The Indian Healthcare Industry. DIBD India
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1 The Indian Healthcare Industry DIBD India
2 Introduction to the Healthcare Industry Current Market Overview Survey of The Indian Hospital Sector Opportunities
3 Current Market Overview Big Market, showing rapid growth Expected to reach USD $280 BN by 2020 Factors suggesting increased demand in healthcare: 1. Population increase of million per year 2. Significant improvement in living standards Current healthcare sector USD $72.6 BN Expected to reach USD $100 BN by 2015 Growth is projected at approx 20 % per year
4 Current Market Overview During the past decade there has been a great change in the availability of healthcare facilities. Public hospitals: 67% increase Hospitals in 2000: 4600 Hospitals in 2006: 7600 Private hospitals: Pace similar to public hospitals. Private healthcare boasts of superior quality and facilities. It accounts for 40% of hospitals and more than 65% of primary care. This results in personnel shortages in the public sector.
5 Current Market Overview Huge difference in the standards of service and physical facilities between private and public hospitals. Private hospitals: Comparatively more expensive and targets only middle and upper class people with healthcare insurance. Attracts highly educated personnel, have better facilities and are far more efficient and clean compared to public hospitals. Top surgeons work at private hospitals and many of them run the hospitals more efficiently by applying disciplined business principles towards the management of the hospital. Many private hospitals in India are affiliated with top world medical institutes like Harvard Medical and Johns Hopkins.
6 Current Market Overview Population living in rural India: 70% However facilities & care: Doctors in urban India 80% Dispensaries in urban India 75% Hospitals in urban India 60% Overcrowded public hospitals are a continuous problem and finances remain inadequate for providing extra beds and facilities. The situation is perpetuated by low government spending on health, despite the fact that the majority of the population is forced - by low income - to use public facilities. The Federation of Indian Chambers of Commerce and Industry (FICCI) believes it would cost approximately USD $200 BN over the next five years to solve the crisis in Indian healthcare..
7 Growth potential DIBD India
8 Internal Survey Of The Indian Hospital Sector The DIBD office in India conducted a small internal survey of the hospital sector in India. Five of the biggest hospitals in Mumbai and five of the biggest hospitals in New Delhi: Mumbai Wockhardt Hospital TATA Memorial Hospital Kokilaben Reliance Hospital Bombay Hospital Hinduja Hospital New Delhi Indrapastha Apollo Paras Hospital Yashoda Hospital Max Healthcare Fortis Escort The primary data is supported by secondary data from relevant and recent reports and surveys. The findings from the interviews and the secondary data highly correlate to each another. The findings are summarized in the matrix given on next slide.
9 Findings From Internal Survey India Mumbai New Delhi No. of private hospitals 3228 Approx.100 No. of public hospitals No. of beds per patient 7 beds per 10,000 patients 20 beds per 10,000 patients No. of doctors per patient N/A 1 doctor per 2.5 patient 1 doctor per 2.2 patient No. of patients admitted in hospital per day No. of patients admitted in ICU per day per major hospital No. of major operations performed per day No. of ambulances in major hospitals N/A N/A N/A N/A 3 4
10 Oppurtunities In The Healthcare Sector Additional 1.75 millions bed required by 2025 to achieve target of 2 beds/ 1000 population Additional 700,000 doctors required by 2025 to reach ratio of 1 doctor/ 1000 population To maintain current doctor to nurse ratio of 2.2, an additional 1,600,000 nurses will have to be trained by 2025 Medical tourism growth was 25% p.a. in last few years and expected to reach USD $3BN by 2013 With average age increasing, from 4% in 2010 to 6% in 2020, healthcare spending is projected to rise
11 Want To Know More... Want to get more hands-on knowledge about the growing market opportunities for Danish companies in the huge yet complex Indian market... DIBD offers two points-of-contacts: Anders Kjøller Manager, DI Copenhagen E: P: (+45) M: (+45) Kunal Singla Director, DI India E: P: (+45) M: (+91) Anders works as Manager with focus on Asian markets in DI. He has over 10 years of project experience from projects in Asia. Anders has over 4 years of hands-on experience in the field from the Chinese market gained as Director of DI s office in Shanghai ( ). Experience from several projects within the marine, food and utility industries amongst others with business development, market studies, implementation of market entry strategies as well as implementation of distributor management. Anders has a M.Sc. Economics & M.A. East Asian Studies. As the director of DIBD s office in Mumbai, Indian-Danish Kunal is the man on the ground in India. Kunal has substantial hands-on experience with various projects (including partnership searches etc.) and recruitment in India. Kunal also has previous experience from the Commercial Department at the Royal Danish Embassy in New Delhi, and DI s Business Law department in Copenhagen. Kunal is fluent in Danish, English and the Indian national language Hindi, and has an extensive network in the Indian business community. Kunal holds a M.Sc. in Business Administration and Commercial Law from Copenhagen Business School, and has studied in the United States and China.
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