1. Fastest growing market in APAC
Indian Healthcare IT
Market
Concept Note
Dr AC Mullick, MS
CEO, SHS Pvt Ltd
www.seedhealthcare.com

2. Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities

3. Healthcare delivery market
2008 2013
The healthcare 63
delivery market in
India is projected to
have remarkable and 35
sustained growth
over the next
decade, due to
marked shortage of
capacity and huge Healthcare (Billion USD)
unfulfilled demand
Source: AHEL-CRISIL independent equity
research, 22 Sep’ 2009

4. Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities

5. Physicians per 10,000 population
USA Germany China Egypt
India has much Thailand Sri Lanka India
fewer physicians 27
per capita than 35
Egypt or China. 14
24
Those that are 3
there are mostly 6
6
concentrated in
urban areas 0 10 20 30 40
Source: WHO world health statistics, 2010

6. Nurses per 10,000 population
USA Germany China Egypt
Egypt has more Thailand Sri Lanka India
than twice as many 98
nurses per capita 80
than India. We lag 10
34
behind Sri Lanka too 14
17
13
0 50 100 150
Source: WHO world health statistics, 2010

7. Hospital beds per 10,000 population
USA Germany China Egypt
SriLanka, Egypt, Thailand Sri Lanka India
Thailand and 31
China, all have more 83
beds per 10,000 30
21
population than 22
India. 31
9
India will need to
add 1.75 million 0 20 40 60 80 100
beds in the next 15
years Source: WHO world health statistics, 2010

8. Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities

9. Total expenditure as % of GDP
India lags behind USA Germany China Egypt
Thailand Sri Lanka India
Egypt and China in
allocation of 15.7
funding for 10.4
4.3
healthcare as 6.3
percentage of GDP. 3.7
That is slated to 4.2
4.1
grow over the next
decade to around 0 5 10 15 20
6.5%
Source: WHO world health statistics, 2010

10. Per capita total spending in USD (PPP adjusted)
Indian per capita USA Germany China Egypt
Thailand Sri Lanka India
spend on
healthcare is less 7285
than half of the 3588
233
other billion plus 310
population 286
country, China. It is 179
109
miniscule compared
to what the 0 2000 4000 6000 8000
Americans and
Germans spend Source: WHO world health statistics, 2010

11. Per capita Govt spending in USD (PPP adjusted)
Indian per capita USA Germany China Egypt
Thailand Sri Lanka India
Govt spend is
actually 1/3 of 3317
China and Sri 2758
104
Lanka, ¼ of 118
Egypt, and 1/7 of 209
Thailand 85
29
0 1000 2000 3000 4000
Source: WHO world health statistics, 2010

12. Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities

13. Infant mortality per 1000 live births
Only Pakistan has a USA Germany China Egypt
Thailand Sri Lanka India
worse infant
mortality rate than 7
ours in this region 4
18
(72). Sri Lanka is 20
four times 13
better, and 13
52
Germany is 13
times better on this 0 20 40 60
key state of health
indicator Source: WHO world health statistics, 2010

14. Maternal mortality per 1000 live births
This is the most USA Germany China Egypt
Thailand Sri Lanka India
shameful health
indicator of this 11
country. 130,000 4
45
women die in child 130
birth every year in 110
this country, equal 58
450
to 676 fully
occupied airbus 0 100 200 300 400 500
320s crashing/year
Source: WHO world health statistics, 2010

15. Tuberculosis prevalence per 100,000 population
India has some of the USA Germany China Egypt
highest infectious diseases Thailand Sri Lanka India
prevalence in the world
All of these data 3
and the lack of 2
88
infrastructure can 24
be only addressed 160
73
by increasing 190
funding which is
now happening via 0 50 100 150 200
NHRM and the
Source: WHO world health statistics, 2010
private sector

16. Market overview
Healthcare infrastructure
Healthcare investments
Healthcare indicators
Opportunities

17. Market size and projections
2010 2020 2010 2020
800 738 8000
6750
600 6000
400 4000
243
200 2000
860
0 0
Healthcare (Thousand Crores) Healthcare IT (Crores)
*Source: Adapted from Zinnov study on IT in Indian healthcare sector, Sep’ 2010

18. India has the fastest growing healthcare IT
market in Asia, with an expected growth rate of
22%, followed closely by China & Vietnam. In
fact, the Indian healthcare technology market is
poised to be worth more than US$ 254 million
by 2012.
*Source: Springboard Research

19. Growth drivers: demand supply gap
Beds/Nurses/Doctors per 10,000 population
USA Germany China
Growing demand Egypt Thailand Sri Lanka
for better health India
infrastructure due
to increasing
population, and
perceived adverse
economic effects of
disease burden on
productive sections 0 50 100 150
of the population Source: WHO world health statistics, 2010

20. Growth drivers: private sector
Private Expense as % of total expense
India Brazil China Russia
India has the
maximum private
73.8
expenditure on
healthcare amongst 58.4
all the BRICS 55.3
economies. Sectoral 35.8
growth is being
funded and driven by
0 20 40 60 80
the private sector
Source: WHO world health statistics, 2010

21. Growth drivers: government policy
1983 - 2000 2000 onwards
• Subsidy worth Rs 650 • Benefits of Section 10
billion provided to extended to financial
institutions providing long
stimulate private
term capital to hospitals
investments, including
• Benefit of Section 80-1B to
– Custom duty exemptions hospital >100 beds in rural
on equipment imports areas
– Tax and infrastructure • Reduction in customs and
development related import duties on medical
exemptions equipments
*Source: Ernst and Young Research

22. Healthcare IT application market
Application Market
Realized Revenue
2010: 285 Cr
2010: <100 Cr
2020: 2250 Cr
Opportunities
75 companies @ .25-1 Cr/yr
20 companies @ 1-5 Cr/yr
Top 5 companies
showing poor top line
5 companies @ 5-15 Cr/yr
and bottom line growth