Services

Health insurance:  Like other forms of insurance is a form of collectivism by means of which people collectively pool their risk, in this case the risk of incurring medical expenses. It is sometimes used more broadly to include insurance covering disability or long-term nursing or custodial care needs. It may be provided through a government-sponsored social insurance program, or from private insurance companies. It may be purchased on a group basis (e.g., by a firm to cover its employees) or purchased by individual consumers. In each case, the covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses. Similar benefits paying for medical expenses may also be provided through social welfare programs funded by the government. By estimating the overall risk of healthcare expenses, a routine finance structure (such as a monthly premium or annual tax) can be developed, ensuring that money is available to pay for the healthcare benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity

Advisory Services :

Whether you want to develop a state-of-the-art cardiac center, a district general hospital or a maternal and infant care program, you need advisory all throughout your project. “My colleagues at UPMC, as well as myself, have been overwhelmed by the performance of the Our Healthcare team in terms of identifying opportunities, researching the pros and cons of specific initiatives, etc… Frankly, we could not purchase on the open market this level of expertise and commitment.”

Financing Solutions

Customized financing solutions leveraging __ Healthcare’s global reach to fund your projects. Healthcare Capital Markets Corporate is Healthcare's dedicated customer finance organization working hand in hand with Healthcare Hospital & Healthcare Solutions. "Financing solutions available from the Hospital & Healthcare Solutions team offered Voxel an investment line which enabled dynamic development of diagnostic centers in Poland. Voxel values good contacts with the Hospital & Healthcare Solutions team, efficiency and rapidity of their services, but above all - flexibility in solutions adapted to specific projects."  Healthcare provides transformational medical technologies and services that are shaping a new age of patient care. Our expertise in medical imaging and information technologies, medical diagnostics, patient monitoring systems, performance improvement, drug discovery, and biopharmaceutical manufacturing technologies is helping clinicians around the world re-imagine new ways to predict, diagnose, inform, treat and monitor disease, so patients can live their lives to the fullest.  Healthcare's broad range of products and services enable healthcare providers to better diagnose and treat cancer, heart disease, neurological diseases and other conditions earlier. Our vision for the future is to enable a new "early health" model of care focused on earlier diagnosis, pre-symptomatic disease detection and disease prevention.

Sector structure/Market size

The healthcare industry in the country, which comprises hospital and allied sectors, is projected to grow 23 per cent per annum to touch US$ 77 billion by 2012 from the current estimated size of US$ 35 billion, according to a Yes Bank and ASSOCHAM report. The sector has registered a growth of 9.3 per cent between 2000-2009, comparable to the sectoral growth rate of other emerging economies such as China, Brazil and Mexico. According to the report, the growth in the sector would be driven by healthcare facilities, both private and public sector, medical diagnostic and pathlabs and the medical insurance sector. Healthcare facilities, inclusive of public and private hospitals, the core sector, around which the healthcare sector is centered, would continue to contribute over 70 per cent of the total sector and touch a figure of US$ 54.7 billion by 2012. Adds a FICCI-Ernst and Young report, India needs an investment of US$ 14.4 billion in the healthcare sector by 2025, to increase its bed density to at least two per thousand population. According to a latest report by McKinsey, driven by strong local demand, Indian healthcare market is expected to continue growing close to previously projected rates of 10 to 12 per cent. With average household consumption expected to increase by more than seven per cent per annum, the annual healthcare expenditure is projected to grow at 10 per cent and also the number of insured is likely to jump from 100 million to 220 million.

Health Insurance

Currently only 10 per cent of the Indian population has health insurance, which means that there is tremendous scope for growth in this area. According to the Yes bank and Assocham report, the medical insurance sector would account for US$3 billion in the next three years, up from the estimated current size of over US$1 billion. In 2008-09, health insurance has emerged as one of the fastest growing segments in the non-life insurance industry with 30 per cent growth. Health insurance premium collections touched US$ 1.45 billion in 2008-09 compared with US$ 1.12 billion in the previous year, the Insurance Regulatory and Development Authority said in its annual report for 2008-09.

Investments in Healthcare

The sector has been attracting huge investments from domestic players as well as financial investors and private equity (PE) firms. Funds such as ICICI Ventures, IFC, Ashmore and Apax Partners invested about US$ 450 million in the first six months of 2008-09 compared with US$ 125 million in the same period a year ago, according to an analysis carried out by Feedback Ventures. Feedback Ventures expects PE funds to invest at least US$ 1 billion in the healthcare sector in the next five years. According to a Venture Intelligence study, 12 per cent of the US$ 77 million venture capital investments in the July-September 2009 quarter were in the healthcare sector. As part of its ‘Healthymagination’ initiative, GE will spend US$ 3 billion over the next six years on research and development, provide US$ 2 billion of financing over the next six years to drive healthcare information technology and health in rural and underserved areas, and invest US$ 1 billion in partnerships, content and services. The government, along with participation from the private sector, is planning to invest US$ 1 billion to US$ 2 billion in an effort to make India one of the top five global pharmaceutical innovation hubs by 2020. The Ajay Piramal Group-owned private equity (PE) firm, India Venture Advisors, will launch its second US$ 150 million healthcare fund next year. Leading international clinic chain Asklepios International is gearing up for a foray into the Indian healthcare market. As part of the 2.3 billion euro group’s strategy to enter the sub-continent, Asklepios is mulling the launch of a US$ 100 to US$ 200 million fund. Gulf-based healthcare group Dr Moopen is investing over US$ 200 million for setting up hospitals and eye-care centres across India. Healthcare major, Fortis Hospitals plans to invest US$ 55 million, to expand its facilities pan-India.

Indian Healthcare Industry

The total value of Indian healthcare industry is US$ 35 billion, and expected to grow US$ 75 billion by 2012, as reported by Techno park Advisors. By 2010, India will need about 30,000 hospital managers. According to a CII report on employment generation, while the direct employment in the healthcare sector was 4 million in 2001, it is expected to grow and provide direct and indirect employment to 9 million by 2012. There are several specialized MBA institutes that offer courses in Healthcare sector.

Even though the Indian economy has slowed down in 2009, the impact on Healthcare sector is much less in comparison to the other sectors. The healthcare sector at US$ 35 billion offers a great opportunity for those related to this sector.  Healthcare, which is a US$ 35 billion industry in India, is expected to reach over US$ 75 billion by 2012 and US$ 150 billion by 2017, according to Technopak Advisors in their report – ‘India Healthcare Trends 2008’. The great Indian middle class with their increasing buying power are the real impetus to the burgeoning health market. Over 150 million Indians have annual incomes of more than US$ 1,000, and many earn as much as US$ 20,000 a year. Today at least 50 million Indians can afford to buy allopathic medicines-a market only 20 per cent smaller than the UK market. To meet this growing demand, the country needs US$ 50 billion annually for the next 20 years, says a Confederation of Indian Industry (CII) study. India needs to add 3.1 million beds by 2018 to the existing 1.1 million, and requires immediate investments of US$ 82 billion, as per the Technopak Advisors report. The private sector provides 60 per cent of all outpatient care in India and as much as 40 per cent of all in-patient care. It is estimated that nearly 70 per cent of all hospitals and 40 per cent of hospital beds in the country are in the private sector, says PWC. Medical tourism is an important segment of healthcare industry. The attraction of high quality healthcare facilities at competitive costs has been instrumental in a large number of foreign arrivals to access healthcare services in India. Going by the current pace with which this segment has been growing, the CII-McKinsey study estimates that revenues from this segment could touch US$ 2.2 billion by 2012 (from the current figure of US$ 333 million).

Opportunities in Healthcare

CII: January 09, 2004

From a US $ 20.6 billion industry in 2001 to an expected US $ 46.4 billion by 2012, India's healthcare sector is headed for a revolution in the near future. A huge population of a billion people, with increasing expenditure on healthcare, coupled with vast gaps in the Indian healthcare market - low density of doctors, huge shortage of hospital beds, high infant mortality, are presenting enormous opportunities to potential investors.