Indian healthcare sector is burdened with high real estate cost, talent sourcing expenses and high import duties of medical equipments and devices according to Apollo Hospitals Group. This is because of the fact that healthcare in the country has not been granted an infrastructure status and therefore hospitals are forced to put up with the challenge to build hospitals.
India has a huge shortage of trained healthcare professionals and it ranks lower than even Sri Lanka and Egypt, when it comes to the ratio of doctor to patient per 10,000. India has just ~0.65 doctors per 1,000 populations which are much lower than the WHO benchmark of 2.5 physicians per 1,000 /populations. India has 1.3 beds per 1,000/population whereas the WHO guideline is 3.5 beds per 1,000 population.
This situation is further compounded by a growing disease burden and poor penetration of health insurance. Most individuals need to pay out of pocket and this situation often compels them to defer and delay treatment in time. Less than 2 per cent of Indians are covered for healthcare insurance and can afford basic healthcare services, Preetha Reddy, executive vice chairperson, Apollo Hospitals Enterprises told Pharmabiz.
Another major concern is poor infrastructure in the rural areas and the incumbent pressure on the government. This essentially, trickles down on private healthcare providers to invest heavily in infrastructure in rural areas, on their own accord. Technology and innovations are definitely catching up but the growing population, poor infrastructure and lack of healthcare insurance and other incentives are major challenges that the healthcare providers face today, she added.
Indian healthcare sector has grown rapidly and has emerged as one of the largest service sectors constituting 5 per cent of the gross domestic product (GDP) and offering employment to over 4 million people. The scenario in India has progressed with the convergence of technology, skill and enabling policies have helped address accessibility and affordability of healthcare in India .
In term of sectorial growth, healthcare has seen a 15 per cent (CAGR) and is expected to touch US$ 158.2 billion by 2017. A discerning consumer profile, increase in disposable income, ageing population, growing health awareness and a healthy shift towards attitude towards preventative healthcare will continue to boost this growth.
Medical value travellers too are also fuelling this progress as our country receives patients from over 120 countries. The cost of surgery in India is one-tenth of that in the US or Western Europe and more importantly, our large talent pool of highly skilled and trusted clinicians is our greatest edge.
However despite these successes, the number of underserved in India are the size of a continent. A concerted focus, innovative strategies and active collaboration between the Government of India and members of the healthcare ecosystem is now even more critical to address this need gap in India and the growing disease burden in the nation. The need of the hour is to create an integrated healthcare delivery system, one that will make our nation, truly inclusive, said the Apollo vice chairperson.