Contents

y Introduction y Key players y Landscape in India y Government health system y Administrative structure and delivery structure y Financing mechanism y Contradiction y Strength, Weakness, Opportunity, Threat y Summary

Introduction
y y y y y y

World health care industry Medical institution... Plays an important part in the economy of a country. Determines the GDP of any country. Annually over 150,000 crores or US$34 billion spent, which is 6% of GDP The quantity and quality are improved through the results of science, For eg: Focuses on the eradication of illness through diagnosis and effective treatment.

y Advancement through health research, including

biomedical research and pharmaceutical research. y They form the basis of evidence-based medicine and evidence-based practice in health care delivery.

y y

Expenditure on health care is second major cause of indebtedness among rural poor Invention of latest technological developments, the industry is catching up with the other leading industries of the world. This is one of the largest industries catering to the medical needs of innumerable people around the globe

Players
1.

Dentists and doctors 2. Pharmacies

3. Allied medical , health services 4. Hospitals 5.Protective care and nursing

Healthcare Landscape in India

y Life Expectancy and Infant Mortality showing

significant improvement y Life expectancy on par with less developed regions, however long way to go to meet more developed regions

:y Three levels of responsibilities-

Government Health System

Firsty health is primarily a state responsibility Secondy - the central government is responsible for developing and monitoring national standards and regulations y Sponsoring various schemes for implementation by state governments y - providing health services in union territories Thirdy both the centre and the states have a joint responsibility for various programmes

Administrative Structure
1. Central Ministries of Health and Family Welfare y - Responsible for all health related programmes y - Regulatory role for private sector 2. State Ministries of Health and Family Welfare 3. District Health Teams headed by Chief y Medical and Health Officer

Service Delivery Structure

y Sub Health Centres- Staffed by a trained female health worker and/or a male health worker for y Population: 5000 in plains y 3000 in hilly & tribal areas y Primary Health Centresstaffed by a medical officer and other paramedical staff for a y Population: 50000 in plains y 30000 in hilly ,tribal & backward areas y PHC supervises 6-8subcentres

y Community health centres- with 30-50 beds and basic

specialities covering a population of 80,000 to 120,000. The CHC acts as a referral centre for four to six PHCs. y District/General hospitals- at district level withmulti speciality facilities (City dispensaries) y Medical colleges, All India institute of Medical Sciences and quasi government institutes

Health Financing Mechanisms..

y Revenue generation by tax(15 %) y Out of pocket payments or direct payments(80%) y Private insurance(1%) y Social insurance (4%) y External Aid supported schemes

Contradictions
y India has the largest numbers of

medical colleges in the world y It produces the largest numbers of doctors among developing countries y It gets medical Tourists from developed countries y This country is fourth largest producer of drugs by volume in the world

STRENGTH
y Population of over a billion is a largely untapped

market. y In fact the penetration of modern medicine is less than 30% in India.  The growth of middle class in the country has resulted in fast changing lifestyles in urban and to some extent rural centers. y This opens a huge market for lifestyle drugs, which has a very low contribution in the Indian markets.

y Indian manufacturers are one of the lowest cost

producers of drugs in the world. With a scalable labor force, y Indian pharmaceutical industry posses excellent chemistry and process reengineering skills. y This adds to the competitive advantage of the Indian companies. The strength in chemistry skill help Indian companies to develop processes, which are cost effective.

weakness
y Indian pharma sector has been marred by lack of

product patent, y India accounts for almost 16% of the world population while the total size of industry is just 1% of the global pharma industry.

OPPORTUNITIES
y migration into a product patent - transform industry

fortunes in the long term. regime will bring with it new innovative drugs y increase the profitability of MNC pharma companies and will force domestic pharma companies to focus more on R&D. y Large number of drugs going off-patent in Europe and in the US between 2005 to 2009 offers a big opportunity for the Indian companies to capture this market

y Key growth drivers from a long-term perspective.

Opening up of health insurance sector and the expected growth in per capita income y This leads to the expansion of healthcare industry of which pharma industry is an integral part. y Being the lowest cost producer combined with FDA approved plants, Indian companies can become a global outsourcing hub for pharmaceutical products.

Threats
y concerns over the patent regime regarding its current

structure change in govt- change policies (patent) y Threats from other low cost countries like China and Israel exist. y short-term threat - Implementation of VAT

To Summarize
y Steady economic growth expected over the medium term y Vast growth potential in healthcare sector y In generics and drug manufacturing, Indian companies are

competitive so collaborate or invest in them y Infrastructure offers best opportunity, given global superior experience and 100% FDI allowance in India