Healthcare Sector

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Banking The Indian healthcare sector has been growing at a frenetic pace in the past Related News
few years. The windfall began ever since the developed world discovered that Japanese enter US$ 250
Biotechnology
it could get quality service for less than half the price. million Indian water purifier
Cement market
The sector is expected to post the highest year-on-year growth in earnings in Foreign companies train
Financial Services
the fiscal year to March 31, 2007, says Reuters. It is set to post a 42 per cent sights on local health
Food Industry rise in earnings in the year to March 2007. These figures are driven by
insurance mart
availability of quality healthcare and the huge rise in numbers visiting India for
Gems and Jewellery treatment. Hewlett targets retail,
healthcare
Healthcare
The number of patients visiting India for medical treatment has risen from UK surgeons to be trained
Information Technology 10,000 in 2000 to about 100,000 in 2005. With an annual growth rate of 30 per in India
cent, India is already inching closer to Singapore, an established medicare hub Wockhardt tie-up with US
IT enabled Services that attracts 150,000 medical tourists a year.
co
Media & Entertainment
Philips looking to make
The healthcare industry employs over four million people, making it one of the
Oil & Gas largest service sectors in the economy. A joint study by the Confederation of medical equipment in India
Indian Industry and McKinsey shows: Tourism gets a facelift:
Pharmaceuticals
Cosmetic surgery's the new
Real Estate ● At the current pace of growth, medical tourism, currently pegged at US pull
Retail $ 350 million, has the potential to grow into a US$ 2 billion industry by More>>
2012.
Research & Development ● Healthcare spending in the country will double over the next 10 years.
Private healthcare will form a large chunk of this spending, rising from Related Resources
Science & Technology Rs 690 billion (US$ 14.8 billion) to Rs 1,560 billion (US$ 33.6 billion) in
2012. This figure could rise by an additional Rs 390 billion (US$ 8.4 Healthcare
Steel billion) if health insurance cover is available to the rich and the middle Indian MNCs: Dabur India
Textiles class. Limited
● The voluntary health insurance market, which is estimated at Rs 4
Novartis: A Fortune 500
Telecommunications billion (US$ 86.3 million) currently, is growing fast. Industry estimates
put the figure at Rs 130 billion (US$ 2.8 billion) by 2005. company in India
Tourism & Hospitality ● With the expected increase in the pharmaceutical market, the total GSK: A Fortune 500
healthcare market could rise from Rs 1,030 billion (US$ 22.2 billion) company in India
Training & Education
currently (5.2 per cent of GDP) to Rs 2,320 billion (US$ 50 billion)-Rs
BASF: A Fortune 500
3,200 billion (US$ 69 billion) (6.2-8.5 per cent of GDP) by 2012.
company in India

However, it is not only the cost advantage that keeps the sector ticking. It has Pfizer: A Fortune 500
a high success rate and a growing credibility. company in India
Johnson & Johnson: A
● Indian specialists have performed over 500,000 major surgeries and Fortune 500 Company in
over a million other surgical procedures including cardio-thoracic, India
neurological and cancer surgeries, with success rates at par with More>>
international standards.
● The success rate in the 43,000 cardiac surgeries till 2002 was 98.5 per
cent.
● India's success in 110 bone marrow transplants is 80 per cent.
● The success rate in 6,000 renal transplants is 95 per cent.

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Healthcare Sector

Ratings Related Websites

Indian Healthcare
● India's independent credit rating agency CRISIL has assigned a grade Federation
A rating to super speciality hospitals like Escorts and multi speciality
Indian Medical Association
hospitals like Apollo.
● NHS of the UK has indicated that India is a favoured destination for Indian Dental Association
surgeries. •
● The British Standards Institute has now accredited the Delhi-based
Escorts Hospital.
● Apollo Group — India's largest private hospital chain and Escorts
Hospital are now seeking certification from the US-based Joint
Commission on Accreditation of Healthcare Organisations.

Global forays

Indian healthcare is all set to go global with a host of domestic hospital chains
busy scripting overseas expansion plans. On the radar are destinations as far
as the US, the UK and Mauritius, with countries in west and south-east Asia in
between.

● The Apollo Hospitals group has drawn up plans to set up or manage

hospital projects in Mauritius and Fiji. Besides, it is bidding for a
diagnostic facility in the UK and plans to try for a hospital project in
that country later. These would be in addition to the group’s existing
overseas facilities in Colombo and Middle East.
● Max Healthcare, another leading hospital chain, is trying to enter the
US, UK and far-east markets. This is besides the expansion of its
operations in neighbourhood countries like Bangladesh and
Afghanistan.
● Wockhardt is also eyeing markets in Europe, particularly the UK, as
part of its growth strategy. The company is already building its brand
presence through tie-ups with leading healthcare insurance providers
in the US, UK and Singapore.

Government support

Till now, only a few big private healthcare providers such as Apollo, Fortis,
Wockhardt and Max were creating their individual brand awareness in
overseas markets through tie-ups with insurance companies and patient
facilitation centres.

Now a number of smaller healthcare providers are working in collaboration with

the government to launch a comprehensive programme to promote medical
tourism. These include putting in place an accreditation system for domestic
hospitals and healthcare providers, drawing up a price band for superspeciality
services offered by Indian hospitals, adoption of country-specific marketing
strategies, opening of overseas facilitation centres and tie-ups with overseas
insurance companies.

The National Accreditation Board for Hospitals and Healthcare Providers

(NABH) set up by the Ministry of Health under the aegis of the Quality Council
of India is currently finalising the guidelines for accreditation of hospitals and
other healthcare service providers.

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Healthcare Sector

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