Health Care Industry
HEALTH CARE INDUSTRY - LANDSCAPE
Contents
Introduction 1
Changing disease patterns: Implication for healthcare infrastructure 8
Building Functional Efficiencies 16
Conclusion 20
Introduction
The Healthcare sector, in India, is at an inflection point and is poised for rapid growth in the medium term. However, Indian healthcare expenditure is still amongst the lowest globally and there are significant challenges to be addressed both in terms of accessibility of healthcare service and quality of patient care. While this represents significant opportunity for the private sector, the Government can also play an important role in facilitating this evolution.
Current State of Healthcare in India
Current Size of the Healthcare Industry
The Indian Healthcare sector currently represents a USD 40 Billion industry. A break-up of the sector as of 2009 is provided:
Source: IDFC Securities Hospital Sector November 2010
India’s healthcare spend is significantly low when compared to the global, developed and other similar emerging economies. To further illustrate this point, we have examined the Indian healthcare spend on various parameters. The Indian healthcare spend is less than half the global average in percentage terms when compared on a “percent of GDP” basis.
Source: WHO World Health Statistics 2010
The healthcare spend, when compared on the basis of public-private contribution, also depicts a skewed picture. As is noted from the comparison below, Private Sector contribution to the healthcare sector at ~75 percent is amongst the highest in the world in percentage terms. Public spending, on the other
Contents
Introduction 1
Changing disease patterns: Implication for healthcare infrastructure 8
Building Functional Efficiencies 16
Conclusion 20
Introduction
The Healthcare sector, in India, is at an inflection point and is poised for rapid growth in the medium term. However, Indian healthcare expenditure is still amongst the lowest globally and there are significant challenges to be addressed both in terms of accessibility of healthcare service and quality of patient care. While this represents significant opportunity for the private sector, the Government can also play an important role in facilitating this evolution.
Current State of Healthcare in India
Current Size of the Healthcare Industry
The Indian Healthcare sector currently represents a USD 40 Billion industry. A break-up of the sector as of 2009 is provided:
Source: IDFC Securities Hospital Sector November 2010
India’s healthcare spend is significantly low when compared to the global, developed and other similar emerging economies. To further illustrate this point, we have examined the Indian healthcare spend on various parameters. The Indian healthcare spend is less than half the global average in percentage terms when compared on a “percent of GDP” basis.
Source: WHO World Health Statistics 2010
The healthcare spend, when compared on the basis of public-private contribution, also depicts a skewed picture. As is noted from the comparison below, Private Sector contribution to the healthcare sector at ~75 percent is amongst the highest in the world in percentage terms. Public spending, on the other