Hospital market in india 2014 - Sample
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Transcript of Hospital market in india 2014 - Sample
Hospital Market in India
March 2014
2 HOSPITAL MARKET IN INDIA 2014.PPT
Executive Summary
Drivers & Challenges
Competitive Landscape
Drivers: Shortage in Number of Hospital Beds Increasing Lifestyle Diseases Surge in Medical Tourism Government Initiatives Propelling
Investment Growing Target Hospitalization Population
Group Growing Health Insurance Market Rising Disposable Income
Challenges: Shortage of Medical Professionals Lack of Investment in IT Infrastructure Shortage of FDI Inflow in Indian
Hospitals
The hospital market in India was valued at INR X1 units in 20-- and is expected to reach INR X7
units by 20-- The sector is divided primarily into public and private hospitals, along with NGO operated
hospitals Constantly rising population results in perennial shortage of hospital beds in India
Specialty Clinics Glocal Healthcare Systems
Hospital Mobile Applications Hospital Information Centre
Luxury Offerings Diversified Business Approach
Key Players
Player A Player B Player C
Player D Player E Player F
Market Overview
Key Trends
3
•Economic Indicators •Indian Healthcare Scenario •Introduction •Market Overview •Drivers & Challenges •IT Adoption •Role of Government •Key Trends •Key Initiatives •Competitive Landscape •Trade Fairs & Events •Recent Transactions •Strategic Insights •Appendix
HOSPITAL MARKET IN INDIA 2014.PPT
4
SAMPLE Economic Indicators (1/3)
14.71
11
12
13
14
15
INR tn
Q4
n4 m4
Q3
o3 n3
m3
Q2
p2 o2 n2
m2
Q1
p1 o1 n1
m1
20-- - -- 20-- - -- 20-- - -- 20-- - --
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
0.83
1.26
0.42
0.85
1.73
0.0
0.5
1.0
1.5
2.0
Jun 2013 - Jul 2013 Oct 2013 - Nov 2013
%
Sep 2013 - Oct 2013 Aug 2013 - Sep 2013 Jul 2013 - Aug 2013
MEDICAL DEVICES MARKET IN INDIA 2014.PPT
5
Healthcare system in India requires a larger public outlay due to huge population base Healthcare Industry Overview
•According to “World Health Statistics 2011 Report, India”,
healthcare comprised 4.2% of India’s GDP in 2008 Public and private expenditure on healthcare as percentage of
GDP was 1.4% and 2.8% respectively
• Favorable demographics, increase in awareness levels
and better medical care are some of the driving factors
behind the healthcare sector in India
•Hospitals form the largest segment of overall healthcare
market, followed by pharmaceuticals, medical devices,
health insurance and diagnostics
•Gradual penetration of health insurance is making health
services more affordable through increased demand for
preventive and curative healthcare services
• Superior quality healthcare, coupled with low treatment
costs in comparison to other countries, is benefiting
Indian medical tourism which has, in turn, enhanced the
prospects of the Indian healthcare market Treatment for major surgeries in India costs approximately 20%
of that in developed countries
Healthcare Sector – Market Size & Growth
0
5
10
15
h6
2017e
INR units
2016e
H%
2018e
h7
h5
2015e
h4
2014e
h3
2013e
h2
2012
h1
Healthcare Market Segmentation: Overview
C% A%
E%
B%
D%
F%
F D
E C
B
A
Note: ‘Others’ include healthcare IT and allied activities in healthcare space
MEDICAL DEVICES MARKET IN INDIA 2014.PPT
6
Hospitals can be classified on grounds of ownership and clinical operation
Classification of Hospitals
Public Hospitals
Run by Central Government, State Government and local bodies
Private Hospitals
Run by Central Government, State Government and local bodies
Ownership Basis
Corporate Hospitals
Public limited companies formed under Companies Act run commercially and are likely
to operate chain of hospitals
Voluntary Hospitals
Functions with public or private funds on a non-commercial basis
Clinical Basis
General Hospitals
Hospitals staffed by at least two medical officers that provide in-patient accommodation
and medical care for more than one category of medical discipline
Specialized Hospitals
Provide medical attention for one discipline and are administratively attached to a general
hospital
Isolation Hospitals
Hospitals dedicated to the care of persons suffering from infectious diseases
Tertiary Hospitals
State and Central government hospitals established in respective state capitals
Teaching Hospitals
A hospital to which a college is attached for medical/dental education
Rural Hospitals
Located in rural areas permanently staffed by at least one physician that provides in-patient
accommodation and medical care for more than one category of medical discipline
HOSPITAL MARKET IN INDIA 2014.PPT
7
Most concentrated healthcare facilities
Presence of mostly unorganized players providing sub-optimal care at
higher cost to patients • Almost 70% of population reside in areas
that have a 15% share of healthcare resources
• Limited healthcare facilities eventually lead to rural urban migration for treatment
Hospitals comprise the most crucial aspect of healthcare sector, constantly developing to provide world class services
•Hospitals are a major component of the Indian healthcare industry generating more than 50% of total healthcare sector’s revenue
•Hospital sector can be classified into two types, namely public and private There are ~a private hospitals and ~b public hospitals across
the country
• Potential growth prospect of Indian healthcare industry is attracting many foreign companies that are willing to invest or establish base in India There is a growing trend to tap the high potential tier II and
tier III cities
A trend of growth in specialty and multi specialty hospitals in the country has also been observed
• Indian healthcare delivery distribution network exhibits a skewed pattern with private sector ruling the roost Indian healthcare scenario is dominated by the private
sector catering to almost 80% of overall patient population
Hospital beds are segmented in 60:40 ratio between private and public hospitals
Market Overview (1/2) Market Size and Growth – Private Hospitals
0
1
2
3
4
5
6
INR units
X%
20--e
X7
20--e
X6
20--e
X5
20--e
X4
20--e
X3
20--e
X2
20--
X1
HOSPITAL MARKET IN INDIA 2014.PPT
Rural
Semi Urban
Urban
Healthcare Delivery Distribution
8 HOSPITAL MARKET IN INDIA 2014.PPT
Drivers & Challenges – Summary
Drivers
Shortage in Number of Hospital Beds
Increasing Lifestyle Diseases
Surge in Medical Tourism
Government Initiatives Propelling Investment
Growing Target Hospitalization Population Group
Growing Health Insurance Market
Rising Disposable Income
Challenges
Healthcare Infrastructure Gaps
Lack of Investment in IT Infrastructure
Shortage of FDI Inflow in Indian Hospitals
9
Slow progression of IT adoption in hospitals with only high end corporate hospitals…
• Emergence of new corporate hospitals is popularizing IT adoption with integrated enterprise resource planning (ERP) and hospital information systems (HIS)
• Indian Health IT market is fragmented with offerings from small to medium players and a few enterprise players
•Huge cost involvement has led to hospitals adopting only hospital management modules and not venturing into clinical aspects of hospital automation
IT Adoption in Indian Healthcare IT Adoption – Market Size & Growth
0
5
10
15
20
25
30
35
40
INR units
A%
a6
20--e
a5
20--e 20--e
a4
20--e
a3
20--e
a2
20--
a1
• Business streamlining and patient administration are the biggest benefits of IT adoption in hospitals
• IT leveraging and sharing data on cloud helps in saving infrastructure and manpower to a great extent
• High growth opportunity of IT services in healthcare sector with majority of hospitals awaiting IT adoption
• Growing number of corporate hospitals and their number of branches
• Corporate entities setting up state-of-the-art hospitals
• Poor IT budget and cost pressures de-motivate large scale IT adoption
• Lack of adequate regulatory controls for automation of Indian hospitals
• Lack of awareness also adversely impacts IT adoption in hospitals
• Unavailability of any full time IT personnel in hospitals results in absence of initiatives towards IT adoption
Strengths of Indian Healthcare IT Weaknesses of Indian Healthcare IT
HOSPITAL MARKET IN INDIA 2014.PPT
10
SAMPLE Role of Government: Summary
Role of
Government
Budgetary Allocation
Financial Incentives Public Private Partnerships
(PPPs)
HOSPITAL MARKET IN INDIA 2014.PPT
11
SAMPLE Key Trends – Summary
Diversified Business Approach
Specialty Clinics
Glocal Healthcare Systems
Hospital Information Centre
Luxury Offerings
Hospital Mobile Applications
Key Trends
HOSPITAL MARKET IN INDIA 2014.PPT
12
SAMPLE Key Initiatives – Summary
Key Initiatives
Health Cities
Telemedicine Mobile Hospitals
HOSPITAL MARKET IN INDIA 2014.PPT
13 MEDICAL DEVICES MARKET IN INDIA 2014.PPT
Key Ratios of 3 Major Companies – Operational Basis (FY 20-----) (1/4)
Competitive Benchmarking (2/5)
0
20
40
60
c3 b3
Player B Player C
a3
%
c2
b2
a2
Player A
c1 b1
a1
Net Margin Operating Margin Gross Margin (%)
• Player A recorded gross margin of a1% higher than both Player B and Player C which recorded gross margins of b1% and c1% respectively
• Player A recorded operating margin of a2%, higher than both Player B and Player C which recorded operating margins of b2% and c2% respectively
• Player A recorded net margin of a3% higher than both Player B and Player C which recorded net margin, of b3% and c3% respectively
Note: Calculation on basis of figures for latest available financial years
14
SAMPLE Public: Domestic Company – Player A (1/4)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address xx
Tel No. xx
Fax No. xx
Website xx
Year of Incorporation xx
Ticker Symbol xx
Stock Exchange xx
Name Designation
Thane
Head Office
Category Products/Services
Healthcare Equipment and Supplies
Manufactures and sells sterile needled sutures such as absorbable , non absorbable sutures, female urinary incontinency set, surgical mesh, disposable skin stapler, cardiovascular vessel knife
MEDICAL DEVICES MARKET IN INDIA 2014.PPT
15
SAMPLE Key Ratios
Financial Summary
• The company earned a net profit of INR 15.74 mn in FY 20--, as compared to net profit of INR 15.09 mn in FY 20--
• The company reported total income of INR 540.87 in FY 20--, registering an increase of 3.06 per cent over FY 20--
• The company earned an operating margin of 7.48 per cent in FY 20--, a decrease of 0.46 percentage points over FY 20--
• The company reported debt to equity ratio of 0.72 in FY 20--, an increase of 10.58 per cent over FY 20--
Financial Summary
Net Profit / Loss Total Income
20.79
0
200
400
600
-20
0
20
40
2010
15.50 476.38
INR mn
2011
502.45
2012
15.09
INR mn
540.87 524.80
2013
15.74
Indicators Value (22/01/2014) Market Capitalization (INR) 167.82
Particulars y-o-y change
(2011-10) 2013 2012 2011 2010
Profitability Ratios Operating Margin -0.46 7.48% 7.94% 9.15% 8.09%
Net Margin 0.02 2.89% 2.87% 4.14% 3.25%
Profit Before Tax Margin -0.03 4.77% 4.80% 6.39% 4.94%
Return on Equity -0.48 9.01% 9.49% 14.45% 12.60%
Return on Capital Employed -2.32 19.00% 21.32% 25.47% 25.19%
Return on Working Capital -3.93 24.87% 28.80% 35.41% 38.05%
Return on Assets -1.20 8.52% 9.71% 10.69% 9.81%
Return on Fixed Assets -0.98 83.26% 84.24% 98.45% 74.55%
Cost Ratios Operating costs (% of Sales) 0.43 92.48% 92.06% 90.85% 91.91%
Administration costs (% of Sales)
0.94 41.69% 40.75% 42.02% 37.63%
Interest costs (% of Sales) 0.43 2.30% 1.87% 1.66% 2.92%
Liquidity Ratios Current Ratio 0.08% 1.62 1.62 1.52 1.42
Cash Ratio 247.52% 0.12 0.03 0.01 0.02
Leverage Ratios Debt to Equity Ratio 10.58% 0.72 0.66 0.70 0.95
Debt to Capital Ratio 6.14% 0.42 0.40 0.41 0.49
Interest Coverage Ratio -23.00% 3.26 4.24 5.51 2.77
Efficiency Ratios Fixed Asset Turnover 4.48% 11.08 10.60 10.76 9.21
Asset Turnover -7.30% 1.13 1.22 1.17 1.21
Current Asset Turnover -8.59% 1.27 1.39 1.32 1.40
Working Capital Turnover -8.71% 3.31 3.62 3.87 4.70
Capital Employed Turnover -9.99% 1.80 2.00 2.06 1.99
Improved Decline
Financial Snapshot
Public: Domestic Company – Player A (2/4)
MEDICAL DEVICES MARKET IN INDIA 2014.PPT
16
Key Business Segments Key Geographic Segments
Business Highlights
Description Details
Overview • Is an ISO 9001:2008 certified company • Introduced Good Manufacturing Practice in production and quality control areas ,including detailed batch
record maintenance, recall system, procedure and production environment control and staff training
Medical Equipment and Supplies
• Product profile includes absorbable sutures ,including natural sutures and synthetic sutures •Offers non absorbable sutures ,including needles for cardiovascular surgery, needle suture combinations
and temporary pacemaker electrode • Provides medical devices such as female urinary incontinency set, surgical mesh, skin stapler, titanium
haemostatic clip for cardiovascular surgery, disposable aortic punch for cardiovascular anastomosis and cardiovascular vessel knife
Recent Activities • It has consolidated its position in cardiovascular sutures segment and expects to carry out further
consolidation during 2013-14
Player A has been operating solely in the medical devices & surgical sutures segment over
the last five years
Player A has been operating solely in India over the last five
years
100%
40%
60%
80%
20%
0%
2013
100.0%
Manufacturing and Selling of Medical Devices
20%
0%
100%
80%
60%
40%
2013
100.0%
India
Public: Domestic Company – Player A (3/4)
MEDICAL DEVICES MARKET IN INDIA 2014.PPT
17
SAMPLE
• X • X
• X • X
T O
W S
Public: Domestic Company – Player A – SWOT Analysis (4/4)
MEDICAL DEVICES MARKET IN INDIA 2014.PPT
18
Private: Domestic Company – Player B (1/5)
Key People
Products and Services
Company Information
Corporate Address xx
Tel No. xx
Fax No. xx
Website xx
Year of Incorporation xx
Name Designation
Category Products/Services
Healthcare Service s It offers treatment for a wide range of diseases through its latest medical services and technologies
Bengaluru Head Office
HOSPITAL MARKET IN INDIA 2014.PPT
Head Office – India
19
Shareholders of the Company as on xx/xx/20xx Ownership Structure
Name No. of Shares held
Total X
0.02%
2011
0.02%
99.98%
2012
99.98%
Directors or relatives of directors
Foreign holdings
Ownership structure corresponds to Date of AGM: xx/xx/20xx and xx/xx/20xx
Private: Domestic Company – Player B (2/5)
HOSPITAL MARKET IN INDIA 2014.PPT
20
SAMPLE Financial Snapshot Key Ratios
Financial Summary
• Company earned a net profit of INR 76.5 mn in FY 2012, as compared to net profit of INR 25.3 mn in FY 2011
• It reported total income of INR 5,908.4 mn in FY 2012, registering an increase of 90.9 per cent from FY 2011
• Earned an operating margin of 97.97 per cent in FY 2012, a decrease of 1.41 percentage points over FY 2011
• The company reported a debt to equity ratio of 0.65 in FY 2012, a decrease of 26.93 per cent over FY 2011
Improved Decline
Net Profit / Loss Total Income
20
0
-20
6,000 80
60
40 4,000
2,000
0
INR mn INR mn
2012
76.5
5,908.4
2011
25.3
3,095.3
Particulars y-o-y change
(2012-11) 2012 2011
Profitability Ratios Operating Margin -1.41 97.97% 99.38%
Net Margin 0.48 1.29% 0.82%
Profit Before Tax Margin -1.41 97.97% 99.38%
Return on Equity 2.79 4.29% 1.50%
Return on Capital Employed 99.89 196.33% 96.43%
Return on Working Capital 7667.34 8072.94% 405.60%
Return on Assets 62.47 131.13% 68.66%
Return on Fixed Assets 119.43 254.43% 135.01%
Cost Ratios Operating costs (% of Sales) 1.41 2.03% 0.62%
Administration costs (% of Sales) 0.00 0.00% 0.00%
Interest costs (% of Sales) 0.00 0.00% 0.00%
Liquidity Ratios Current Ratio -37.78% 1.06 1.71
Cash Ratio -54.93% 0.53 1.18
Leverage Ratios Debt to Equity Ratio -26.93% 0.65 0.89
Debt to Capital Ratio -16.29% 0.39 0.47
Interest Coverage Ratio N.A. N.A. N.A.
Efficiency Ratios Fixed Asset Turnover 91.18% 2.60 1.36
Asset Turnover 93.73% 1.34 0.69
Current Asset Turnover 188.49% 4.88 1.69
Working Capital Turnover 1919.05% 82.40 4.08
Capital Employed Turnover 80.29% 3.31 1.84
HOSPITAL MARKET IN INDIA 2014.PPT
Private: Domestic Company – Player B (3/5)
21
SAMPLE Description News
Overview • It has a network of five tertiary care, nine secondary care and three primary care clinics across Bengaluru, Salem, Mangalore, Vijayawada, Vishakapatnam and Goa
Facilities
• Its services include plastic and cosmetic surgery, accident and emergency critical care, bone marrow transplants, bariatric surgeries, cancer care, dental implantology, eye surgeries and LASIK and several others
• Other services include anaesthesiology, cardiology, dermatology, dental medicine, diabetes and endocrinology, ENT, gastroenterology, general surgery, general medicine, maxillofacial surgery, medical and numerous other specialties
Accreditations • Group’s flagship hospital in Bangalore is NABH accredited and ranks among the Top 10 multispecialty hospitals in India
Business Highlights
HOSPITAL MARKET IN INDIA 2014.PPT
Private: Domestic Company – Player B (4/5)
22
SAMPLE • X
• X
• X • X
T O
W S
Private: Domestic Company – Player B (4/5)
HOSPITAL MARKET IN INDIA 2014.PPT
23
SAMPLE Appendix
Ratio Calculations
Operating Margin (Operating Income/Revenues)*100
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin (Income Before Tax / Revenues *100
Return on Equity (ROE) (Net Income / Shareholders Equity)*100
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100
Return on Working Capital (Net Income / Working Capital) *100
Return on Assets (Net Income / Total Assets)*100
Return on Fixed Assets (Net Income / Fixed Assets) *100
Operating Costs (% of Sales) (Operating Expenses / Sales) *100
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
Ratio Calculations
Current Ratio Current Assets / Current Liabilities
Cash Ratio {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity Total Liabilities / Shareholders Equity
Debt to Capital Ratio {Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Capital Employed Turnover Sales / Shareholders Equity
MEDICAL DEVICES MARKET IN INDIA 2014.PPT
24
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HOSPITAL MARKET IN INDIA 2014.PPT