Professional Documents
Culture Documents
February 2009
Executive Summary
Drivers: Challenges:
Poor public healthcare infrastructure High start-up cost and capital
Drivers &
Challenges
P E
Increasing spend on healthcare services
L
Increase in lifestyle-related diseases
Medical tourism
expenditure
Shortage of medical professionals
Competition S M
Nascent but growing medical insurance
A
Private sector dominates with x% market share, led by groups like ABC, EFG and XYZ
New entrants include domestic firms like AA, BB, CC and DD
Foreign entrants exploring the market for partnerships, acquisitions and greenfield projects
25 W
•A huge shortage of beds is a major driver for V
20
investment in a growing industry 15
Specialty hospitals in particular are expected to 10
grow faster than overall industry due to rise in
5
heart diseases and cancer
0
2006 2007 2008 2009 2010
Source:
Drivers
Dismal government performance in
providing healthcare infrastructure Challenges
Growing demand for quality care and High start-up cost and capital
increasing ability to pay expenditure
Mounting instances of lifestyle
Shortage of medical professionals
diseases requiring hospitalization
Rapid growth of India as a destination
for medical tourism
Increasing penetration of medical
insurance
M
Private Sector
growth
• ABC
Domestic International
• AA, USA
• EFG • BB, Dubai
• XYZ • CC, Singapore
• DD, USA
• EE, USA
Source:
Private equity firms are investing significantly in hospitals, both large corporate
chains and standalone regional hospitals
Large hospital chains use acquisitions that offer growth at a lower cost but future
opportunities may be limited
Future
Outlook `
Major hospital chains are investing in “health cities”, which have scale and provide
a host of satellite services
Telemedicine is emerging as a feasible option for public and private sector facilities
to provide basic medical care to rural areas
Despite increase in number of beds with significant contribution by top four private
groups, supply constraints will remain in top cities
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