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CHAPTER 1
INTRODUCTION
Healthcare sector is considered one of the largest sector in terms of both revenue and
workforce employment. The estimated valuation of the sector was close to USD 74 billion as
at financial year 2011-12.
A large and growing population, a booming economy, rapid urbanization which has
expanded the middle class, rising diseases and increased awareness level has enable the
sector to grow at much higher rate.
The sector is dominated by private players capturing about 70% of the total market delivery
in India. Leading from the front is the Hospital industry which is estimated to be around USD
54.7 billion by 2012 and contributes around 82% of the total revenue generated by healthcare
industry as a whole. However, there remains a significant gap in terms of number of beds or
number of doctors available which is far below the World Health Organizations (WHO)
requirement of 1:250. Apart from this the sector is currently surrounded with multiple issues
in regards to infrastructure, availability of adequate investment, skilled human resources.
Although the government has taken several steps in eliminating healthcare related issues but
it still remains insufficient and a lot is needed to be done. Giving due importance to the sector
the share of healthcare in 12th five year plan allocation of total funds is increased to 2.5% of
the GDP. The current plan is a step ahead in the journey towards quality healthcare for all.
To find out the satisfaction level of the customers with their respective hospital.
HYPOTHESIS
: There was no growth in healthcare sector in past few years.
: There was growth in healthcare sector in past few years.
: There is no use of modern machine in hospitals.
: There is use of modern machine in hospitals.
: Most of individuals have no health insurance for any uncertainty.
: Most of individuals have health insurance for any uncertainty.
LIMITATIONS
The project has some limitations because it is totally based on efforts of individuals. Peoples
may be careless and may not give correct answer to the questions, because of so many
reasons.
Language is one of the worst problem, some of the consumers are unable to understand
English.
CHAPTER SCHEME
Chapter 1
Introduction
Healthcare
Objective of study
Research problem
Research methodology
Chapter 2
Review of literature
Chapter 3
Questionnaire
Bibliography
RESEARCH METHODOLOGY
To make a comprehensive study on Emerging Trends in Healthcare Sector and know the
various diseases prevailing in the area.
Type of research
Descriptive type research has used to complete the project.
DATA COLLECTION:
1- Primary Data
Keeping in view the nature of this study, questionnaire method was found to be most
effective. The questionnaire is structured i.e. it is presented having form question in
sequence, and non-disguised
2- Secondary Data
Secondary Data which are used for research to know the history of Healthcare sector are
collected from already available resources like internet and other sources like magazines and
journals printed by top cooperates.
SAMPLE SIZE
CHAPTER 2
REVIEW OF LITERATURE
As the research work on healthcare sector is large which is usually by top cooperates and as
their reviews are given below
Emerging Trends: Indian Healthcare Industry, by Onicra Credit Rating Agency of
India Ltd., December 2012.
SMEs can concentrate only in few cities and towns as they lack the infrastructure & funds for
registering themselves at national level. Healthcare industry requires high initial investment
and the entrepreneurs are unable to arrange such amount of capital investment hence this
sector is not growing at a fast pace. Due to limited capacity restriction these SMEs cannot
operate beyond a certain level. Changing economic scenario is putting pressure on investors
as sophisticated machinery needs to be imported and rupee devaluation is digging deeper
hole in the pocket of investors. Lack of information on market segmentation and demand
makes SMEs handicapped in terms of planning and targeting the profitable market. Lack of
skilled human resources is one of the major challenges faced by SMEs as the skilled
resources are hired by big corporate at a lucrative pay package and the SMEs are left with no
other option than compromising on quality. The Public Private Partnership (PPP) model is
lacking in the SME sector, if PPP model is implemented intensively it can enhance the
quality of health care services as funds required for improving the infrastructure will be
provided by government and management skill can be given by the SME unit. This initiative
will make healthcare facilities affordable for the middle and lower strata of the society. One
of the major challenges which the industry as whole is facing is paucity of bed. India
currently has 1 bed per 1050 people as compared to 1 bed per 250 people. Due to lack of
infrastructure and investment the SMEs are unable to bridge this gap.
CHAPTER 3
INDIAN HEALTHCARE SECTOR
The Indian healthcare delivery market is estimated at US$ 18.7 billion and employs over four
million people, making it one of the largest service sectors in the economy today. Total
national healthcare spending reached 5.2% of GDP, or US $34.9 billion in 2004 and is
expected to rise to 5.5% of GDP or US $60.9 billion by 2009. This includes the
pharmaceuticals market, government and private spending. Private segment constitutes bulk
and growing rapidly, to reach $38 billion by 2012. There are various gaps in the Indian
healthcare market, which also present a vast opportunity. Good healthcare in India is in
extreme short supply. Hospitals in India are running at 80-90 per cent occupancy. With the
demand for healthcare far exceeding supply, Indias healthcare industry is expected to grow
by around 15 per cent a year for the next six years.
There are some economic factors which make India such an exciting market. Since
healthcare is dependent on the people served, Indias huge population of a billion people
represents a big opportunity. The middle income group in this vast base is also a large 300
million. India spends only 1% of its GDP on health, translating into $35 per capita. France
spends 10.4% and Japan 8%. A significant portion of the population receives inadequate or
no health care, specifically 25.7% living below the poverty line and those who have only the
public health system to rely on. National Family Health Survey for 2005-06 estimates 453
deaths per 100,000 women; higher than Cambodia, Bolivia and Botswana. India accounts for
20% of the world's maternal deaths, with a woman dying every five minutes. 20% of deaths
of children worldwide under the age of 5 occur in India. The private healthcare sector in
India accounts for over 75 per cent of total healthcare expenditure in the country and is one
of the largest in the world. Indias healthcare sector, however, falls well below international
benchmarks for physical infrastructure and manpower, and even falls below the standards
existing in comparable developing countries.
Given the growing demand, the emergence of reputed private players, and the huge
investment needs in the healthcare sector, in recent years, there has been growing interest
among foreign players and non-resident Indians to enter the Indian healthcare market. There
is also growing interest among domestic and international financial institutions, private
equity funds, venture capitalists, and banks to explore investment opportunities across a wide
range of segments. This study examines the status and the major brands in the key segments
of the healthcare sector, i.e., in hospitals. It also analyses the implications for the overall
healthcare system.
2012
100%=$34.2bn
100%=$78.6bn
14%
Infrastructure
14%
5%
Medical Equipment
5%
35%
Bed Revenues
36%
18%
Pharmaceuticals
16%
2%
Health Insurance
5%
1%
2%
11%
Health Outsourcing
9%
3%
3%
1%
Clinical Trials
1%
3%
3%
1%
Medical Textiles
1%
6%
Medical Consumables
5%
Source: The Business World, Ernst & Young Survey; June 2012
Share of tertiary care in the total healthcare market is around 15-20%. Market for tertiary
care expected to grow at a faster rate, due to rise in complex in-patient ailments such as heart
diseases and cancer.
10
While rising incomes and growing literacy are likely to drive higher per capita expenditures
on healthcare, the shift in disease profiles from infectious to lifestyle-related diseases are
expected to raise expenditures per treatment. Lifestyle-related diseases are typically more
expensive to treat than infectious ones. In 2001, the average inpatient cost for lifestylerelated diseases (cardiac problems, digestive issues etc.) was US$ 658 compared to US$ 91
for infectious diseases.
Indias disease profile is expected to follow the same pattern as in developed economies.
Based on demographic trends and disease profiles, lifestyle diseases - cardiovascular, asthma
and cancer have become the most important segments, and in-patient spending is expected to
represent nearly 50 per cent of total healthcare expenditure. In the inpatient market, the share
of infectious diseases is expected to decline from 19 per cent in 2004 to 16 per cent in 2008.
The number of cardiac-disease-related treatments in India is expected to grow from 1.5
million to 1.9 million per year over 2004-08, which would constitute 5.1 per cent of all
treatments, The spend share of inpatient cardiac treatment is estimated to grow to 19 per cent
of the total in 2008 from 16 per cent in 2004. This would drive a 13.4 per cent CAGR in the
inpatient cardiac care market from US$ 1.2 billion in 2004 to US$ 2.04 billion in 2008. The
average realisation per inpatient for cardiac related treatment is much higher than for other
disease segments.
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2012
Cardic
6%
Oncology
4% Diabetic
3%
Others
43%
Orthopedic
3%
Gynaecological
5%
Neurology
3%
Urology
4%
Gastro Intestinal
12%
Fever
8%
Accidents
9%
There is favourable increase in percentage of working class population from 32% in 2006 to
36% in year 2016. General awareness, literacy rates and patient preferences in healthcare
decisions is growing. National Health Policy, 2002 has laid strong emphasis on the policy
goal of better engaging patients in their healthcare decisions.
Increasing health consciousness among common people has created avenues for preventive
healthcare. Hospitals have started witnessing a number of patients who visit for health checkups as a preventive measure. The various health check-up packages offered include a
combination of CBC, blood sugar, cholesterol, urine, stool, digital chest X-Ray, ECG,
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general examination, blood group, blood sugar, liver profile, proteins, lipid profile,
cholesterol, and renal profile. Around 70 per cent of treatment decisions in the country are
based on lab results. This trend has further led to newer avenues for companies involved in
carrying out diagnostic tests.
In the domestic market, health spending will be sustained by two demographic trends:
increased life expectancy and an ageing population. Life expectancy, which averaged 63.3
years in 2000-04, is expected to increase to 65.1 years in 2005-09 and to 66 years in 2006-10.
The proportion of the population aged 65 years and over is also on the rise, and will increase
from 4.7 per cent in 2000 to 5.3 per cent in 2005 and 5.8 per cent in 2010. Although the rate
of ageing in India is slower than the developed world, the large population makes any
increase significant in terms of absolute numbers, and therefore also in terms of market
potential.
The healthcare systems in Europe and the United States are under severe pressure;
particularly the National Health Service (NHS) in the UK, which has a long list of patients
waiting for over a year for surgery. In the US the healthcare crisis has a different dimension.
Around 50 million citizens are uninsured, with even the insured having to pay dearly for
treatment. Further, the shortage of paramedical professionals such as nurses has aggravated
the situation. Patients from the US are now regularly beating a path to India, as many of their
insurance companies have entered into tie-ups with private Indian hospital chains.
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Indias value proposition goes far beyond cost; quality second to none
Cost is not the only factor weighing in Indias favour. Escorts Hospital, for instance, is one of
the only handful treatment facilities worldwide that specialise in robotic surgery. The death
rate of coronary bypass patients at Escorts is 0.8 per cent. By contrast, the 1999 death rate for
the same procedure at New York-Presbyterian Hospital was 2.35 per cent, according to a
2002 study by the New York State Health Department. The overall success rate of cardiac
bypasses is 98.7 per cent in India, as opposed to only 97.5 per cent in the United States.
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As discussed earlier in the report though the country has been able to control diseases like
polio, leprosy and tetanus but it has to now face a new breed of lifestyle related diseases like
diabetes, obesity and cardiovascular ailments has cropped up. The present generation which
is accustomed to sedentary work, alcohol consumption and smoking are more prone to such
lifestyle related diseases. According to World Health Statistics 2012 about 61.3 million
people in India are diabetic amongst whom about 11% of the male population (adult) and
10.8% of the female population have shown a significant rise in blood glucose. Similarly, as
per National Family Health Survey (NFHS) about 13% of the women population and 11% of
the men population in India is obese.
There is a significant demand for specialty healthcare facilities like oncology, nephrology
and ophthalmology in smaller cities. Some of the major healthcare facilitators are entering
top cities in India.
One of the main external factors which are contributing to the growth of Indian Healthcare
sector is the rise in medical tourism. According to a leading research agency the medical
tourism market is expected to expand at a CAGR of 27% to reach USD3.9 billion in 2014
15
from USD1.9 billion in 2011. India as a well-educated, English speaking nation offering
quality private hospitals and medical facilities at a relatively lower cost is able to attract
foreigners. According to industry estimates, in some of the cases India provides best in class
treatment at one tenth of the cost incurred in the United States of America.
The five year plan adopted an inclusive approach towards health care which includes
equitable and comprehensive individual health care, improved sanitation, clean drinking
water, nutritious food, hygiene, good feeding practices and development of delivery systems
responsive to the needs of people. Some of the main goals set by the five year plan are given
below
Reducing Maternal Mortality Ratio (MMR) to one per 1000 live births.
Reducing malnutrition among children of age group 03 to half its present level.
Raising the sex ratio for age group 06 to 935 by 201112 and 950 by 201617.
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Providing clean drinking water for all by 2009 and ensuring no slip-backs.
An analysis of 11th five year plan depicts that although there is a significant progress made
in the area of MMR, IMR and TFR, however, the improvement in child sex ratio is not good
enough. MMR which calculates the number of deaths caused due to maternity reduced by
5.8%, IMR which calculate the number of deaths of infant per thousand live births fell by
5%. Similarly, TFR which calculates the number of children born to a woman during her
entire reproductive period fell by 2.8%. However, the same cannot be said in the case of
child sex ratio. Most of the states except a few showed a decline in child sex ratio.
Looking at the current 11th five year plan the Planning Commission of India has increased
the expenditure on healthcare by three folds in the 12th five year plan. The total allocation of
funds stands at USD 55 billion under the plan, as a result the share of healthcare allocation to
total plan allocation increased to 2.5% of the GDP as against 1% during the current plan. The
12th five year plan will look for a greater public-private partnership in the sector and will
focus on providing a sound regulatory environment, promote research and development
initiatives, improve infrastructural facility and provision of a universal healthcare.
17
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engagement -- all with mixed results. It's truly radical change, an incredibly disruptive
challenge, but it is also a phenomenal opportunity.
In the midst of all this turmoil, we see innovative healthcare organizations really gaining
traction. The organizations taking control are doing so by focusing on the customer
experience and creating unique, customized, member-centric initiatives that deliver efficient
and highly automated interactions to make the product explanation and management, sales,
enrolment, and on-boarding of the member easy, convenient, and seamless. These types of
integrated programs, with the correct application of technology, are catching the attention of
member populations and driving the kind of customer loyalty previously reserved for
consumer brands. This kind of stickiness can only be good for reducing costs and creating the
kind of collaborative healthcare that can drive up the quality of health while driving down
costs.
Customer service and care management
To me, care management is the cornerstone of healthcare transformation. It is the intersection
of clinical care and customer care, and a properly designed and managed care management
program simultaneously reduces clinical and administrative costs, improves health outcomes,
and creates loyal members. How awesome is that? To that point, it's exciting to see that many
leading healthcare organizations are recognizing that care management is, indeed, a real
sweet spot for the true "value-added" aspects of engaging with their members. Fully
integrated disease, case, utilization, and wellness programs on a unified platform that is also
connected to the customer service system offer a truly seamless and meaningful experience
for members.
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Care managers engaging members (and providers) are the supreme ambassadors of "MY"
health plan. Every interaction they have is a "moment of truth" that creates a lasting
impression of how well the health plan is treating them. Care teams help members with a
wide variety of needs to manage their care plans, select services and providers, figure the
cost implications of different choices, and even deal with appointments and prescription refill
reminders. They are often the central point for optimizing the collaboration among the plan,
the members, and the providers. Training care managers in customer service, not just clinical
service, and fusing the two together on a deployable platform, offers incredible opportunities
for innovation, happy members, and great outcomes.
Compliance and operational excellence
The quest for operational excellence has long been a focus for healthcare organizations
seeking to maximize productivity while simultaneously reducing costs. With the new
Medical Loss Ratio rules, this has become an even more urgent initiative. It is really
interesting how "compliance" has become such a dominating force as well, and is now a key
metric in almost every department's operational excellence report card.
Healthcare reform has created new legislation and new transparency where compliance
performance can quickly translate into everything from jaw-dropping penalties (bad) to
demonstrating great quality scores (very positive). These two examples can have significant
impacts on the top and bottom lines. For example, the halo effect of great quality scores
(especially in the B2C model) often results in better member retention and even revenue
premiums, whereas costly penalties are well, costly.
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21
No of Beds
Area(acre)
Investment(US$ Million)
1,600
93
293
600-800
293
800
52
122-195
700
33
243
2,000
100
N.A.
1,000
46
245
50,000
800
487
5,000
100
488
Gurgaon
Hyderabad
Group)
Bangalore
Other Health City Plans in the Pipeline
MIOT hospitals, Chennai have plans to set up a multispecialty medical city
Reliance ADAG has expressed interest in building a 60 acre health city in Kolkata
CMCH, Ludhiana has initiated a US$ 12.2 million Medi-City project in Ludhiana
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Questionnaire
This is the questionnaire that deals with health care and your involvement in health care.
Please take a few minutes to express your opinions about the availability and quality of
health care in your community. Your answers are important for the success of this study.
Name:
30 and above
2. Sex: M / F
3. How many hospitals/Clinics are there in area of 2 kms?
3 and less
3-6
6 and more
4. Is there a difference in performance between the available hospitals in this area and other
areas?
Yes
No
5. Is there a wide difference in the cost of the different hospitals in this area than other
areas?
Yes
No
6. Do you generally receive care from the same hospital?
Yes
No
7. How satisfied are you with the skill and competency of the staff?
Very dissatisfied
Somewhat dissatisfied
Neutral
Very satisfied
Somewhat satisfied
8. Does the hospital have equipment for modern diagnosis and treatment?
Yes
No
9. Does the hospital have modern operating room facilities?
Yes
No
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10. How satisfied are you with Friendliness and courtesy of the hospital staff?
Very dissatisfied
Somewhat dissatisfied
Neutral
Somewhat satisfied
Very satisfied
11. How satisfied are you with the Cost associated to hospitals?
Very dissatisfied
Somewhat dissatisfied
Neutral
Very satisfied
Somewhat satisfied
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BIBLIOGRAPHY
Books
Healthcare Informatics and Analytics: Emerging Issues and Trends - Madjid Tavana
The Future of Healthcare: Global Trends Worth Watching - Andrew N. Garman PsyD
15 Surprising Trends Changing Healthcare - Rohit Bhargava
Webilography
http://www.kpmg.com/in/en/industry/pages/healthcare.aspx
http://www.deloitte.com/assets/DcomIndia/Local%20Assets/Documents/Thoughtware/AI
MAJune2013.pdf
http://www.kpmg.com/IN/en/IssuesAndInsights/ThoughtLeadership/Emrging_trends_in_
healthcare.pdf
https://www.pwc.com/en_GX/gx/healthcare/pdf/emerging-market-report-hc-in-india.pdf
https://www.imf.org/external/pubs/ft/books/2012/health/healthcare.pdf