Presentation on theme: "Emerging Trends and Road Ahead Co-founder, Medanta, The Medicity"— Presentation transcript:
1 Emerging Trends and Road Ahead Co-founder, Medanta, The Medicity Funding Opportunities in Health CareEmerging Trends and Road AheadMr. Sunil SachdevaCo-founder, Medanta, The MedicityJuly 21, 2014, Hotel Taj Gateway, Kolkata
2 India has $65B Healthcare Market which is expected to grow at 15% p India has $65B Healthcare Market which is expected to grow at 15% p.a; Within Healthcare, Delivery is the biggest segment
5 Availability /Capacity 8_84 7_84 6_84Availability, Affordability, Quality and Physical access are crucial for efficient healthcare deliveryAffordabilityQualityDimensions ofHealthcare accessPhysical AccessPhysical ReachThis component defines physical accessibility of a requisite healthcare facility, i.e.availability of a healthcare facility having an outpatient department (OPD) for commonailments, and an inpatient department (IPD) for hospitalization. These facilities may eitherbe public or private in nature. Physical reach is defined as the ability to enter a healthcarefacility within 5 kilometres (5km) from the place of residence or work.Availability/CapacityThis component defines availability of the requisite healthcare resources to providepatient treatment, i.e. doctors, nurses, in-patient beds, diagnostics, consumables, etc. Theavailability is governed by minimum specifications defined by the Government of Indiafor public healthcare facilities, and international organizations such as WHO.Quality/FunctionalityThis component defines the quality of the healthcare resources available at the point ofpatient treatment.AffordabilityThis component defines the ability of a patient to afford complete treatment for theillness or diseaseSurvey by IMS healthfor selecting a private healthcare facility, while quality of treatment was the second top reason(56%)Availability /CapacitySource: IMS health, June 2013
6 Availability and access to quality doctors remains one of the biggest concerns for India Healthcare Facilities concentrated in uRban areasAvailable doctors & nurses are ~50% of required“If shortage of doctors is one problem, their unwillingness to work in the rural hinterland is another, creating artificial scarcity in the area and high concentration in another”Union Health Ministry“It is alarming to note that doctor patient ratio in rural India is 1:20,000 as against the urban ratio of 1:2000 which itself is far below the WHO requirement of 1:250 in rural India ”ONICRA, 2013
7 Disparities exist even at a regional level Source: PwC report, 2013
8 2_85Poor quality and inadequate number of PHC’s make Primary Health Care a challenge~26K government-run primary health care centers and 615 district-level hospitalsPoor quality of delivery at these institution,; highly underutilized~200K privately-owned general physician clinicsNo standardization in terms of processes, quality and service levelsPatients end up going to large tertiary care hospitals even for basic health care needsmore expensive and not easily accessibleShortfall of ~17K PHC’s and ~2.6 M health workers nationwide; 41% of PHCs lack healthcare personnelIf you are having a stomach ache – where will you go
9 INNOVATION CONSTRAINTS Physical Access to quality healthcare Lack of Primary Health centersUnavailability of doctors in Rural AreasRegional disparitiesCHALLENGEInfrastructure takes time and moneyArtificial constraints – good doctors don’t want to go to rural areasCONSTRAINTSINNOVATION
11 M HEALTH 1 India receptive to adopting Mhealth 7_85M HEALTH1India receptive to adopting MhealthCurrently, MOST # of live projects in indiaMobile penetration on the riseDeveloping economies more receptive to changeOffers solutions to the core problems – Availability and Physical AccessSource: PwC report, 2013
12 HEALTH CARE UNITS IN TIER 2 AND TIER 3 CITIES 2 8_85 10_85HEALTH CARE UNITS IN TIER 2 AND TIER 3 CITIES2Huge demand makes it a lucrative opportunityBig as well new hospital venturing into small citiesCost of setting up of infrastructure is lowDemand is high as income level of people residing in Tier 2 and Tier 3 cities on a riseGovernment offering incentivesBig hospitals like Medanta, Fortis, Apollo and ManipalIndependent hospital chains like Vaatsalaya , Glocalbed hospitals in tier 2 and tier 3 cities>$15M raised from VC and PE funds
13 PUBLIC PRIVATE PARTNERSHIP FOR SETTING SUPER SPECIALITY HOSPITALS 7_84PUBLIC PRIVATE PARTNERSHIP FOR SETTING SUPER SPECIALITY HOSPITALS3Alone cannot best solve the problem of Health CarePotential benefits include better quality , more resources – funds, technology, increased access etcModelsOperations and management contractsBOT through SPV for private financingDBFO - Design, build, finance and operate – variation of BOTLease: Private sector provides own health care and risks.Concessions: Government regulates price and quality. Private sector invests, pays for concession rights.Government contributes to reduce commercial risk.Joint ownership. Sharing revenues, expenses and assets. Technological expertise through private sector.
14 THE WAY FORWARD Hospitals in Tier 2 and Tier 3 cities Emerging Trends Mobile VanPrimary Health Care UnitsHospitals in Tier 2 and Tier 3 citiesSuper Speciality Hospitals
15 SO WHERE DOES THE FUNDING OPPORTUNITY LIE? CHALLENGEOPPORTUNITYINNOVATIONFUNDING OPPORTUNITY
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