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Healthcare Sector

       
         
   
         
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Healthcare

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Tourism & Hospitality Training & Education Healthcare Sector Last Modification Date: March 31, 2006 The
Tourism & Hospitality Training & Education Healthcare Sector Last Modification Date: March 31, 2006 The
Tourism & Hospitality Training & Education Healthcare Sector Last Modification Date: March 31, 2006 The

Healthcare Sector

Last Modification Date: March 31, 2006

The Indian healthcare sector has been growing at a frenetic pace in the past few years. The windfall began ever since the developed world discovered that

it could get quality service for less than half the price.

The sector is expected to post the highest year-on-year growth in earnings in the fiscal year to March 31, 2007, says Reuters. It is set to post a 42 per cent rise in earnings in the year to March 2007. These figures are driven by availability of quality healthcare and the huge rise in numbers visiting India for treatment.

The number of patients visiting India for medical treatment has risen from 10,000 in 2000 to about 100,000 in 2005. With an annual growth rate of 30 per cent, India is already inching closer to Singapore, an established medicare hub that attracts 150,000 medical tourists a year.

The healthcare industry employs over four million people, making it one of the largest service sectors in the economy. A joint study by the Confederation of Indian Industry and McKinsey shows:

At the current pace of growth, medical tourism, currently pegged at US

$ 350 million, has the potential to grow into a US$ 2 billion industry by

2012.

Healthcare spending in the country will double over the next 10 years. Private healthcare will form a large chunk of this spending, rising from 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 billion) if health insurance cover is available to the rich and the middle class.

The voluntary health insurance market, which is estimated at Rs 4 billion (US$ 86.3 million) currently, is growing fast. Industry estimates put the figure at Rs 130 billion (US$ 2.8 billion) by 2005.

With the expected increase in the pharmaceutical market, the total healthcare market could rise from Rs 1,030 billion (US$ 22.2 billion) currently (5.2 per cent of GDP) to Rs 2,320 billion (US$ 50 billion)-Rs 3,200 billion (US$ 69 billion) (6.2-8.5 per cent of GDP) by 2012.

However, it is not only the cost advantage that keeps the sector ticking. It has

a high success rate and a growing credibility.

Indian specialists have performed over 500,000 major surgeries and over a million other surgical procedures including cardio-thoracic, neurological and cancer surgeries, with success rates at par with 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.

http://203.122.59.38/industry/healthcare.aspx (1 of 3)04/11/2006 15:04:33

Healthcare Sector

Ratings

India's independent credit rating agency CRISIL has assigned a grade

A rating to super speciality hospitals like Escorts and multi speciality

hospitals like Apollo.

NHS of the UK has indicated that India is a favoured destination for 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.

Indian Medical Association Indian Dental Association ● The Apollo Hospitals group has drawn up plans to
Indian Medical Association Indian Dental Association ● The Apollo Hospitals group has drawn up plans to
Indian Medical Association Indian Dental Association ● The Apollo Hospitals group has drawn up plans to

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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of hospitals and other healthcare service providers. http://203.122.59.38/industry/healthcare.aspx (2 of
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Healthcare Sector

Copyright © 2004-2006 India Brand Equity Foundation

An initiative of the Ministry of Commerce & Industry, Government of India

, Government of India C/o Confederation of Indian Industry http://203.122.59.38/industry/healthcare.aspx (3 of
, Government of India C/o Confederation of Indian Industry http://203.122.59.38/industry/healthcare.aspx (3 of
, Government of India C/o Confederation of Indian Industry http://203.122.59.38/industry/healthcare.aspx (3 of

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