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Setting Up A Hospital In India | |
| Setting Up a Hospital in India. Investment Opportunity in Healthcare Industry. Start a Hospital in India. The Healthcare market can increase three fold to US$ 372 billion by 2022. The hospital services’ market represents one of the most lucrative segments of the Indian healthcare industry. Various factors, such as increasing prevalence of diseases, improving affordability, and rising penetration of health insurance are fuelling the growth in the Indian hospital industry. Several private players are also entering the sector with new plans of establishing hospitals and health centers around the country. Healthcare has become one of India’s largest sectors - both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players. Healthcare scenario is fast changing all over the world. Today Indian health care industry is business driven and one can see entry of all sorts of service providers to be part of this massive multi core business, growing at the rate of 13% annually. Globalization and privatization have also changed the functioning of the healthcare system. The private health network is spreading fast throughout the country. Economic, political, social, environmental and cultural factors are influencing the health care and the delivery of the health care services. The Indian healthcare market, which is worth around US$ 100 billion, will likely grow at a CAGR of 23 per cent to US$ 280 billion by 2020. The healthcare market can increase three fold to US$ 372 billion by 2022. There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which accounts for over 70 per cent of the population, is set to emerge as a potential demand source. India’s corporate hospitals are set to gain on rapid growth in health care industry in India. Healthcare has become one of the largest sectors in terms of employment and revenue generation in India comprising hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The factors supportive of growth are growing incidence of lifestyle diseases, more medical awareness, technological advancements and increasing investments by public and private sector. The health care industry is witnessing healthy growth thanks to increased disposable incomes, insurance coverage, and health awareness among the population. The healthcare sector in India remains one of the largest sectors in terms of both employment and revenue generation. This significant growth within the healthcare industry has been facilitated by a rapid privatization of healthcare (particularly in secondary and tertiary healthcare services). Hospitals constitute ~70% of Indian healthcare market with increasingly dominant role of private sector. Private players have established a dominating presence in specialty health care. The market size of private hospitals is expected to grow at a CAGR of 19.2 % to reach ~U.S. $ 120 billion by 2020 from its current size of ~U.S. $ 50 billion. Key Drivers for Growth of Hospital Business in India • 500 Million Additional middle class by 2025. • Less than 25% of population is currently covered by insurance. At the current rate of growth of insurance business the Insurance penetration is likely to reach up to ~ 45% of population by 2020. • Growth in insurance business is most positive for private sector hospitals. Health insurance provides affordability to high end medical treatment. 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