It covers different problems faced by Indian healthcare system and solutions. Also it covers the impact of digitalisation in the industry and Medical tourism.

1. A case study on
Addressing the Needs of Indian Healthcare Industry
Team Name : One Shot- One Kill
Institute : Indian Institute of Management Raipur
Team Members
Member 1 : Nabil Abdulla P K
Email :15pgp091.nabil@iimraipur.ac.in
Mobile : 7225018091
Member 2 : Habeeb Rahman N K
Email :15pgp079.habeeb@iimraipur.ac.in
Mobile : 7225018079
Member 3 : Aswin R Sekhar
Email :15pgp129.aswins@iimraipur.ac.in
Mobile : 7225018129

2. Current Trend of Healthcare in India
US$
100
billion
2015
US$
280
billion
2022
CAGR 22.9
4.3%
8.4%
4.1%
15.7%
8.4%
9.7%
China brazil India USA UK Global
Spending as % of GDP
74%
26%
Expenditure (%)
Private
Public
Insurance&
Medical
Equipment
15%
Hospital
50%
Pharma
25%
Diagnostics
10%
Industry Break-up
Source : World Bank, BMI Report, Techsci ResearchSource: WHO World Health Statistics

3. Major
Problems
of Indian
Healthcare
System
Changing
Disease
Profile
Accessibility
Issues
Very Low Public
Expenditure
Lack Of
Infrastructure
Paucity
of
Manpower
Fastest Growing
Population
0 2 4 6 8 10 12 14 16
Japan
Russia
China
USA
UK
Brazil
Thailand
Malaysia
India
Indonesia
Philippines
Hospital Beds per Thousand Population,2013
Global Average 2.9
0 1 2 3 4 5
Japan
Russia
China
USA
UK
India
Brazil
Malaysia
Indonesia
Physician per Thousand Population
Global Average 1
Population Rural(72%) Urban(28%)
Hospital % 31 69
Hospital Bed % 20 80
Doctors % 8 92
Doctors/100,000 people 5 50
Spurious Pharma Sales 75-80 20-25
Parameter
Current Annual
Production
To fill the
gap
Physicians 30,558 9,93,500
Nurses 1,14,218 2,510,250
Source : World Bank, BMI Report, Techsci ResearchSource: WHO World Health Statistics

4. How to tackle
Human
Resources
shortage?
maintaining an adequate workforce
•Need 600(100 Seats) Medical College, 1500(60
seats) Nursing College to fill the gap
•Retaining existing workers, including those able to retire
•Create Long term benefits to increase attractiveness
•Redesigning work processes and introducing new
technologies to increase efficiency.
Launch Innovative fee payment
•Provide industry Sponsorship for
lower income groups
•Tie-ups between industry and
training institutes will help courses
affordable
Sector Specific focused training
•Promote infrastructure To increase access to remote
areas
•Curriculum for most allied support professionals is often
not updated and not properly imparted
•Incentivize industry players who offer training in rural
areas
•Affordable training create large pool
Launch Sectoral awareness
programs
•Promote vocational training in the
in rural and remote areas
•Provide information on career
options, career fairs, school
education programs etc.

5. How to improve
infrastructure
Foreign Direct Investment
•High investment opportunity
•Joint Venture
Private Equity Investment
•Tertiary care hospitals in metros/
Tier 2 Cities
•Showing good trend in Pharma
and Biotech systems
Public Private Partnership
•Political Commitment and introduction of requisite regulations
•Incentivize the private sector with an ‘acceptable rate of return
•Education sector to reduce shortage in Human Resource
Tax Interventions
•All new hospitals being set up in Tier II and Tier III towns of
India are given a five year tax holiday
•Reduction in Import duty on equipment from 25 percent to 5
percent
•Customs Duty reduced from 16 percent to 8 percent for
medical and veterinary furniture

6. Future of
Indian
Medical
Industry
Shift in demographics
•Increase of geriatric
population from 96m to 168m
by 2026
•Over 60% of the population
being comprised of health
conscious youth
Dual disease burden
•Urban India facing increasing incidence
of lifestyle disease Eg diabetes, cancer
•Rural India-Communicable disease Eg
typhoid, Dysentery
•50% of spending from inpatients to be on
lifestyle diseases by 2016
Insurance converge
•Out of pocket health expenditure
approx. 67% of nation health
expenditure
•Health insurance by Pvt schemes as
low as 3-5%
•Impact of TPAs
R&D
•Expenditure for health research
increasing by 24% YOY
•Opportunity of contract research in
India
•Market size on contract research
showed a growth of 50% (2008-09)
•Main players: Apollo spectra
research foundation and fortis
research clinical foundation
Digitalization
•Mobile apps
•Sites
•Use of Gadgets &
equipment
•Health record database
Medical Tourism
Single specialty hospitals
•Ease of operation
•Economies of scale
•Competitive pricing
•Higher quality due to greater
specialization
•Eg Aravind eye care, Mohan’s
Diabetic care
Source : Strategic health care solution Pvt Ltd Article : Healthcare: Destination India(2004)

7. Impact of digitalization in urban areas
Target Market
• Aimed at upper middle class and above
• Major portion comprising of lifestyle-related diseases
Implementation
• Aimed at prevention and monitoring
• Uses gadgets and equipment to collect and analyse data
remotely
Health records
• Digitisation of personal health records
• Sharing of digital health care data across different platforms and
applications
• Privacy issue is a main concern
Patients
Equipments
and gadgets
DatabaseAnalysis
Feedback

8. Impact of digitalization in rural areas
Grass root
level
• E-choupal model outreach centers
• Increased role of nurses
Midlevel
• Efficient utilization of doctors
• Screening process in first stage to categorize the
patients based on need
Tertiary care
• Needed cases to receive specialist attention
Specialist
Physician
Outreach centers
with internet
connectivity
manned by nurses

9. Strengths
• Quality service at affordable cost
• Strong presence in advanced healthcare
• International reputation of hospitals and
doctors
Weakness
• Low Coordination between the various
players in the industry
• Customer Perception as an unhygienic
country
• Lack of uniform pricing policies
Opportunities
• Increases demand for wellness tourism
• Demand from countries with
underdeveloped
• Countries with aging population
Threats
• Under-investment in health
infrastructure
• Lack of international accreditation
• Overseas medical care not covered by
insurance
Medical tourism
in India
Wellness
tourism
Alternate
medicine
Advanced
medicine
Services Stress relief,
rejunuvation
center
AYUSH
treatment
Open
transplants,
hip
replacement,
eye
treatment
Key
competitors
Thailand,
South Africa
Thailand,
South Africa
Singapore,
Jordan
India’s
Strength
Medium High High
Alternate medicine
• Undisputed leader in
Ayurveda, unani, siddha and
naturopathy
• 12% CAGR
Wellness tourism
• Undisputed leader in yoga,
meditation, holistic healing
and naturopathy
• 20% CAGR expected
Advanced medicine
• Specialized treatment at low
costs
• Asian and African countries
• 20% CAGR expected
Source : SRI International Research Study

10. 5.16 5.77 6.3 6.57
2.2%
2.7%
2.2%
2.6%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
0
1
2
3
4
5
6
7
2009 2010 2011 2012
MillionFTAs
Foreign Tourist Arrivals (FTA) vs FTAs for medical treatment in
India
FTAs Medical FTAs
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
0
0.2
0.4
0.6
0.8
1
1.2
USA UK Bangladesh Sri Lanka Canada Germany France Japan Australia Malaysia
MillionFTAs
Top 10 source countries of FTAs in India, 2013
FTAs Medical FTAs
Source : KPMG medical value travel report
Foreign Medical Tourist Inflow

11. Thank You