Health-Care Market in India

Managing Marketing Program

Prof. Shirish Rajadhyaksha
TEAM
• Akshata M.
• Ankur A.
• Bruce S.
• Rakshak N.
• Ritu C.
• Vallaki A.
 Introduction
Heath Tourism is to provide World Class Health treatment at competitive affordable prices”.

“One of the hottest sectors in India” (Public Health Foundation of India)

“A multibillion dollar industry”

“India – An International medical tourisms hub”

Dental Surgery

Joint Replacement Surgery

2
Introduction

Why is the Health Care Tourism Emerging ?

Out-of-pocket health expenditure.

Inefficient Public Heathcare system.

Non coverage of certain medical treatments.

Price discrimination of treatments amongst different countries.

SWOT of Health Care Industry of India
STRENGTHS

THREATS WEAKNESSES
SWOT

OPPORTUNITIES'
Fastest growing economy in the world with GDP of US$ 3.63 trillion
Average earnings per tourist exceeded top tourist places such as
France, Spain Italy.
Rich and unique cultural heritage
Majority of educated Indians communicate in English
Number of patients visiting India grew from 10,000 in 2000 to
1,00,000 in 2005
Privatization of healthcare sector resulted in 78% of healthcare market
State of the art medical facilities performing complex surgeries
Indian Pharma companies met the stringent requirements of US FDA
Indians hospitals recognized by major foreign players
Alternative healing therapies like Ayurveda, Yoga & Naturopathy
Growth of International Standard Hospitals

Apollo Hospital Max Hospital

Delhi Fortis Hospital,
Hyderabad
Delhi

Jaslok Hospital,
Breach Candy Hospital Wokhardt Hospital
Mumbai Bangalore
SWOT of Health Care Industry of India
STRENGTHS

THREATS WEAKNESSES
SWOT

OPPORTUNITIES'
Public sector spends about 1.02% of GDP on healthcare. WHO
recommends minimum 5%
Leadership Crisis…. Lack of Managerial skills
Poor Accessibility
80% of health spending is in urban areas whereas 74% of India’s
population stays in villages
Almost 85% of hospitals are under Private sector which are way
beyond the reach of the majority of Indian populace.
Lack of basic hygiene
Lack of basic infrastructure
Foreigners are considered as easy targets to earn an extra buck
Price discrimination for tourists at various tourist places
Poor connectivity amongst various cities and towns
SWOT of Health Care Industry of India
STRENGTHS

THREATS WEAKNESSES
SWOT

OPPORTUNITIES'
OPPORTUNITIES

Globalisation of Information – availability of bench marking data,

telemedicine & video conferencing – Internet knowledge.

Governmental relaxations – imports, custom duties etc.

Central & State Governments participation in development of the

public sector in healthcare

Indian culture & traditions. Yoga, Ayurveda, homeopathy

SWOT of Health Care Industry of India
STRENGTHS

THREATS
THREATS WEAKNESSES
SWOT

OPPORTUNITIES'
THREATS

Thailand - has higher number of Health-care tourism than in India. In

2005, 11.5 million tourists visited Thailand whereas 3.92 million visited
India

Costa Rica - has proximity to US

Security threats due to major terror attacks in cities.

Recommendations

Priority or Infrastructure status to the Health Care Sector

The current ratio of bed: population of 860 beds:1mn population stands
nowhere as compared to the WHO norm of 3960 beds : 1mn population.
A direction towards a public and private combined healthcare spent to reach
5% of GDP over the next 3 yrs.
Focus on inadequate water, sanitation and sewage management to halt the
rise of communicable diseases. The national disease surveillance program
needs to be more effective.
Decrease in capex by the Ministry of Health has resulted in lack of adequate
modernization of Public Health infrastructure. The capex expenditure must
move upwards of 10% of the total outlay.
“Healthcare Parks“ on the lines of Software Technology parks which are
subsidized by the Govt should be started to provide subsidized tertiary care
 to the less affording and those sponsored under the Govt healthcare
schemes.
National Policy Direction on Public-Private partnership in healthcare facilities.
 GDP

10
9
8
7
6 GDP
5
4
3
2
1
0
2003-04 2004-05 2005-06