Hospital and Healthcare Industry
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 role of Indian government in providing medical facilities is very important as every individual can’t afford the huge bills of private hospitals. Government has been helping below poverty line people by providing free medical facilities time & again. In India an individual can chose amongst various alternatives of medication like Allopathic, homeopathy, Ayurvedic etc. Allopathic currently leads all other forms of medication. India provides various world class multi specialty hospitals and is attracting both patients & specialists from the world over. Here in our project, we are learning the business model of any of the key players in the hospital industry. We are trying to analyze the subject by doing an in-depth industry analysis, which includes industry lucrativeness, overall growth and profitability of the industry. A comparative analysis of Indian hospitals industry Vis-a- via global hospital industry has been done to gain a perspective on various options an Indian consumer has with respect to their foreign counter part. We have also performed following analysis pertaining to the HOSPITAL INDUSTRY: 1. POTER’s five force
2. PEST Analysis.
In order to analyze & comprehend any business model specific to a player we also need to do in depth study of the company as a whole. We have decided to analyze the business model of APOLLO HOSPITALS, other business areas APOLLO is into, revenue growth of APOLLO, its competitors, path breaking developments at APOLLO & expertise of APOLLO. We also need to understand and analyze the weaknesses, strengths, opportunities & threats to APOLLO HOSPITALS. Along with this we have to study the strategies applied by APOLLO hospitals since its inception & changes made by them as & when required.
Globally, India contributes 20 per cent to the global disease burden, ranks 171 in a list of 175 countries on public health spending, and is popularly known as the cardiac and the diabetes capital of the world. This shows that there is a high need of medical facilities in India. The healthcare industry has matured into a big sector in India with a contribution to the GDP of 5.2% making it the third largest sector. The sector is also least affected by recession due to constant demand. Currently the in India the bed ratio is 1 per 1000 and lags behind the WHO norms of 1 per 300, this shows that there is huge potential in the industry of about 75000 to 1000000 more beds. With a CAGR (compound annual growth rate) of 15-17% in this sector the industry is lucrative with 1, 80,000 Crore of projections by year 2012.It is a social sector with state and central government providing subsidies and grants. It includes hospitals, health insurance, medical software, health equipments and pharmacy. The hospital industry accounts for half the healthcare sector’s revenues and is estimated to be worth USD $22 billion and expected to grow to USD $32 billion by 2011. 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....
Bibliography: * India Hospital Report May 2010 by NorthBridge Capital
* Healthcare In India- emerging Market Report
* Hospital Industry Insight by Cygnus Business Consulting & Research Pvt. Ltd.
* Health Insurance In India. (n.d.). Retrieved from http://www.healthinsuranceindia.blogspot.com/.
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