Friday, March 31, 2023

"Unleashing the Potential of Healthcare: Exploring the Growth Triggers for Hospital Sectors in India"

 Dr Madhav Madhusudan Singh

MBBS, MHA (AIIMS) , MBA (Finance), Ph.D. ( Hosp Mx)



Introduction

The healthcare industry in India is in need of growth triggers that can foster development, innovation and address the existing challenges. For instance, the increasing prevalence of chronic diseases such as diabetes, cardiovascular diseases, and cancer has led to a surge in demand for specialized healthcare services. To address this, the sector requires investments in technology and infrastructure, such as the adoption of digital healthcare solutions and telemedicine. Furthermore, government initiatives such as the National Health Policy 2017 and the Ayushman Bharat scheme can also act as growth triggers by improving the accessibility and affordability of healthcare services to the masses.

Growth Triggers for Hospital Sectors in India

The healthcare industry in India is one of the fastest-growing sectors and contributes significantly to the country's economic growth. However, the sector faces several challenges, including inadequate infrastructure, uneven distribution of healthcare facilities, and a shortage of skilled healthcare professionals. To overcome these challenges and fulfill the growing demand for healthcare services, the sector requires growth triggers that can spur development and innovation. In this article, we will discuss two of the most critical growth triggers for the hospital sector in India: the increasing demand for healthcare services and government initiatives and policies.

Increasing Demand for Healthcare Services

The increasing demand for healthcare services in India can be attributed to two major factors: rising population and growing middle class, and the increasing prevalence of chronic diseases.

Rising Population and Growing Middle Class

India has a population of over 1.3 billion people, and it is estimated to reach 1.5 billion by 2030. With such a massive population, the demand for healthcare services is enormous. Furthermore, with the rising middle class in India, people have more disposable income and are willing to spend more on healthcare services.


This growth trigger has led to the expansion of healthcare facilities and the development of specialized healthcare services such as cancer hospitals, cardiac care centers, and diabetes clinics. For instance, Apollo Hospitals, one of the largest healthcare providers in India, has established several specialized hospitals and clinics across the country. The company has also expanded its operations overseas, with hospitals in countries like Bangladesh, Mauritius, and Oman.

Increasing Prevalence of Chronic Diseases

The increasing prevalence of chronic diseases such as diabetes, cardiovascular diseases, and cancer has also contributed to the growing demand for healthcare services in India. According to the World Health Organization, non-communicable diseases account for 60% of all deaths in India. Furthermore, the burden of chronic diseases is expected to rise in the coming years, with an estimated 70 million people suffering from diabetes by 2025.



To address this, the sector requires investments in technology and infrastructure, such as the adoption of digital healthcare solutions and telemedicine. For instance, Narayana Health, one of the leading healthcare providers in India, has established telemedicine centers across the country. The company uses telemedicine to connect patients in remote areas with doctors and specialists in urban areas.

Government Initiatives and Policies

The government of India has introduced several initiatives and policies that can act as growth triggers for the healthcare sector. Let's discuss three of the most critical initiatives and policies: the National Health Policy 2017, the Ayushman Bharat scheme, and the Make in India campaign.

National Health Policy 2017

The National Health Policy 2017 aims to achieve universal health coverage and promote preventive healthcare. The policy sets out several targets, including increasing the healthcare expenditure to 2.5% of the GDP and ensuring access to free drugs and diagnostics in public healthcare facilities.


This growth trigger has led to the establishment of several healthcare facilities and the expansion of healthcare services across the country. For instance, Fortis Healthcare, one of the leading healthcare providers in India, has established several hospitals and clinics across the country.

Ayushman Bharat Scheme

The Ayushman Bharat scheme, launched in 2018, provides health insurance cover to vulnerable sections of the population. The scheme provides an insurance cover of up to INR 5 lakhs per family per year and covers over 10 crore families.


This growth trigger has led to an increase in the adoption of health insurance and the improvement of healthcare delivery in the country. For instance, Max Healthcare, one of the leading healthcare providers in India, has partnered with the Ayushman Bharat scheme to provide healthcare services to the underprivileged.

Make in India campaign

The Make in India campaign is a government initiative that aims to promote the development of the healthcare sector by encouraging foreign investment and the establishment of domestic manufacturing capabilities. This growth trigger has led to the development of several manufacturing units, such as medical equipment manufacturing units, pharmaceutical companies, and healthcare IT companies.


For instance, GE Healthcare has established a healthcare equipment manufacturing unit in India to cater to the growing demand for medical equipment. Similarly, the pharmaceutical company Biocon has established a biopharmaceutical manufacturing unit in India to cater to the growing demand for biopharmaceuticals.

Technological advancements

The healthcare sector in India is rapidly evolving, and technology is playing a crucial role in driving growth and innovation. In this article, we will discuss three growth triggers for the hospital sector in India, with a focus on technological advancements: adoption of digital healthcare solutions, telemedicine and remote healthcare, and medical tourism.

Adoption of Digital Healthcare Solutions

Digital healthcare solutions, such as electronic health records (EHRs), health information exchanges (HIEs), and mobile health (mHealth) applications, are becoming increasingly popular in India. The adoption of these solutions has the potential to improve patient care, increase efficiency, and reduce costs.


For instance, Max Healthcare, one of the leading healthcare providers in India, has implemented a cloud-based EHR system. The system allows doctors to access patient records from anywhere, reducing the need for physical records and improving the quality of care. Similarly, Fortis Healthcare has implemented a mobile app that allows patients to access their health records, book appointments, and receive medical advice remotely.

The adoption of digital healthcare solutions has also led to the development of healthcare startups that are using technology to improve healthcare delivery. For instance, Practo, a healthcare startup in India, has developed a platform that connects patients with doctors and healthcare providers. The platform allows patients to book appointments, access their medical records, and receive medical advice remotely.

Telemedicine and Remote Healthcare

Telemedicine and remote healthcare are emerging as critical growth triggers for the hospital sector in India. These technologies enable patients to receive medical care from remote locations, reducing the need for physical visits to hospitals and clinics.

For instance, Narayana Health, one of the leading healthcare providers in India, has established telemedicine centers across the country. The company uses telemedicine to connect patients in remote areas with doctors and specialists in urban areas. Similarly, Apollo Hospitals has developed a telemedicine platform that allows patients to consult with doctors remotely.


Remote healthcare technologies have also led to the development of home healthcare services in India. For instance, Portea Medical, a home healthcare provider in India, offers services such as nursing care, physiotherapy, and medical equipment rentals. These services enable patients to receive medical care in the comfort of their homes, reducing the need for hospital visits.

Medical Tourism

Medical tourism is emerging as a significant growth trigger for the hospital sector in India. The country has become a popular destination for medical tourists due to the availability of high-quality medical care at affordable prices.

For instance, Fortis Healthcare has established a medical tourism division that caters to the needs of international patients. The division offers services such as visa assistance, travel arrangements, and accommodation. Similarly, Apollo Hospitals has established a dedicated international patient services division that offers customized healthcare packages for international patients.


The medical tourism industry in India is expected to grow significantly in the coming years, driven by factors such as the availability of high-quality medical care, affordable prices, and the country's reputation as a popular tourist destination.

 

Private investments and partnerships

Private investments and partnerships have emerged as a significant growth trigger for the hospital sector in India. The country's healthcare market is estimated to be worth $372 billion by 2022, driven by factors such as increasing demand for healthcare services, rising disposable incomes, and government initiatives to improve healthcare access. In this article, we will discuss the growth triggers for the hospital sector in India, with a focus on private investments and partnerships.

Foreign Investments in the Sector

Foreign investments in the healthcare sector have been steadily increasing in recent years. This growth trigger has enabled Indian hospitals to upgrade their infrastructure, purchase advanced medical equipment, and attract medical professionals with international experience.


For instance, Apollo Hospitals has partnered with several foreign investors, including International Finance Corporation and Goldman Sachs, to expand its operations in India. Similarly, Fortis Healthcare has attracted foreign investments from companies such as Khazanah Nasional Berhad and IHH Healthcare.

Foreign investments in the healthcare sector have also led to the establishment of healthcare startups in India. For instance, Practo, a healthcare startup in India, has received funding from foreign investors such as Tencent and Sequoia Capital.

Public-Private Partnerships

Public-private partnerships (PPPs) have emerged as a critical growth trigger for the hospital sector in India. The government has been actively promoting PPPs to improve healthcare access and quality in the country.

 


For instance, the government has launched several PPPs in the healthcare sector, such as the Public Private Partnership for Non-Communicable Diseases (NCDs) and the Pradhan Mantri Jan Arogya Yojana (PMJAY) scheme. The PMJAY scheme, also known as Ayushman Bharat, aims to provide health insurance coverage to over 100 million families in India.

PPPs have also led to the establishment of world-class hospitals in India. For instance, the Max Healthcare hospital in Delhi is a PPP between Max India Limited and the Government of Delhi. The hospital provides high-quality medical care at affordable prices and has won several awards for its services.

Corporate Hospitals and Chains

Corporate hospitals and chains have emerged as a significant growth trigger for the hospital sector in India. These hospitals are known for their advanced medical technology, world-class infrastructure, and specialized medical services.

For instance, Apollo Hospitals is one of the largest hospital chains in India, with over 70 hospitals across the country. The hospital chain is known for its expertise in cardiology, oncology, neurology, and transplant services.

Similarly, Fortis Healthcare is another leading hospital chain in India, with over 30 hospitals across the country. The hospital chain is known for its advanced medical technology, world-class infrastructure, and specialized medical services.

Corporate hospitals and chains have also led to the establishment of specialty hospitals in India. For instance, the Manipal Hospital in Bangalore is a specialty hospital that specializes in cardiology, neurology, and oncology services. The hospital is known for its advanced medical technology, world-class infrastructure, and specialized medical services.

 

Dr Madhav Madhusudan Singh MBBS, MHA , MBA , Ph.D.

https://twitter.com/madhavsingh1972

https://www.linkedin.com/in/dr-madhav-madhusudan-singh-07139a26/


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