Indian
Hospitals, Health care and Medical Services
India's hospitals
and health care sector is in the middle of a high growth phase both
in terms of volume and sophistication. The central and the state governments
are major players in this sector running hospitals, nursing homes, medical,
Nursing and para medical colleges, medical insurance etc. and in many
rural and semi urban areas these are the only access to health care
the locals have. The private sector has a large presence in urban areas
running world class hospitals and other medical care facilities. The
ministry of health and family welfare is responsible for formulation
of national health policies and programmes and has mandated to provide
minimum health care facilities to all by the year 2005 backed a large
investment budget.
One of the principle
drivers of India's hospitals sector is its gradual corporatisation during
the last decade. The Chennai based Apollo Hospitals was a pioneer in
this having started the country's first corporate hospital service in
the early 80's. As hospitals, nursing homes and health care centres
become more and more capital intensive with huge investments required
in real estate and medical equipments corporatization with access to
equity markets and public funding is the only route to bankroll such
projects.
The government
too has enabled this process by recognising hospitals as an industry
thereby making it possible for banks and Investment Institutions to
fund hospital projects. Foreign Direct Investments (FDI) has been allowed
in this sector with automatic approval upto 51% by way of foreign investment
in equity. Together these two act as powerful catalysts for the growth
of health services.
With sweeping reforms
planned for insurance sector health insurance currently a government
monopoly is likely to be opened up for private sector with FDI allowed
to a substantial extent. This will be a great impeller and this is expected
to happen within the next 12-18 months.
