Healthcare An Unprecedented Opportunity

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HealthcareAn Unprecedented Opportunity
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Healthcare

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

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India - An Introduction

• Population
• States/UTs
• Geographical Area
• Languages recognised
• Business language
• Per Capita Income
• GDP

Over 1 bn 35 3.3 mn sq kms 22 English US
534 US 650 bn
(at factor cost at current prices) 1USD43.54
INR (as on July 4, 2005)
SourceCSO Statistics
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India - Fast pace Growth

• Largest democracy
• 4th largest economy by PPP index
• 6th largest energy consumer
• ForEx reserves skyrocket from US 42 bn (2001)
  to
• US 133 bn (February, 2005)
• GDP growth to continue between 6-8
• 3rd largest economy by 2050 Goldman Sachs
• Leading in IT BPO
• Oil Gas and Biotechnology sunrise industries

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India - Leading the world

• Hero Honda - largest manufacturer of motorcycles
• Moser Baer - among the top three media
  manufacturers
• in the world
• Pharmaceutical Industry - 4th largest in world
• Walmart, GAP, Hilfiger sources more than
• USD 1bn worth apparel from India
• 100 Fortune 500 have set RD facilities in India
• including GE, Delphi, Eli Lilly, HP, Heinz
  and Daimler
• Chrysler

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Healthcare

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

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Healthcare Delivery Market
Sector
Direct employment
Revenues/GDP
Million, 2000-2001
Per cent, 2000-2001
Healthcare
Education
Retail banking
Power
Railways
Telecom
Hotels, restaurants
IT
Revenues Largest service industry
Employment Second largest after education
Source National Accounts Statistics, 2001
Manpower profile CBHI McKinsey analysis
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Healthcare Delivery Market Size
US 18.7 bn
2000-01
5.2 of GDP
US 45 bn
2012 (projected)
8.5 of GDP

• Growing at 13 p.a
• Expected to grow at 15 over next 4-5 years

Source CII McKinsey
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Rising Healthcare Spending
5.2 of GDP
Total Healthcare market
Healthcare delivery market
Pharma market
India spent US 22.4 billion on healthcare (2001)
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Household - Major Consumer
Direct household spend
Private/social/ community insurance
Employers spend
Governments spend
Two-thirds of healthcare spending is out-of-pocket
100 USD 1,830 million
SourceNSSOCMIENCAERAnnual ReportsGovt
BudgetsEconomic Survey 2000-01
Out-of-pocket
Prepayment
2000-01
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Healthcare - Private sector Dominates
Government public employers
Private providers
In terms of delivery, private providers capture
63 of US 1,830 million spend
Source CII -McKinsey
100 USD 1,830 million
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Health Insurance in India

• Liberalising insurance sector

• Multinationals building local partnerships

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Health Insurance in India

• Health insurance cover 3 - 4 of
• 1 billion population

• Growth of insurance cover 100
• in last 2 years

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Healthcare

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

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MNCs in India
Philips emerging as number two in Indian
medical systems market
Siemens leading manufacturer of medical
equipment
Drager Medical joint venture between Dragerwerk
AG AG and Siemens AG
Wipro GE largest medical systems sales
Medical Systems service provider in India
Proton Health entering India with digital health
Care monitoring devices
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Healthcare

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

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Invest in India
India requires US 25 billion in fresh
investments over the next 8-10 years
Source Indian Healthcare Federation, CII
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Invest in India

• Curative and preventive in
• primary, secondary and
• tertiary care rehabilitative-
• geriartric and others
• Doctors, managers, nurses,
• technicians
• Medical equipments
• service equipments
• Hospitalisation
• Medicines disposables

• Service providers
• Manpower training
• Infrastructure
• Insurance
• Materials

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Preventive and curative care
Rising demand for multi and super-speciality
services
Shift from infectious to lifestyle diseases
85 of inpatient spend on five categories
Cardiology, Oncology, Trauma, Acute Infections
and Maternity
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Rising demand for quality healthcare
In ten years between 1993-94 and 2001-02,
aggregate household expenditure on health
services increased by an annual compounded rate
of 9.3
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Corporatisation of Indian healthcare
Corporate hospitals 150
Private hospital beds 32 of total
hospital beds
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Health Insurance - A vast untapped market
Only 2.5 million or .25 of population insured
315 million people in India can afford insurance
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Health Insurance - A vast untapped market
Projected insurance base 2005 30 million
2010 160 million
Source India Country Commercial Guide 2002
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Preventive healthcare

• Addressable population for preventive
• healthcare check-ups 160 million

Year - on - year growth more than 20-25 over
2001-2003
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Healthcare BPO - Promising dynamism
Medical billing
Claims adjudication
By 2008 USD 4.5 billion opportunity employing
200,000 people
Disease coding
Forms processing
Source NASSCOM
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Telemedicine - Diversifying opportunity

• Tap the large Indian landscape

• Rural population of 650 million people

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The Indian Biomedical Devices Market

• Size US 1.5 billion

• Growing demand for medical equipment

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Healthcare

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

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Demographic Advantage
Growing population 2.5 annually
Expanding working population group 65 by
2020
Improving life expectancy Age 15-54 2001
55 2010 59
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Infrastructure
117 tertiary medical colleges and hospitals
1,200 ESI and PSU hospitals
Tertiary Care
4,400 district hospitals
2,400 Community Health Centres
Secondary Care
23,000 Primary Health Centres 132,000 Sub-centres
Primary Care
1500 urban health posts
Urban
Rural
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Medical Tourism

• Healthcare facilities - high quality at low cost
• Edge in surgical treatment

Potential to earn USD 1 billion from medical
travel
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Cost Advantage
India
Treatment
US
5,00,000
40,000
Liver Transplant
30,000
5,000 - 7,000
Heart surgery
Bone Marrow Transplant
2,50,000
30,000
All figures in USD
Cost of advanced surgeries in India is
attractively low compared to US
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Quality Advantage
Services and facilities in India
Low in cost High on quality
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Policy Advantage
Increase in 5 of GDP by 2010 health
spend Increasing budgetary Over 20 per
annum allocation 2005 Union Budget
Infrastructure status not conferred 2005-06
Custom Tariff on Rates reduced from20 to
15 medical equipment
March 2005
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Healthcare

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

36
Contact in India
Indian Healthcare Federation c/o Confederation of
Indian Industry The Mantosh Sodhi Centre 23,
Institutional AreaLodi RoadNew Delhi - 110
003. Tel [phone]-97 Fax 00 91 11
2462 6149/2461 5693 E mail c.banerjee_at_ciionline.or
g