HEALTH SECTOR

Health sector in India• India has 48 doctors per 100,000 persons which is fewer than in developed nations

• Wide urban-rural gap in the availability of medical services: Inequity

• Poor facilities even in large Government institutions compared to corporate hospitals (Lack of

funds, poor management, political and bureaucratic interference, lack of leadership in medical

community)

• Expenditure on health by the Government continues to be low. It is not viewed as an investment but

rather as a dead loss!

• States under financial constraints cut expenditure on health

• Growth in national income by itself is not enough, if the benefits do not manifest themselves in the

form of more food, better access to health and education: Amartyo K Sen

• Private practitioners and hospitals major providers of health care in India

• Practitioners of alternate systems of medicine also play a major role

• Concerns regarding ethics, medical negligence, commercialization of medicine, and incompetence

• Increasing cost of medical care and threat to healthy doctor patient relationship

Current Trends in Health Sector1. Govt. Initiatives.2. The private sector takes the lead3. Involvement of health insurance4. Standardization – need for uniformities5. Manpower: Reversing the Brain Drain6. Technology takes centre stage7. The Empowered Indian Patient8. Public Private Partnership (Ex-Gujarat Govt.)

9. Medical value travel (the hype and the reality)

10. SEZ (The Hidden Opportunity)

11. Infusion of Private Equity: An unmistakable sign of Growth

Major players• All India institute of medical science (AIIMS),

New Delhi.• Apollo Hospital, Chennai• Christian medical college, Vellore• Lilavati hospital, Mumbai• Sankar Netralaya, Chennai• Jaslok hospital, Mumbai• L.V. Prasad Eye institute, Hyderabad• PGIMER ,Chandigarh• Wockhardt hospitals limited• Fortis healthcare

A day in hospital:

Strengths India is very well placed to tap the growing potential of the

healthcare sector. It has the relevant skill-sets with adequate human resources to become the preferred healthcare player in emerging countries across the globe.

Increasing urbanization, superior demographics, better health consciousness and higher life expectancy has enhanced the demand for quality healthcare.

Lower delivery cost. World class facilities. Rising number of uninsured in Developed countries. Holistic approach-Homeopathic, Allopathic, Ayurvedic.

Cost of Key HealthCare Procedures

Currency: USD US Thailand India India healthcare cost-% of US

Cardiac surgery 50,000 14,250 4,000 12.5

Bone marrow transplant 62,500 62,500 30,000 13.33

Liver transplant 500,000 75,000 45,000 11.11

Orthopaedic surgery 16,000 6,900 4,500 3.56

Source: IBEF Research

Weaknesses

Increasing cost of curative medical services.

High tech curative services not free even in government hospitals.

Limited health benefits to employees.

Health insurance expensive.

Curative health services not accessible to rural populations.

Inadequate availability of skilled doctors and staffs.

Limited number of quality medical institutions.

Lack of R & D.

Opportunities Healthcare industry is the world's largest industry with total revenues of

approx US$ 2.8 Trillion (2005). India's high population makes it an important player in the Healthcare

Industry. According to the IRDA, the Indian healthcare industry has the potential to show the same exponential growth that the software industry showed in the past decade.

With increasing number of non-insured population in western countries and increasing healthcare expenditure to GDP resulting in people to opt for treatment options out side their country.

Medical Tourism in India will be one of the major sources for foreign exchange.

Gradual corporatisation during the last decade. Direct Investments (FDI) has been allowed in this sector with automatic

approval up to 51%. FDI is going to be allowed in health insurance within 12 to 18 months.

Threats In India, 80% of the healthcare expenditure is borne by the

patients and that borne by the state is 12%. The expenditure covered by insurance claims is 3%. As a result, the price sensitivity is quite high and the high-level healthcare facilities are not in the reach of patients.

Poor public infrastructure. Inflation. Medico legal jurisdictions. Country specific restrictions. Organ trafficking. Require equipments is too high in cost.

Marketing Challenges Existing infrastructure for health care needs to be strengthened.

Education, safe water and sanitation need priority.

Vaccination coverage to be improved in rural areas.

Educating rural people to choose science over superstitution.

Better implementation of national health programs.

Judicious use of the scant resources by promoting most cost-effective

strategies for disease prevention.

The challenge of caring for a billion.

Promoting healthy life style from early life is a ‘no cost’ intervention

which needs to be incorporated in school curricula. There is need for

increasing public awareness of the benefits of healthy life style.

Conclusion