CHAPTER 11.

1 INTRODUCTION TO THE SECTOR

In the Indian scene, the emergence of private health care system came into being due to the acute shortage and gross inefficiency and disfunctioning of the public sector health care delivery mechanism and the health care needs of the growing population. In the initial stages these health care facilities sprouted in various metropolitan cities whenever the demand was felt. Also the private health care facilities initially stated acting as a complementary mechanism to public health care facilities available in the country. Thereafter, because of the quality, efficiency and reliability, the private health care facilities started assuming preferences over the public health care system. The Central and State Governments, were not unhappy on the emergence of the private health care facilities, large and small started mushrooming all over the country they started thinking in terms of taking certain regulatory measures which were not totally harmful to the growth of these private health care facilities. There was appreciation for the entrepreneurs, who organized and established the private healthcare facilities. India is currently one of the most lucrative healthcare markets globally with around US$ 69 Billion worth size in 2010. The country has got several growth drivers that are backing the industry potentials. Large population, prevalence of various diseases, untapped market, increasing urbanization, rising life expectancy,

and active private sector participation are some of the leading factors that have supported the industry growth. Despite global economic slowdown, the industry exhibited good growth patterns and is further likely to witness significant developments in future. E-health is a relatively new, but fast emerging segment of the Indian healthcare industry. Usage of information technology in bringing structural changes in healthcare delivery models has been applauded in the West and the same strategy is being adopted by the Indian medical service providers. Programs related to mobile health and telemedicine are being implemented in many regions across the country by authorities and players. As the country has a large base of mobile users, the potential for the growth of mobile health and telemedicine is attractive. To provide better healthcare services, the Public Private Partnership (PPP) Model has been adopted by the Indian government at both the central and the state level. The model seeks to improve healthcare infrastructure through expertise of private sector and better support of public sector. Moreover, we have found that regulatory structure related to the healthcare industry has been very liberal and supportive. The country has allocated good budgetary amounts for various policies and initiatives. Healthcare is one of Indias largest sectors, in terms of revenue and employment, and the sector is expanding rapidly. During the 1990s, Indian healthcare grew at a compound annual rate of 16%. Today the total value of the sector is more than $34 billion. This translates to $34 per capita, or roughly 6% of GDP. By 2012, Indias healthcare sector is projected to grow to nearly $40 billion. The private sector accounts for more than 80% of total healthcare spending in India. Unless there is a decline in the combined federal and state government deficit, which currently stands at roughly 9%, the opportunity for significantly higher public health spending will be limited. THE HEALTHCARE DIVIDE When it comes to healthcare, there are two Indias: the country with that provides high-quality medical care to middle-class Indians and medical tourists, and the India in which the majority of the population livesa country whose residents have limited or no access to quality care. Today only 25% of the Indian population has access to Western (allopathic) medicine, which is practiced mainly in urban areas, where two-thirds of Indias hospitals and health centers are located. Many of the rural poor must rely on alternative forms of treatment, such as ayurvedic medicine, unani and acupuncture. The federal government has begun taking steps to improve rural healthcare. Among other things, the government launched the National Rural Health

Mission 2005-2012 in April 2005. The aim of the Mission is to provide effective healthcare to Indias rural population, with a focus on18 states that have low public health indicators and/or inadequate infrastructure. These include Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Jammu & Kashmir, Manipur, Mizoram, Meghalaya, Madhya Pradesh, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttaranchal and Uttar Pradesh. Through the Mission, the government is working to increase the capabilities of primary medical facilities in rural areas, and ease the burden on to tertiary care centers in the cities, by providing equipment and training primary care physicians in how to perform basic surgeries, such as cataract surgery. While the rural poor are underserved, at least they can access the limited number of government-support medical facilities that are available to them. The urban poor fare http://www.scribd.com/doc/92506120/kmch-1