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Report
Indian Healthcare Industry to Double in Value by 2012: KPMG
Rising income levels, changing demographics and shift in
disease profile from chronic to lifestyle diseases to propel the growth
The health infrastructure across Indian states is projected to grow by an average
of 5.8 percent per annum between 2009-2013, taking the total expenditure in
2013 to USD 14.2 billion, suggests the Indian Healthcare edition of KPMG's trend
monitor. Of the 32 Indian states that the report considered, the six states
of Maharashtra, Rajasthan, West Bengal, Uttar Pradesh, Tamil Nadu and Andhra
Pradesh are forecasted to represent approximately 50 percent of the expenditure
for 2009-2013 period.
Speaking on the release of this report, Pradip Kanakia, Head of Markets and
Healthcare Services, KPMG, said, "While the Indian healthcare system has
grown manifold over the past few years, it has yet not been able to keep pace
with the rapid rise in the population. One example of that is the availability
of hospital beds in our country —against a world average of four beds per
1,000 population, India lags behind at just over 0.7 presently.” He added
"There is a dire need to introduce some radical reforms in the healthcare
infrastructure development process — use of PPP models on a larger scale;
foreign investments are some which could be considered."
The report suggests that there is a growing need to deal with the issues of
urban healthcare infrastructure as rural to urban migration has significantly
increased the demand for these services. The report also looks into the fact
that the Indian healthcare system is controlled by respective state authorities,
presenting an opportunity to improve responsiveness to healthcare needs at a
more local level. The KPMG analysis suggests that there is uneven focus on healthcare
infrastructure in India, the variety of organisational structures and processes
in healthcare delivery may result in greater inequalities between geographical
areas.
Said Ameeta Chatterjee, Director - Corporate Finance, KPMG, "There has
been an increasing awareness of private sector involvement in meeting the requirement
of the country's health services requirement. The Indian solutions that will
evolve need to be focussed on developing affordable, low-cost basic healthcare
services with scalability and sustainability as key drivers.”
The report analyses and suggests that there is opportunity to improve responsiveness
to country's healthcare needs at a more local level due to uneven focus on healthcare
infrastructure in India. This can be attributed to the healthcare system in
the country which is controlled by respective state authorities. The variety
of organisational structures and processes in healthcare delivery may result
in greater inequalities between geographical areas. There is a growing agenda
to deal with the issues of urban healthcare infrastructure as rural to urban
migration has significantly increased demand for these services.
The report states that the Indian healthcare industry is estimated to double
in value by 2012 and more than quadruple by 2017. The main factors propelling
this growth are rising income levels, changing demographics and illness profiles,
with a shift from chronic to lifestyle diseases. This is likely to result in
considerable infrastructure challenges and opportunities.
- The healthcare sector in India is undergoing
a phase of reform propelled by rapid economic growth. Apart from the
healthcare providers, emerging markets such as diagnostic chains and
medical device manufacturers, are attracting increasing amounts of investment.
- In comparison to all 32 states, Maharashtra
forecasted to maintain its dominance as the state with highest cumulative
healthcare infrastructure expenditure, with spend of $ 7.3 billion between
2009 - 2013.
- Twelve states spent less than $100million
each in 2006, together representing less than 4.5 per cent of total
national expenditure and 3.6 per cent of the population.
- Manipur and Nagaland expected to grow the
fastest on development of healthcare expenditure— over 8 per cent,
against an overall national average of 5.8 percent (between 2009 - 2013).
- Uttar Pradesh that hosts over 16 percent
of the population is presently amongst lowest spenders in terms of expenditure
per person (less than $ 5 as per 2006 figures, expected to grow to USD
25 between 2009-2013).
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EH News Bureau
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