Sie sind auf Seite 1von 65

HEALTHCARE SECTOR IN INDIA

Challenges and Opportunities


OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public vs Private sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
Business Opportunities
HEALTHCARE SECTOR IN INDIA

‰ Health administration in India is governed by the


Ministry of Health and Family Welfare

‰ The central administration provides co-ordination and


direction to a network of state health ministries for
actuall implementation
i l i

‰ The healthcare sector constitutes

¾ Medical care providers


¾ Diagnostic service centres and pathological labs
¾ Medical equipment manufacturers
¾ Contract research organizations
¾ Pharmaceutical manufacturers
¾ Third party support service providers
HEALTH INFRASTRUCTURE
A COMPARISON

Countries Beds Physicians Nurses


P ’000 population
Per l ti P ’000 population
Per l ti Per ’000
000 population

cIndia 1.2
15
1.5 09
0.9

cLow income (e.g., sub-


Saharan Africa) 1.5 1.0 1.6

cMiddle income (e.g., China,


Brazil) 4.3 1.8
1.9

cHigh income (e.g., US,


7.4 1.8
Western Europe) 7.5

cWorld average 3.3 1.5 3.3


HEALTHCARE - INFRASTRUCTURE

Investment in Major States

200 189
157
150
111
U S D M illion

94
100

50

0
Maharashtra Delhi Karnataka Meghalaya

States
HEALTHCARE–REGISTERED DOCTORS

Availability of Doctors in Major States

120,000
95,299
100,000
N o. of D octoors registeredd

80,000 72,725
64,492
60,000 53,456

40 000
40,000
20,000
0
Maharashtra Tamil Nadu Karnataka West Bengal

States
OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public vs Private sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
Business Opportunities
CURRENT SCENARIO

‰ The healthcare industry is estimated at USD


22 billion

‰ Estimated growth at 13 per cent annually


assures a return
t off 15-20
15 20 per centt for
f th
the
healthcare providers

‰ Healthcare sector at present employs 4 million


people directly and indirectly

‰ Private healthcare market currently estimated


at Rs 690 billion (USD 14.8 billion)
CURRENT SCENARIO

‰ 85 per cent private sector establishments


have less than 25 beds

‰ Speciality and super speciality hospitals


account for 2 per cent of total institutes

‰ Corporate hospitals constitute less than 1 per


cent of all institutes

‰ Private sector accounts for 82 per cent of all


out patient visits
out-patient

‰ Private sector accounts for 52 per cent of all


h
hospitalization
it li ti
CURRENT SCENARIO

Current Healthcare Infrastructure


Healthcare Indicators: India Vs World

Hospitals 15,393
India at 1951
1990 Developing Countries
India Today Developed Countries Public 4,049

Life expectancy at birth Private 11,344


78
63
65 Hospital beds 875,000
37
Doctors 592,215
Infant mortality
Nurses 737,000
146 56
70 6 Dentists 80,000

Medical Colleges 170

Retail chemist outlets 350,000

New doctors every year 18,000

Th
There iis a big
bi scope for
f improvement,
i t hhence vastt investment
i t t opportunities…
t iti
STATUS OF HEALTHCARE SECTOR
Sector Direct employment Revenues/GDP

Million, 2000-2001 Per cent, 2000-2001

Healthcare 4.0 5.2

Education 5.3 4.8

Retail banking 1.0 3.5 Healthcare is the


largest service
Power
1.2 3.0 industry in terms
of revenues and
R il
Railways 16
1.6 18
1.8 the second
largest after
education in
Telecom 0.8 1.4 terms of
employment
Hotels,, restaurants 17
1.7 09
0.9

IT 0.4 1.7

By 2012, the sector could account for 6 to 8 per cent of GDP and provide
direct and indirect employment of 8 million
HEALTHCARE ISSUES & CONCERNS

‰ Small hospitals – 80 per cent < 25


b d
beds
‰ Specialised services available in only 2
per cent hospitals
‰ Good healthcare available only in
metros
‰ Lack of infrastructure
‰ Mismanaged Public hospitals
‰ I d
Inadequatet remuneration
ti f
for public
bli
hospital staff
‰ Lack of commitment
OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public vs Private sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
Business Opportunities
GROWTH DRIVERS

“Physicians, Nurses, Medical Technicians and Other Scientific


Occupations will Become Growth Industries to Rival the IT Sector
within the Next Decade”

- India Vision 2020 Report


GROWTH DRIVERS

Private Healthcare Spending

45 42
40 if health insurance cover
35 is available to the rich
and the middle class it
30 8 4 bn
8.4
USD Billion
n

would rise to this level


25
20
14.8
15
10 33.6 bn
5
0
2007 2012

Year

Private healthcare expected to grow to Rs 1,560 billion (USD 33.6 billion) in 2012
GROWTH DRIVERS

Total Healthcare Sector

This would account for


around 6.2 to 8.5% of GDP
by 2012
80
52-69
70

60
USD Billion

50 Currently
5.2% of GDP
40

30
22 2
22.2
20

10

0
2007 2012
Year

Total Healthcare market including Pharma to account for 6.2 to 8.5% of GDP in 2012
GROWTH DRIVERS

‰ Corporates are sensing a huge untapped opportunity in


delivery of quality healthcare to the Indian masses

‰ Policies and budgetary considerations towards


pharmaceutical as well as biotech organizations are now
f
favorable
bl

‰ De-regulation of health insurance has paved the way for the


entry of foreign health insurance companies

‰ Medical equipment industry too being opened to foreign


collaboration for manufacturing high and middle
middle-level
level
technology medical equipment

‰ Global Private Equity players and Venture Capital companies


also actively exploring opportunities
GROWTH DRIVERS

INDIA – COST ADVANTAGE


PROCEDURE COST (US$)

US
US THAILAND
THAILAND INDIA UK

Heart Surgery 40,000 7,500 6,000 23,000

Bone Marrow Transplant 2,50,000 ------- 26,000 1,50,000

Liver Transplant 3,00,000 ------- 69,000 2,00,000

Knee Replacement 20,000 8,000 6,000 12,000

Cosmetic Surgery 20,000 3,500 2,000 10,000


GROWTH DRIVERS

HEALTHCARE SNAPSHOTS

‰ 0.5 million major surgeries carried out

‰ Over a million surgical procedures carried out

‰ Cardiac bypass success rate – 98.7 per cent

‰ B
Bone marrow transplant
t l t – 80 per centt success rate
t

‰ Renal transplant – 95 per cent success rate


INTERNATIONAL RECOGNITION

‰ As per NHS of UK - India is a favored destination for surgeries

‰ British Standards Institute has accredited Delhi-based Escorts


Hospital

‰ Wockhardt Hospital has an exclusive association with Harvard


Medical International, global arm of Harvard Medical School

‰ US-based Joint Commission on Accreditation of Healthcare


Organisations has certified:
¾ Indraprastha Apollo Hospital (New Delhi)
¾ Apollo Hospital (Chennai)
¾ Apollo Hospital (Hyderabad)
¾ Wockhardt Hospital (Mumbai)
¾ Shroff Eye Hospital (Mumbai)
OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public & Private Sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
Business Opportunities
HEALTHCARE - PRIVATE & PUBLIC

Private sector offers tertiary-level,


y , p
preventive and diagnostic
g
healthcare

Public/Private share of
Non
Public/Private Hospitalization
share of Hospitalization
90
81
78
70 80
70 62
60 58
60

50 50
40
42
40 38
30
22
19
30 20
10
20
0
10
0 Rural Urban
Public Private
0
Rural Urban
Public Private
ROLE OF PUBLIC SECTOR

Public sector focus is on prevention and elimination of infectious


diseases and accessibility of basic healthcare facilities to the
rural and urban masses
PRIVATE SECTOR INITIATIVES

‰ At Rs 690 billion, private spending


accounts for 80 per cent of the health
care market

‰ 61 per cent is spent on outpatient care

‰ Over 50 per cent of outpatient spend is


on acute infectious diseases

‰ Over 80 per cent of inpatient spend is in five


areas: cardio,
d cancer, accidents,
d acute infections
f
and maternity

‰ Urban Indians and rich account for a


disproportionate spend
HEALTHCARE EXPENDITURE

Public & Private Sector Initiatives

138 bn

552 bn

Private Spending Govt Spending

Out of Rs 690 billion, (USD17 billion) the private sector accounts for
80 per cent or Rs 552 billion of the spending
PRIVATE EQUITY IN HEALTHCARE

Private equity deals in Healthcare in India,


2006 (USD Million)

Diagnostic
Hospitals, chains, 8
82.33

Pharmaceutic
Ph ti
als, 377.56
PRIVATE EQUITY IN HEALTHCARE

MAJOR HEALTHCARE DEALS

‰ George Soros’ fund Quantum and Blue Ridge bought 10


per cent in Fortis Healthcare
p
‰ Manipal Health Systems Private Limited raised over
USD 20 million of equity from IDFC Private Equity Fund
‰ Bangalore-based
Bangalore based HealthCare Global Enterprises Limited
(HCG) raised over USD 10 million in equity from IDFC
Private Equity Fund
‰ Metropolis Health Services Ltd. India India’s
s leading
Corporate Diagnostics Chain raised over USD 8 million
in equity from India Advantage Fund-I managed by
ICICI Ventures
OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public vs Private sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
Business Opportunities
HEALTHCARE VALUE CHAIN

Expected Business
Business
us ess Objectives
Object es
Ch
Changes O
Opportunities
t iti

•Changing diseases pattern

•Changing socio economic


•Quality services profile • Health insurance
Patient • Value for money
• Medical tourism
• Minimum co-pay •Changing life style
patterns • Preventive
healthcare
• Minimization of the •Demand for quality
healthcare • Healthcare BPO
cost
H
Hospital
it l • Wealth maximization • Telemedicine
• Increase value per •Corporatization of Indian
healthcare • Laboratory and
patient
diagnostic services
• Operational efficiency
• Increasing penetration of
private health insurance • Medical devices

• Wealth maximization • Health IT


Insurance •Foreign alliances
• Minimum annual pay • Consulting
put •Information technology in
healthcare

Investment opportunities exist in multiple segments along the value chain


OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public vs Private sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
Business Opportunities
GOVERNMENT POLICIES & INCENTIVES

‰ Infrastructure status conferred on healthcare industry


‰ Budgetary allocation to healthcare – Rs 62 billion (USD 1.51
1 51
billion)
‰ 40 per cent depreciation limit on medical equipment imports
‰ Income tax exemption for the first 5 years,
years to 100 bed hospitals
set up in rural areas

‰ Reduced duties (between 5–8 per cent) on certain medical


equipment and devices

‰ Customs duty exemption on specific personal medical aids like


crutches, wheel-chairs, walking frames, artificial limbs

‰ Customs duty, excise duty and CVD exemption on specific medical


devices such as talking books, Braille computer terminals, etc.
OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public vs Private sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
g
Business Opportunities
GOVERNMENT INSTITUTIONS

Major Government institutions in healthcare

‰ All India Institute of Medical Sciences (AIIMS), New


Delhi (Central Government)
‰ Armed Forces Medical Collegeg ((AFMC),), Pune ((Ministry
y
of Defence)
‰ JIPMER, Pondicherry (Central Government)
‰ Madras Medical College (MMC), Chennai (State
Government)
‰ Maulana Azad Medical College (MAMC), Delhi (State
Government)
‰ Stanley Medical College,
College Chennai (State Government)
‰ Grant Medical College, Mumbai
MAJOR PRIVATE HOSPITAL CHAINS
Hospital Speciality Services Size Global Forays
Apollo Open heart 130 retail 40 hospitals cExisting overseas facilities in Colombo and
Hospitals surgery, angio pharmacies with 6,000 Middle East
plastic surgery across India beds cPlans to set up hospitals in Mauritius and
and renal Fiji
transplants cBidding for a diagnostic facility in the UK
cApollo-Gleneagles Hospitals, a joint
venture between Apollo Hospitals and
Parkway Group of Singapore, plans 2 more
hospitals in India, after the first set up at
K lk t
Kolkata
cBusiness opportunities in West Asia and
North Africa
cPartnership with Yemen’s Hayel Saeed
Anam Group to provide advisory services for
its hospital project
cWill provide consultancy to set up a 160-
bed super specialty hospital at Taiz, Yemen.
Wockhard Tertiary level Product and 10 hospitals •Eyeing markets in Europe, particularly UK
t Hospitals heart centre services with 1500 •Building tie-ups with leading healthcare
formulations, beds insurance providers in the US, UK and
nutritional Singapore
products,
vaccines,
pharmaceutical
ingredients, bio
pharmaceuticals
Fortis Provides the Super speciality 12 hospitals
Healthcar latest medical hospital with 1,900 N.A
e care to patients beds

Cont…
.
MAJOR PRIVATE HOSPITAL CHAINS

Hospital Specialty Services Size Global Forays

Max Focusing on 3-tier business 7 hospitals cTrying to enter the US, UK and far-east
Healthcare becoming model for delivering with 800 markets.
th largest
the l t h lth
healthcare services
i b d
beds cExpanding operations in neighbouring
healthcare countries like Bangladesh and Afghanistan.
player in cMax Healthcare and Singapore General
India Hospital (SGH) have entered into collaboration
for medical practice, research, training and
education in healthcare services.
Aravind Single Operates an 5 hospitals
Hospitals largest international and a
provider of research foundation manufacturi
eye surgery and a resource and ng center
in the world training centre for N.A.
ophthalmic
products

*Escorts World class Diagnostic services, 20 hospitals


p
Group treatments treatment services, and 8
for heart Preventive facilitation
ailments cardiology and centres
Rehabilitation N.A.
services and
Pediatric heart care

*Escorts group has been taken over by Fortis Healthcare (Ranbaxy Group)
PRIVATE SECTOR INFRASTRUCTURE

Leading Hospital Chains


Group No of beds
Apollo 2,164
Manipal 3,858
Fortis 1,790
Max Healthcare 750
Wockhardt 700
FOREIGN COLLABORATIONS

‰ Global real estate major Emaar Properties and its Indian


partner MGF g
p groupp to set up
p 50 hospitals
p across India

‰ Pacific Healthcare Holdings, Singapore – Vitae


Healthcare Pvt Ltd for setting up medical centre in
Hyderabad (Andhra Pradesh)

‰ Parkway Group,
Group Singapore – Apollo Hospitals set up a
325-bed super-speciality Apollo Geneagles Hospital,
Kolkata

‰ Prexus Health USA’s through its Indian subsidiary is


planning state-of-art hospitals around Delhi
OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public vs Private sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
Business Opportunities
FUTURE GROWTH

‰ By 2012, revenues estimated to reach USD 52-69


billion, 6.2 to 8.5 per cent of GDP; employment will
d bl
double

‰ The pattern of healthcare spending will also change


¾ The share of outpatient spend will decrease from 61 per
cent to 53 per cent

¾ Lifestyle diseases will drive the growth of outpatient spend

¾ Cancer and heart diseases will drive most of the growth of


inpatient spend

‰ 80,000 additional hospital beds required every year for


the next 3 to 4 years to meet growing demands
INVESTMENTS IN HEALTHCARE

90,000 77,962
80,000
70,000
USD Million
n

60,000
50,000 38,824
40,000
30,000
20 000
20,000 7,828
10,000
0
2006 2009 2012
Year

Investment in healthcare to grow nearly 11 times to touch USD 77 billion in 2012


OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public vs Private sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
Business Opportunities
CHALLENGES

‰ The growing demand for the quality healthcare and the


absence of matching g delivery
y mechanisms p
pose a challengeg
and certainly a great opportunity
‰ Several barriers need to overcome to attract sizeable private
investment in healthcare…
¾ Unwillingness of lending institutions to finance healthcare
projects due to failures in early ’90s
¾ Capital intensive industry with long gestation period
¾ Poor availability of doctors, nurses and paramedic
personnel
¾ Inability to lower prices to attract required number of
patients
ti t because
b off fixed
fi d costt off setting
tti up a facility
f ilit
¾ Low availability of qualified practitioners in rural areas
CHALLENGES

‰ No clarity within various government departments and


ministries about issues faced by the healthcare industry

‰ Low consumer awareness about differences in quality of care


across different provider types

‰ By 2010, 4,53,785 doctors and 1,290,174 more nurses will be


required by the Indian Healthcare Industry, which is both a
big challenge and an opportunity
OUTLINE

Healthcare Sector in India


Current Scenario
Growth Drivers
Public vs Private sector
Healthcare Value Chain
Government Policies and Incentives
Major Players
Future Growth
Challenges
Business Opportunities
HEALTH–COMPARATIVE STRENGTHS

Key Competencies Key Outsourcing Areas in focus

¾ High Quality Talent pool ¾ Medical Tourism


¾ Proven Track record ¾ Healthcare Customer care
India ¾
¾
Favorable Governmental Policies for healthcare
Cost savings
¾ Network support
¾ Healthcare BPO outbound
¾ Conventional Medicinal Facilities like Ayurveda ¾ Healthcare analytics
¾ High Quality infrastructure

¾ Cost Benefits
Philippines ¾ The US accent Talent pool ¾ Healthcare Customer Care
¾ The cultural affinity with US

¾ Bigger talent pool at a lower cost ¾ Healthcare Customer Care


China ¾ High end medical facilities ¾ Network Support
¾ Conventional Chinese medicine ¾ Traditional medical facilities

¾ Quick deployment ¾ Oral and Surgical facilities


especially in Ophthalmology
Eastern Europe ¾ High Quality output and Facilities
¾ Healthcare Customer service
¾ Cost savings
¾ Healthcare BPO outbound

¾ Service
S i oriented
i d culture
l
Thailand ¾ High Quality facilities at low prices
¾ Medical Tourism
BUSINESS OPPORTUNITIES

‰ India needs an investment of USD 203 billion to meet the ‘Health


for All’ target by 2010
‰ Significant requirement in increase in number of beds per 1000
population – from 3 beds per 1000 population to 5 beds per
1000 population by 2010 (in both private and public)
‰ This translates to an addition of 2.22 2 million beds requiring
investment of USD 77.9 billion, majority of which will come from
the private participation
‰ Increasing preference for private medical care amongst the
urban population
‰ High growth domestic market arising from increasing health
awareness
‰ Rapidd growth h in private sector companies owning and d managing
hospitals
‰ Cost of advanced surgeries in India is about 10 per cent of that in
USA
‰ Service Providers: Curative and preventive in primary, secondary and
tertiary care
BUSINESS OPPORTUNITIES

Medical Equipment
¾ Market size estimated at USD 2 billion in 2006
¾ Growing at a rate of 15 per cent, expected to touch USD 4.9
billion in 2012
¾ 65 per cent of equipment is imported
¾ Major suppliers include Siemens, GE, Philips, Toshiba, Hitachi,
Boston Scientific
¾ Cardiology equipment - 20 per cent of total market Imaging
systems - 15 per cent of total market
¾ Driving forces
‰ Investments in specialty hospitals and diagnostic centres
‰ Competition
‰ Up gradation of equipment
‰ Favorable government policies- reduction in import duties
‰ Expanding market boundaries
BUSINESS OPPORTUNITIES

Medical Equipment Market Size

Rising 15 %
6,000.00
4,977.98
per year
5,000.00
USD Million
n

4,000.00
3,275.42
3,000.00
2,176.68
2,000.00
1,000.00
0.00
2006 2009 2012

Y ear

Medical equipment requirement to touch USD4.9 billion in 2012


BUSINESS OPPORTUNITIES

Medical Equipment: Market Distribution

19% 3%

52%
26%

Medical furnitures Equipment Consumable Orthopaedic products


BUSINESS OPPORTUNITIES
BUSINESS OPPORTUNITIES

‰ Health Insurance
¾ Health insurance market is estimated at USD 2.8
billion
¾ More than 80 p per cent of the expenditure
p on
healthcare is out of pocket
¾ Only 3 per cent of country's population is covered by
insurance
¾ Expected growth rate of 13 per cent per annum
¾ Private and public players registered a growth of 77
per cent and 25 per cent over 2004-05
¾ S i Re
Swiss R estimates
ti t a potential
t ti l off USD 7,700
7 700 million
illi i
in
health insurance premium by 2015
BUSINESS OPPORTUNITIES

Health Insurance Market

9
7.7 bn
8
Only 3% of country's
7
population is covered by
USD Biillion
6
insurance
5
4
2.8 bn
3
2
1
0

2007 2015

Health insurance market at USD 2.8 billion - Only 3 per cent of country's
population covered by insurance - a potential of USD 7,700 million in
health insurance premium by 2015
BUSINESS OPPORTUNITIES

‰ Affluent middle-class population willing to pay for higher


standards of healthcare
‰ Foreign Direct Investment (FDI) limit in health insurance may
be raised from 26 per cent to 49 per cent
‰ Third Party Administrators business has also witnessed
growth
Private players in Health insurance

Cholamandalam Royal Sundaram


HDFC Chubb 4% 9% T ata AIG
1%
Bajaj Alliance 6%
18% Reliance
2%

Iffco T okyo
10%
ICICI Lombard
50%
BUSINESS OPPORTUNITIES

Medical Tourism

- Healthcare tourism market, currently at USD 450 million,


expected to bring in over USD 1.5 billion revenues by
2012

- Attracts patients from South East Asia, Africa, Middle


East UK and US
East,

- Number of tourists visiting India increased from 10,000 in


2001 to 150,000 in 2005
BUSINESS OPPORTUNITIES

Medical Tourism

2000

1500 1480
USD M illion

CAGR 22%
CAGR-22%
1000

500 450

0
2006 2012

Medical Tourism market to grow at a Compound Annual Growth Rate of 22 per cent to
touch USD 1.48 billion in 2012.
BUSINESS OPPORTUNITIES

‰ Clinical Research
¾ Present market size around Rs 1 billion (USD 25 million)
¾ Expected to grow to Rs 50 billion (USD 1.25 billion) by 2010
¾ 50 per cent Contract Research Organisations in India at present

‰ L b
Laboratory
t & Diagnostic
Di ti Services
S i
¾ India becoming a competitive outsourcing destination for high-
end laboratory and diagnostic testing
¾ D Lal's
Dr L l' Pathlabs,
P hl b M
Metropolis
li Health
H l h Services,
S i SRL Ranbaxy
R b –
some diagnostics chains catering to the high-end services for
hospitals in the UK, the US and West Asia
BUSINESS OPPORTUNITIES

‰ Healthcare BPO and IT


¾ Healthcare industry under pressure due to regulations and the
need for cutting costs

¾ Huge potential for Indian IT companies to tap this market

¾ BPO opportunities in more advanced sectors such as imaging,


disease management and claims processing

¾ Need for transformation into paperless and film-less environment


by corporate hospitals and big trust hospitals
BUSINESS OPPORTUNITIES

‰ Radiology Outsourcing
¾ Indian corporate hospitals are in talks with hospitals in US and
UK, who are interested in outsourcing radiology work
¾ Radiology images can be transferred to Indian hospitals through
a dedicated line, which can be analysed by the Indian doctors
and
d sentt back
b k
¾ Radiology outsourcing to Indian hospitals can cut down cost by
50 per cent or less
¾ The 12 hour time difference with India enables the hospitals
p in
the US to work 24x7
BUSINESS OPPORTUNITIES

Total Healthcare Outsourcing

Growing at 11%
Per annum
8000 7400
7000
6000
USD Million

5000
3700
4000
3000
2000
1000
0
2006 2012
Year
UPCOMING PROJECTS

‰ Naresh Trehan’s Medicity


¾ Rs 12 billion project in Gurgaon (near Delhi), spread over 93
acres
¾ Will consist of 1600 beds, with a complete biotechnology backup
and R&D facility
¾ Will have major institutions for cardiology, oncology, bone and
joint, neurosciences, regenerative medicine and trauma care

‰ Fortis Medicity
¾ Rs 12 billion project in Gurgaon, having 2 campuses
¾ Hospital campus will have high end multi speciality hospital and
research centre
¾ College campus will have a medical college, a dental college,
nursing college and facility for primary and applied research in
medicine along with a 600-800 bed hospital

‰ Madras Institute of Orthopaedics and Traumatology


(MIOT) Medical City
¾ MIOT Hospitals plans to set up a multi speciality medical city
near Chennai
UPCOMING PROJECTS

‰ Apollo Health City


¾ Rs 10 billion
R billi project
j i Hyderabad,
in H d b d spread
d over 33 acres
¾ Has a postgraduate college for doctors, a nursing school and
college, college of physiotherapy, institute of hospital
administration, institute of medical informatics, institute for
emergency medicine and institute for paramedics
¾ Has 500 beds and 200 more will be added in next 6 months

‰ Dhirubhai Ambani Health City


¾ Reliance
R li A il Dhirubhai
Anil Dhi bh i Ambani
A b i Group
G i t
interested
t d in
i building
b ildi a 60
acre health city in Kolkata

‰ CMC Ajit Singh Lottery Medicity


¾ Rs 500 million medicity project in Ludhiana by the Christian
Medical College and Hospital
¾ Will have a general and a speciality hospital and an education
institute
INVESTMENTS PLANNED

N
New E
Entrants
t t

New Hospital Investment Proposed


(Rs million)

At i
Artemis 5000
Prexus Health, USA 2500
Emaar MGF 30,000
Pacific Healthcare 750
Parkway group 2000
C l bi A
Columbia Asia
i 6600
DRIVERS OF M&A

‰ Proactive government policies – Infrastructure


status to healthcare, financial incentives etc.

‰ Demand for quality healthcare in India

‰ Health insurance leading to higher spends on health

‰ Synergies between Indian and foreign firms

‰ Need for benchmarked foreign technology

‰ Investment opportunities for g


global PE and VC firms

‰ Medical equipment industry open to foreign


collaboration
EXPANDING INDIAN MARKET

‰ Healthcare industry will grow at 13 percent per


annum

‰ Assured return of 15-20 per cent annually

‰ Annual Demand for 80,000 beds

‰ Private sector accounts for 52 per cent of all


hospitalization
p
VALUE PROPOSITION

‰ Some options for investment are

¾Medical Infrastructure
¾Clinical Research
¾Healthcare BPO
‰ Indian medical institutions can commit assured supply of
manpower - doctors, nurses, paramedics
‰ Conduct jjoint research in medical delivery,
y, clinical trials
etc – Ability to generate large volumes and an easier
regulatory regime
‰ Access Indian capability in IT in the medical arena
‰ S up medical
Set di l equipment
i manufacturing
f i base
b in
i India
I di
‰ Leverage cost advantage for Medical Value Travel