Business Envirenment Seminar

8/3/2019 Business Envirenment Seminar

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Contentsy Introduction

y Key players

y Landscape in Indiay Government health system

yAdministrative structure and delivery structure

y Financing mechanism

y Contradiction

y Strength, Weakness, Opportunity, Threat

y Summary


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Introductiony

World health care industry M

edical institution...y Plays an important part in the economy of a country.

y Determines the GDP of any country.

y Annually over 150,000 crores or US$34 billion spent,

which is 6% of GDPy The quantity and quality are improved through the

results of science,

y For eg: Focuses on the eradication of illness through

diagnosis and effective treatment.


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yAdvancement through health research, includingbiomedical research and pharmaceutical research.

y They form the basis of evidence-based medicine andevidence-based practice in health care delivery.


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y Expenditure on health care is second major cause ofindebtedness among rural poor

y Invention of latest technological developments, theindustryis catching up with the other leadingindustries of the world.

y This is one of the largest industries catering to the

medical needs of innumerable people around theglobe


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Players1. Dentists and doctors 2. Pharmacies

3. Allied medical , health services 4. Hospitals

5.Protective care and nursing


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Healthcare Landscape in Indiay Life Expectancy and InfantMortality showing

significant improvement

y Life expectancyon parwith less developed regions,however long way to go to meet more developedregions


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:Government Health System

y Three levels of responsibilities-

First-y health is primarily a state responsibilitySecond-y - the central government is responsible for developing and

monitoring national standards and regulations

y Sponsoring various schemes for implementation by stategovernments

y - providing health services in union territoriesThird-y both the centre and the states have a joint responsibilityfor various programmes


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Administrative Structure

1. Central Ministries of Health and Family Welfare

y - Responsible for all health related programmes

y - Regulatory role for private sector2. StateMinistries of Health and Family Welfare

3. District Health Teams headed by Chief

y Medical and Health Officer


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Service Delivery Structurey Sub Health Centres- Staffed by a trained female health

worker and/or a male health worker for

y Population:5000 in plains

y 3000 in hilly & tribal areas

y Primary Health Centres-

staffed by a medical officer and other paramedical stafffor a

y Population:50000 in plains

y 30000 in hilly ,tribal & backward areas

y PHC supervises 6-8subcentres


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y Community health centres-with 30-50 beds and basicspecialities covering a population of 80,000 to 120,000.

The CHC acts as a referral centre for four to six

PHCs.y District/General hospitals- at district level withmulti

speciality facilities (City dispensaries)

y Medical colleges, All India institute ofMedical

Sciences and quasi government institutes


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Health Financing Mechanisms..

y Revenue generation by tax(15 %)

y Out of pocket payments or direct payments(80%)

y Private insurance(1%)y Social insurance (4%)

y External Aid supported schemes


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Contradictions

yIndia has the largest numbers ofmedical colleges in the world

yIt produces the largest numbers of

doctors among developing countriesyIt gets medical Tourists from

developed countriesy

This country is fourth largest producerof drugs by volume in the world


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STRENGTHy Population of over a billion is a largely untapped

market.

yIn fact the penetration of modern medicine is lessthan 30% in India.

The growth of middle class in the country has resultedin fast changing lifestyles in urban and to some extent

rural centers.y This opens a huge market for lifestyle drugs, which has

a very low contribution in the Indian markets.


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y Indian manufacturers are one of the lowest costproducers of drugs in the world. With a scalable labor

force,y Indian pharmaceutical industry posses excellent

chemistry and process reengineering skills.

y This adds to the competitive advantage of the Indian

companies. The strength in chemistry skill help Indiancompanies to develop processes, which are costeffective.


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weaknessy Indian pharma sector has been marred by lack of

product patent,

y India accounts for almost 16% of the world populationwhile the total size of industry is just 1% of the globalpharma industry.


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OPPORTUNITIESy migration into a product patent -transform industry

fortunes in the long term.regime will bring with it

new innovative drugsy increase the profitability ofMNC pharma companies

and will force domestic pharma companies to focusmore on R&D.

y

Large number of drugs going off-patent in Europe andin the US between 2005 to 2009 offers a bigopportunity for the Indian companies to capture thismarket


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y Key growth drivers from a long-term perspective.Opening up of health insurance sector and the

ex

pected growth in per capita incomey This leads to the expansion of healthcare industry of

which pharma industry is an integral part.

y Being the lowest cost producer combined with FDA

approved plants, Indian companies can become aglobal outsourcing hub for pharmaceutical products.


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Threatsy concerns over the patent regime regarding its current

structure change in govt-change policies (patent)

y

Threats from other low cost countries like China andIsrael exist.

y short-term threat -Implementation of VAT


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To Summarizey Steady economic growth expected over the medium term

yVast growth potential in healthcare sector

y

In generics and drug manufacturing, Indian companies arecompetitive so collaborate or invest in them

y Infrastructure offers best opportunity, given globalsuperior experience and 100% FDI allowance in India


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