Healthcare Industry

The notion is fast-spreading that Indian hospitals can provide world-class care at competitive rates. India today has big names in healthcare like the All India Institute of Medical Sciences (AIIMS), Apollo Hospitals and Shankara Netralaya.

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.

“India has the potential to significantly improve healthcare in the next 25 to 30 years provided it steps up capacity for generating and translating scientific and technological advancements into medical innovations,” says M.K. Bhan, Secretary in the Department of Biotechnology.

A vibrant and dynamic healthcare sector is imperative for the new human resource intensive world. Quality healthcare is vital for the growth of any nation. The key objectives of an effective healthcare system would be to enhance average life expectancy and to improve quality of life and productivity.

The sector needs people with high skill sets who can leverage technology and medical science, and who can cater to the customers keeping all aspects of health management in mind. As the managers of this sector touch innumerable lives the principle of network economics is one of the important lessons for them to learn.

Current Scenario

Although the Indian government-run public sector has taken lot of initiatives in regards to the development of healthcare facilities, it is unable to do much now, which has brought the private sector into the picture.

This in turn, has brought in more capital, better technology etc. The recent Union Budget too has been favorable to the healthcare sector. There has been reduction of customs tariffs on life saving medical equipment, reduction of excise on certain critical drugs and abolition of duty on drugs and materials imported for clinical trials.

Permissible depreciation rates for medical equipment under the Income Tax Law have been increased to enhance cash flows of the corporate hospitals in the private sector.

Lower interest on lending for private sector hospitals exceeding 100 beds will improve access to low cost funding for hospitals.

But the biggest leap has been the community-based universal health insurance scheme for the poor whereby a cover of Rs 30,000 is available for as low as Rs 2 per day with the Government contributing Rs 100 per annum for families below the poverty line.

Competition has proven to be the biggest blessing in the sector. Notwithstanding the healthy competition, several big corporate houses have ventured into the sector. The availability of various equipments has proven to be life saving many times. The formation of many big hospitals is the hint of the boost in this sector.

The entry of big pharmaceutical companies into this segment is a clear sign of corporate focus on this sector. Earlier many diseases did not have any cure for them but today such diseases have no longer remained a big threat to mankind. The implementation of newer and better technology in hospitals has helped save many lives.

The increase in expenditure by government towards enhancement of medical facilities is a big plus, as is the involvement of large corporate houses. The reduction in customs and excise duties on various items is proving to be of great help to the sector resulting in the formation of the healthy competition.

Constant research and development have led to the discovery of new and better life saving drugs while the development of infrastructure and various incentives provided by the government is proving to be a great booster.

The government has also come up with various insurance schemes, which could help the sector and this is aided by the formation of various institutes, which have given the country the best of the doctors.

The growth in the sector would be driven by healthcare facilities, private and public sector, medical diagnostic and pathlabs and the medical insurance sector.

This is evident from a Yes Bank and ASSOCHAM report, which says that the healthcare industry in the country, which comprises hospital and allied sectors, is projected to grow 23 per cent per annum to touch US$ 77 billion by 2012 from the current estimated size of US$ 35 billion.

Previous Page                                             1 2 3 4                                                Next Page