostics centre in India received foreign direct investment (FDI) worth US$ 2,191.91 million, while drugs & pharmaceutical and medical & surgical appliances industry registered FDI worth US$ 11,583.69 million and US$ 741.80 million, respectively during April 2000 to December 2013, according to data provided by the Department of Industrial Policy and Promotion (DIPP).
The metro cities are strengthening quality healthcare whereas the smaller towns are also emerging as potential destinations in the health sector. Government ideologies are playing a major role in deciding the countrys health policies. Public-private partnerships are adding to the development of health sector.
Medical tourism is a booming phenomenon in countries like India. Medical tourists choose India as their favourable destination because of the key opportunities in Indian healthcare sector in the form of efficient infrastructure and technology.
Medical tourism also referred as medical travel, health tourism or global healthcare is a term used to describe the rapidly-growing practice of travelling across international borders to seek healthcare services. Health tourism includes segments such as multi-specialty hospitals, Ayurveda, holistic medicine centres and health spas adventure tourism and eco-tourism providers.
Services typically sought by travelers include elective procedures as well as complex surgeries, etc.
Majority of these tourists come to Indian shores seeking liver transplant, heart surgeries like bypass or pacemaker, bone marrow transplant, hip replacement, knee replacement, eye surgeries, etc. Indian expertise in conducting these surgeries with most advanced technology is at par or sometimes even beyond comparison with its American or European counterparts.
Medical tourists visiting India are anticipated to touch 3,200,000 by 2015 and medical tourism is expected to grow at an annual rate of 30 percent till 2015.
“Of the total healthcare revenues in the country, hospitals account for 71 percent, pharmaceuticals for 13 percent and medical equipment and supplies for nine percent”
The government has also taken up several initiatives like the Rajiv Gandhi Jeevandaye Yojna, National Rural Health Mission (NHRM) and National Urban Health Mission (NUHM) to improve the healthcare delivery in the country.
Our Prime Minister Narendra Modi in one of his speeches said that we should focus on health rather than focusing on sickness. Not only did he mention about providing healthcare to everyone but also emphasized on the increasing role of technology and innovation in the health sector.
Drivers of growth
The health sector is growing because of increasing life expectancy, new innovations and research, high-disposable income, greater penetration of insurance and also life style changes. There has been a flood of medical tourism and medical education in the country.
India is a land full of opportunities for players in the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep.
Most Indian metros have hospitals with world-class infrastructure, processes and outcomes. However, 70 percent of the healthcare infrastructure is confined to the top 20 cities of India. In order to reach the remaining population, innovations both in healthcare products and delivery are required.
The surge of new players and the further penetration of stalwarts into the industry have created a galaxy of leaders in the healthcare industry.
As a series of special focus section, this issue of eHealth explores the new models of healthcare emerging across the country from the point of view of the stalwarts of the healthcare sector. We have through a series of interactions, uated the work done by various sectors of this industry.
An outcome of the urge to look at the emerging models of secondary and tertiary healthcare and the 360 degree growth of health industry, we were obliged to come up with an occasion like Maharashtra Healthcare Leadership Awards and Summit, so that we can create a vibrant platform for hospitals, government, corporate and academia to share success stories, challenges and opportunities in Maharashtra.
The summit is a part of our effort to appreciate and recognize the achievers, innovators and suppliers who have significantly contributed towards the growth and development of health sector in the state of Maharashtra.