Presentation on theme: "NDLFinal _CII presentation Funding Opportunities in Health Care Emerging Trends and Road Ahead Mr. Sunil Sachdeva Co-founder, Medanta, The Medicity July."— Presentation transcript:
NDLFinal _CII presentation Funding Opportunities in Health Care Emerging Trends and Road Ahead Mr. Sunil Sachdeva Co-founder, Medanta, The Medicity July 21, 2014, Hotel Taj Gateway, Kolkata
NDLFinal _CII presentation India has $65B Healthcare Market which is expected to grow at 15% p.a; Within Healthcare, Delivery is the biggest segment
NDLFinal _CII presentation Medanta as conceptualized …
NDLFinal _CII presentation … and Medanta today
NDLFinal _CII presentation Availability /Capacity Physical Access Quality Affordability Dimensions of Healthcare access Availability, Affordability, Quality and Physical access are crucial for efficient healthcare delivery Source: IMS health, June 2013
NDLFinal _CII presentation HEALTHCARE FACILITIES CONCENTRATED IN URBAN AREAS Availability and access to quality doctors remains one of the biggest concerns for India AVAILABLE DOCTORS & NURSES ARE ~50% OF REQUIRED “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 “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
NDLFinal _CII presentation Source: PwC report, 2013 Disparities exist even at a regional level
NDLFinal _CII presentation ~26K government-run primary health care centers and 615 district-level hospitals - Poor quality of delivery at these institution,; highly underutilized ~200K privately-owned general physician clinics - No standardization in terms of processes, quality and service levels Patients end up going to large tertiary care hospitals even for basic health care needs - more expensive and not easily accessible Poor quality and inadequate number of PHC’s make Primary Health Care a challenge Shortfall of ~17K PHC’s and ~2.6 M health workers nationwide; 41% of PHCs lack healthcare personnel
NDLFinal _CII presentation CHALLENGE CONSTRAINTS Physical Access to quality healthcare Lack of Primary Health centers Unavailability of doctors in Rural Areas Regional disparities Infrastructure takes time and money Artificial constraints – good doctors don’t want to go to rural areas INNOVATION
NDLFinal _CII presentation Source: PwC report, M HEALTH
NDLFinal _CII presentation M HEALTH Mobile penetration on the rise Developing economies more receptive to change Offers solutions to the core problems – Availability and Physical Access INDIA RECEPTIVE TO ADOPTING MHEALTH CURRENTLY, MOST # OF LIVE PROJECTS IN INDIA Source: PwC report,
NDLFinal _CII presentation 2 2 HEALTH CARE UNITS IN TIER 2 AND TIER 3 CITIES HUGE DEMAND MAKES IT A LUCRATIVE OPPORTUNITY Cost of setting up of infrastructure is low Demand is high as income level of people residing in Tier 2 and Tier 3 cities on a rise Government offering incentives BIG AS WELL NEW HOSPITAL VENTURING INTO SMALL CITIES Big hospitals like Medanta, Fortis, Apollo and Manipal Independent hospital chains like Vaatsalaya, Glocal bed hospitals in tier 2 and tier 3 cities - >$15M raised from VC and PE funds
NDLFinal _CII presentation 3 3 PUBLIC PRIVATE PARTNERSHIP FOR SETTING SUPER SPECIALITY HOSPITALS Alone cannot best solve the problem of Health Care Potential benefits include better quality, more resources – funds, technology, increased access etc Models Operations and management contracts BOT through SPV for private financing DBFO - Design, build, finance and operate – variation of BOT Lease: 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.
NDLFinal _CII presentation Emerging Trends Mobile Van Primary Health Care Units Hospitals in Tier 2 and Tier 3 cities Super Speciality Hospitals THE WAY FORWARD
NDLFinal _CII presentation CHALLENGE OPPORTUNITY INNOVATION FUNDING OPPORTUNITY SO WHERE DOES THE FUNDING OPPORTUNITY LIE?