NDLFinal _CII presentation Funding Opportunities in Health Care Emerging Trends and Road Ahead Mr....

NDL Final _CII presentation

Funding Opportunities in Health CareEmerging Trends and Road Ahead

Mr. Sunil Sachdeva

Co-founder, Medanta, The Medicity

July 21, 2014, Hotel Taj Gateway, Kolkata


0

20

40

60

80

100%

Medical Services

Delivery

DiagnosticsRadiologyLaboratary

45

Pharma

Pharma

14

Me

dic

al D

evic

es

4

Oth

ers

3

Indian Healthcare Market

Total =$65 B

0

100

200

$300B

2011

65

2016

130

2021

Indian Healthcare Market

260 15%

(11-21)CAGR

India has $65B Healthcare Market which is expected to grow at 15% p.a; Within Healthcare, Delivery is the biggest segment


Medanta as conceptualized …


… and Medanta today


Availability /Capacity

Physical Access

Quality

Affordability

Dimensions of

Healthcare access

Availability, Affordability, Quality and Physical access are crucial for efficient healthcare delivery

Source: IMS health, June 2013


0

20

40

60

80

100%

Rural

Urban

1.2B

Hospitals

35K

Doctors

680K 940K

Percent of total

Population Hospital beds

HEALTHCARE FACILITIES CONCENTRATED IN URBAN AREAS

Availability and access to quality doctors remains one of the biggest concerns for India

AVAILABLE DOCTORS & NURSES ARE ~50% OF REQUIRED

“It is alarming to note that doctor patient ratio in rural India is 1:20,000 as against the urban ratio of 1:2000 which itself is far below the WHO requirement of 1:250 in rural India ”

ONICRA, 2013

0

500

1,000

1,500

Demand for qualified doctors ('000)

2007

1,120

2012

Supply

1,223

Demand supply gap

“If shortage of doctors is one problem, their unwillingness to work in the rural hinterland is another, creating artificial scarcity in the area and high concentration in another”

Union Health Ministry


Source: PwC report, 2013

Disparities exist even at a regional level


• ~26K government-run primary health care centers and 615 district-level hospitals- Poor quality of delivery at these

institution,; highly underutilized

• ~200K privately-owned general physician clinics- No standardization in terms of processes,

quality and service levels

• Patients end up going to large tertiary care hospitals even for basic health care needs- more expensive and not easily accessible

Poor quality and inadequate number of PHC’s make Primary Health Care a challenge

Shortfall of ~17K PHC’s and ~2.6 M health workers

nationwide; 41% of PHCs lack healthcare

personnel


CHALLENGE

CONSTRAINTS

• Physical Access to quality healthcare

• Lack of Primary Health centers

• Unavailability of doctors in Rural Areas

• Regional disparities

• Infrastructure takes time and money

• Artificial constraints – good doctors don’t want to go to rural areas

INNOVATION



1 M HEALTH


M HEALTH

•Mobile penetration on the rise

•Developing economies more receptive to change

•Offers solutions to the core problems – Availability and Physical Access

INDIA RECEPTIVE TO ADOPTING MHEALTH

CURRENTLY, MOST # OF LIVE PROJECTS IN INDIA


1


2 HEALTH CARE UNITS IN TIER 2 AND TIER 3 CITIES

HUGE DEMAND MAKES IT A LUCRATIVE OPPORTUNITY

•Cost of setting up of infrastructure is low

•Demand is high as income level of people residing in Tier 2 and Tier 3 cities on a rise

•Government offering incentives

BIG AS WELL NEW HOSPITAL VENTURING INTO SMALL CITIES

•Big hospitals like Medanta, Fortis, Apollo and Manipal

•Independent hospital chains like Vaatsalaya , Glocal- 50- 100 bed hospitals in tier 2

and tier 3 cities- >$15M raised from VC and PE

funds


3PUBLIC PRIVATE PARTNERSHIP FOR SETTING

SUPER SPECIALITY HOSPITALS• Alone cannot best solve the problem of Health Care

• Potential benefits include better quality , more resources – funds, technology, increased access etc

• Models

•Operations and management contracts

•BOT through SPV for private financing

•DBFO - Design, build, finance and operate – variation of BOT

•Lease: Private sector provides own health care and risks.

•Concessions: Government regulates price and quality. Private sector invests, pays for concession rights.

•Government contributes to reduce commercial risk.

•Joint ownership. Sharing revenues, expenses and assets. Technological expertise through private sector.


Emerging Trends

Mobile Van

Primary Health

Care Units

Hospitals in Tier 2

and Tier 3 cities

Super Speciality Hospitals

THE WAY FORWARD


CHALLENGE

OPPORTUNITY

INNOVATION FUNDING OPPORTUNITY

0

500

1,000

1,500

Demand for qualified doctors ('000)

2007

1,120

2012

Supply

1,223

Demand supply gap

SO WHERE DOES THE FUNDING OPPORTUNITY LIE?

NDLFinal _CII presentation Funding Opportunities in Health Care Emerging Trends and Road Ahead Mr....

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