“INDIAN HEALTHCARE INDUSTRY:MARKET RESEARCH AND DATA ANALYSIS”
A Dissertation Submitted to
Institute for Technology and Management, Bangalore
For the Partial Fulfillment of the PGDM Program
Under the Guidance of: Submitted By-
Siddhartha singh samnta Manisha Chourasia Business development executive ITM/PGDM/2009/23 Religare technova
Institute for Technology and Management
I, Manisha Chourasia, ITM - BANGALORE, project trainee, hereby declare that the following project report titled:
“INDIAN HEALTHCARE INDUSRY MARKET RESEARCH AND DATA ANALYSIS”
is an authentic work done by me. It is not done by anyone before for any college or university. This project report is a part of accomplishment of PGDM program The information and data given in this report are true to the best of my knowledge.I also acknowledge that I took the help of both primary and secondary data collection through various available resources.
ITM - Bangalore
Project Trainee – Religare Technova
Exchange of ideas generates a new object to work in a better way. Whenever a person is helped and co-operated by other, his heart is bound to pay gratitude and obligation to them. I am honored to be attached with prestigious organization. I extend my sincere gratitude to the management of “Religare Technova” for availing me and giving me an opportunity to work with them and assisting me in my project whenever required. I show my sincere gratitude to the respected dean sir Wg.Cdr.A.H.Babu, former director Mr. K.S.Srinivasa Rao, for giving me a platform to do this project.
I thank Mr. Kapil Munjal, Vice President of Religare Technova, who spared his valuable time and gave me opportunity to work and undertake this project in Religare Technova and guided me throughout this project. I would like to express my sincere gratitude towards my team leader and external guide Mr.Siddharth Singh Samnta(Religare technova-business development executive) for providing me the opportunity to work and learn with them and with indispensable help and guidance throughout this project and for inspiring me to strive to achieve the best in difficult situations.
The acknowledgement will not be fulfilled without giving the gratitude to the internal guide Prof. Raghvendran.V who has guided me throughout the project and help me in coming up to the expectation.
PARTICULARS PAGE NO
➢ Executive summary 8
➢ Chapter 1-Introduction 11
• Private healthcare facilities and providers 13
• Government policy 13
• Utilization of Private Health Care Facilities 14
• The Cost of Private Health Care Expenditure 14
• Financing 15 • Policy Concerns 15 ▪ Company profile 16-17 • About the company 17 • About logo 17 • Symbol 17-18 ▪ The Group 18-19 |Awards And Recognition | |19-20 | |Statement Of The Problem 21 | |Review Of Literature | |21 | |The service | |Objective Of The Study | |22 | |Need Of The Study | |23-25 | |Background Of Study | |26 | |Indian Healthcare Industry :An Overview 27-31 | |Ample Opportunities In Pharmaceuticals & Drugs Segment 30 | |Immense Potential In Medical Devices Equipment 31 | |Current Scenario | |32 | |IT And Healthcare | |33 | |Market Demand | |33 | |Budget 2009–2010 And Policy Changes 34 | |Economy And Industry Overview 34-37 | |Industry Structure And Developments 35 | |Opportunities And Threats 36 | |Risks And Concerns 37| |Internal Control Systems 37 | |Rising Disposable Income To Drive Drug Consumption 39 | |Focus Of Indian Companies Shifting From The Us 40 | |Health Infrastructure :A Comparison 41-42 | |Swot Analysis | |43-44 | |Strengths Of The Health Care Industry 43 | |Weaknesses Of Health Care Industry 43 | |Threats To Health Care Industry 44 | |Opportunities For Health Care Industry 44 | |Strategies In Health Care For Private Sector 45 | |Reformation Of The Four Broad Principles 45 | |Challenges | |45 | |Limitations Of The Study | |46 | |Chapter 2-Methodology | |47-48 | |Type Of Research | |47 | |Sampling Technique 47 | |Data Collection | |47 | |Sample Size | |48 | |Actual Collection Of Data | |48 | |Tools Used For Analysis | |48 | |Other Software Used For Data Analysis 48 | |Duration Of Project | |48 | |Location | |48 | |Chapter 3-Presentation And Analysis Of Data And Interpretation 49-62 | |Hypothesis | |49 | |Presentation And Analysis Of Data 49 | |1.Overview Of Data (Breakup) 49 | |2.Age Of Doctors | |50 | |3.Male/Female Ratio | |51 | |4.Specialisation Of Doctors | |52-53 | |5.Number Of Clinics And Hospitals In Each Area 54 | |6.Tech Savviness Of Doctors 55-58 | |7.Consultation Charge By Doctors 59 | |8.Availibilty Of Doctors For Home Visits 59 | |9.24 Hrs Availability | |60 | |10.Percentage Distribution Of Chemist Surveyed In Specified Location 60 | |11.Technical Know-How Of Laboratories 61-62 | |Chapter 4-Findings And Conclusion 63-68 | |Findings | |63 | |Segmentation | |Targeting | |Positioning | |Conclusion | |65 | |Problems Faced During Research 66 | |Learnings | |67 | |Bibilography | |68 | |Annexure | |68-95 | |List of figures- | |Figure 1.1 28 |
o Figure 1.2 40 o Figure 1.3 41 o Figure 1.4 42 o Figure 1.5 42
“By 2020 the pharmaceutical market is anticipated to more than double to $1.3 trillion, with the E7 countries - Brazil, China, India, Indonesia, Mexico, Russia and Turkey - accounting around one fifth of global pharmaceutical sales. Further, incidence of chronic conditions in the developing world will increasingly resemble those of the developed world” - PricewaterhouseCoopers
The study aims to estimate the scope of healthcare information system in Karnataka, the primary focus being health care informatics in south bangalore. The use of the different sources have been classified by provider, namely hospitals, primary health centres, sub-centres, NGO hospitals, charitable institutions, traditional providers, etc; and function, namely inpatient and outpatient care, self-treatment, communicable diseases control, health promotion, etc.
Despite the improving health status of the Indian population, healthcare infrastructure in India has a long way to go towards achieving 100% quality, technology and superior healthcare delivery systems. While the Central (Federal) Government is limited to family welfare and disease control programs, the state governments are responsible for primary and secondary medical care with a limited role in specialty care. Looking at the healthcare indicators and the growing prevalence of non-communicable lifestyle related diseases, both the government and private sector, realize the need to meet this basic demand. Today, the private sector provides 80 percent of the healthcare service
Information Technology (IT) is poised to evolutionise healthcare trade through new thresholds in human connectivity. This paper focuses on the expanding role of IT in three distinct but related categories: (a) design and development of healthcare products and services, (b) delivery systems, and, (c) healthcare administration. Through information power that IT enables, capacities of decision-makers are continually transformed in how they link with each other, in the here and now. This not only promotes conventional trade in services and e-commerce and facilitates worldwide convergence in several aspects of healthcare management and organisation. However, this process also raises fears and anxieties because the pervasive nature of IT and its uneven diffusion increase some vulnerabilities where policy safeguards would be needed. The process of IT diffusion occurs at many different points of impact in the international economy. Thus, policy choices have to cater to a wide range of national and regional needs and circumstances concerning rights to health, rights to trade and rights to development. National policies and international regimes need to strike a harmonious balance between these sets of rights.
The persistence of unresolved conflicts of rights and conflicts of interests point to the need for new international arrangements to be mandated and resourced. The extent to which this can be achieved is uncertain. This uncertainty is traceable to the ways responsibility for healthcare, authority to design healthcare products and systems, and the power to organise healthcare delivery remain separate or come together. The restructuring of private investments to integrate IT with life sciences in public-private partnerships is a sign of the growing significance of IT in healthcare. It is also a reminder of how powerfully IT could be harnessed in pursuit of millenium development goals Healthcare IT market in India has seen a phenomenal growth in the last decade. The market comprises healthcare organizations (hospitals, nursing homes, diagnostic centers, dental hospitals, clinics, ayurveda hospitals, etc.), persons (doctors, dentists, nurses, and other caregivers), and health insurance providers. Private companies play a greater role than the public sector in providing healthcare services as this sector is expected to be financially stronger and well managed. With the growth of the Indian middle class segment, shift toward private healthcare services to obtain more value and service is expected. Indian healthcare industry is at growing stage and is thereby not subjected to strict regulations by the government. There is a general liberalization of trade and investment owing to which most devices do not need import license. Further, no restrictions have been imposed on refurbished medical equipments. In addition, tariff rates applicable on refurbished medical equipments are same as new equipment, which ranges from 5 to 30 percent. The report forecasts the IT spending of the Healthcare Industry in India over the period 2008-2012. It is meant for IT vendors and intends to help them identify selling opportunities in the Healthcare Industry in India. The report Healthcare Industry in India-2009 identifies key business issues being faced by the Healthcare Industry in India. Further, the identified sales drivers can be used to penetrate these accounts or increase current share of the customer's wallet. Also, the report lists leading IT buyers and provides their brief company profile, along with their IT spending
In India healthcare is delivered through both the public sector and private sector. The public healthcare system consists of healthcare facilities run by central and state government which provide services free of cost or at a subsidized rates to low income group in rural and urban areas. With the Indian economy enjoying a steady growth, the industry is heading towards growth phase. The introduction of product patents in India is expected to boost the industry by encouraging multinational companies to launch specialized life-saving drugs. Attracted by the advantages such as lower costs of production and skilled workforce that India offers, these companies are looking to set up research and development as well as production centers there.
Initially the government imposed high custom duty on imported medical equipment making it difficult for private entrepreneurs to set up hospitals. But in post liberalization the duties have come down and some life saving medicines and equipments can be imported duty free.
Although India’s healthcare system has gradually improved in the last few decades, it continues to lag behind those of its neighboring countries. The poor state of healthcare in India may be attributed to the lack of government funding on healthcare initiatives, as estimates reveal that the per capita spending on healthcare by the Indian Government is far below international recommendations. India’s healthcare infrastructure has seen steady improvement in the recent past, but much remains to be accomplished. Despite a steady increase in the number of medical establishments in the country, there still remains a severe shortage of sub-centers, primary health centers, and community health centers. Lack of adequate healthcare is also reflected in the low density of healthcare personnel.
The public healthcare delivery system consists of a large number and a variety of institutions—dispensaries, primary healthcare institutions, small hospitals providing specialist services, large hospitals providing tertiary care, medical colleges, paramedic training schools, laboratories, etc. Despite the size and reach of the public healthcare system, however, India scores poorly on most generally accepted health indicators. This may, in part, explain the growing role of the private sector in addressing India’s healthcare needs. Public-private partnerships have also emerged as one viable method of growing the healthcare sector while keeping public goals in mind. The main objectives of public-private partnerships are to improve quality, accessibility, availability, acceptability, and efficiency of healthcare services. While different states in India have had different levels of success with implementation of such initiatives, it is expected that the private sector will continue to take on an increasing role in India’s healthcare system.
The private sector plays an important role in India's health care delivery system. Through a wide network of health care facilities, this sector caters to the needs of both urban and rural populations and has expanded widely to meet increasing demands. Utilization patterns indicate that health care seekers depend highly on the private sector. Despite the widespread public infrastructure, a higher proportion of health services are provided by the private sector than by government facilities. The private health care sector has grown significantly over time. The growth of this sector has been further triggered by a number of factors, including a liberalized economic policy, rapid influx of medical technology, growing deficits of public sector hospitals, and a rising middle income class. Its growth has profound implications for the existing character of the Indian health care system and its future course. Recent studies indicate that private health care significantly affects both the cost and quality of available health care services in India. Although cases of superfluous and high cost of services rendered by private physicians and hospitals have been reported, there is no evidence that these result in any greater use of public facilities. Significantly, despite the problems resulting from the growth of the private sector, there has been little effort to draw up appropriate market or regulatory mechanisms to ensure its desirable growth. This is unfortunate since it is well known that leaving the health care to the market forces does not necessarily lead to an effective and efficient health care system. The role of the state and self-regulatory bodies is important in minimizing the unintended and undesirable consequences emanating form the growth of the private sector. At some point of time it becomes imperative for the stakeholders to address the issues of equity, efficiency and quality of care in this sector. The paper makes an attempt to address the role of these stakeholders in addressing various concerns. The papers specifically discusses (a) the exiting status of regulations (self-regulation or government legislations) to monitor and control the private health care sector practices; (b) the performance of these legislations in ensuring appropriate development of this sector; and (c) The possible strategy for implementation of the reform process. This paper addresses these questions in the context of the experience of India. After describing the broad characteristics of the private health sector in India, it examines the major policy concerns originating from its growth. It assesses the current regulatory environment and its implications for the process of health reform.
Private Health Care Facilities and Providers-
The structure of the health care system in India is complex and it includes various types of providers. These providers practice in different systems of medicines and facilities. The providers and facilities in India can be broadly classified by using three dimensions: ownership styles (public, not-for-profit, and for-profit); systems of medicine (allopathic, homeopathic, and traditional); and types of organization (hospitals, dispensaries, and clinics). These dimensions are interdependent and overlapping in nature. ...