The Indian healthcare industry is on a robust growth track. The industry has enormous scope for investing in new specialty/multi-specialty hospitals (or) expansion of existing facilities. The scope is largely dependent on factors like advanced equipment, technology upgradation, PPP models etc. These factors play an important role which enables the healthcare players to serve the increasing population for access to qualitative diagnosis and treatment at an affordable price models. There are neighbouring countries like Europe, Middle East etc. who are considering India as an option for treatment because of the quality and cost

Indian medical technology industry is expected to reach US$ 14 billion by 2020 from US$ 2.7 billion in 2008 according to a report by PwC .

Some of the key developments in the healthcare industry is around health insurance market (in India) which is one of the fastest growing and the  second  largest non-life insurance segment in the country, according to RNCOS report. The health insurance premium is expected to grow at a CAGR of over 25 per cent for the period spanning from 2009-10 to 2013-2014.

Majority of the healthcare players are now expanding to tier-II and tier-III cities, also to semi urban areas due to significant demand for high-quality specialty healthcare services and quick treatment modalities.

The preventive healthcare market is growing at  25 per cent rate.

The graphic in this article shows the current state of average annual growth rate forecast in healthcare infrastructure expenditure 2009-2013

CII report indicates that eight per cent of households are pushed below the poverty line each year due to unexpected health expenditure. The latest developments in this industry indicate a lot about lifestyle diseases and its growth in India. By 2026, India is expected to spend 13293.9.crore for non – communicable diseases as compared to 8424.3 crore for communicable diseases.

Non – communicable diseases are responsible for two-thirds of the total morbidity burden and about 53 per cent of total deaths. It is expected to rise to 59 per cent by 2015 in India. (WHO Report).   The share of NCDs in out of pocket health expenses incurred by households increased over time, from 31.6 per cent in 1995-96 to 47.3 per cent in 2004. The disease burden is affecting the Indian economy growth because of reduced productivity, early retirement and expenditure in healthcare.

Surveillance of NCDs and their risk factors should also become an integral function of health systems. Evidence based clinical practice and appropriate use of technologies should be promoted at all levels of healthcare.

Experts believe that the burden of lifestyle diseases can be reduced to half through investing in preventive healthcare. Preventive healthcare consists of measures taken to prevent diseases rather than curing them or treating their symptoms. In India healthcare sector is gradually moving from curative to preventive healthcare. With rising awareness levels both in the urban and rural areas and increasing disposable incomes, the coming decade is expected to witness increased demand for preventive healthcare.

Therefore the new government focus should be on preventive healthcare. The government should implement a healthcare system towards prevention, screening, early intervention and new treatment modalities with the aim to reduce the burden of such chronic disease.

Measures which can help government to build a strong healthcare policies for a healthy future and stronger economy:

• In the current scenario health insurance and preventive health check-up are clubbed together under one category for tax benefit. This can be separated to create two different categories. This arrangement can help people get a precise and clear incentive to go for a preventive health check-up
• The tax redemption bar can be increased from Rs.5000 to Rs.15, 000 since the cover is meant not just for one individual but for the family members as well. The motive is to control healthcare expenses to meet the basic needs of the family
• Corporates who have a preventive health check - up policy or invest in preventive health check - up for its employees should be given extra benefits
• Need to create personal health records and encourage screening of diseases amongst the population
• Encourage health institutions to bring new equipment models that are more effective as well as affordable. Reduce the import duty on healthcare equipment
• India should increase the manufacturing of local goods and medical equipment
• Need a strong regulatory forum to bring improvement in overall healthcare industry
• Form a separate department with experts to address  concerns about health of the country
• Make it mandatory  for schools & colleges for initiating health programmes for early screening, promoting  positive health

The Assocham report on preventive healthcare and its impact on corporate sector states that “One rupee spent on prevention saves Rs. I33 in absenteeism costs and Rs. 6.62 in healthcare costs.” This report further states that preventive health checkups can have a significant effect in minimizing absenteeism and can have relative economic impact in corporate organizations. Corporates should encourage their employees to undertake preventive health checkup. Employees undertaking regular health checkups have 45 per cent lesser absenteeism and their medical reimbursements are 20 per cent less.

To sum it up, the industry is in a good shape. We will always find challenges, but it is necessary to evaluate how we grow and  maintain the growth. With the new government in place, it’s time for the industry policy makers to think how to scale up. Do we need to enter public private partnership models or do we need to simply implement the right policies to see a splurge!