Hospital & Health Care Industry in India

2605 Words Sep 8th, 2011 11 Pages
Hospital and Healthcare Industry

Abstract
Health care may be defined as “The prevention, treatment, management of illness and the preservation of mental and physical well-being through the services offered by the medical and allied health professionals.”From the ages of self medication, Indian health care industry has come of ages during the recent times. Indian health care industry has emerged as one of the most challenging as well as largest service sector industry in the country. With the 2nd largest population in the world & 70% of it living in villages, it has become a challenge to provide medical services to one and all. On the other side it also gives both public as well as private players a huge market to play. The
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The government with the help of private players is going to make investments of USD 1-2 billion and make this industry as one of the top five in terms of healthcare worldwide.
India Health Infrastructure

Number of Hospitals in different zones in India

Share of private expenditure as a percentage of total expenditure on healthcare has grown to nearly 80 per cent over the last decade and it is further expected to increase more than $40 billion by 2012. With the potential to return 30-40 percent margins and decreasing public sector investments, the hospital segment will be dominated by the private hospitals. It is estimated that nearly 75 per cent of all hospitals and 40 per cent of hospital beds in the country are in the private sector. 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. Private vs. Government Spending in India

THREAT OF NEW ENTRANT
ANALYSIS
* Is quite high * As the profit in this industry is high new competitors are attracted towards the industry. * Also many specialized hospitals (comparative low investment) are opened which are curbing the patient from multi specialty hospitals.
Porter’s Five Forces

THREAT OF SUBSTITUTE

BUYER POWER SUPPLIER POWER * Threat of substitute is low to moderate. * As in case of non emergency cases people prefer
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