Mr Sunil Sachdeval

Report
Funding Opportunities in Health Care
Emerging Trends and Road Ahead
Mr. Sunil Sachdeva
Co-founder, Medanta, The Medicity
July 21, 2014, Hotel Taj Gateway, Kolkata
NDL
Final _CII presentation
India has $65B Healthcare Market which is expected to grow at
15% p.a; Within Healthcare, Delivery is the biggest segment
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Final _CII presentation
Medanta as conceptualized …
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… and Medanta today
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Final _CII presentation
Availability, Affordability, Quality and Physical access are
crucial for efficient healthcare delivery
Affordability
Physical
Access
Dimensions
of
Healthcare
access
Quality
Availability
/Capacity
Source: IMS health, June 2013
NDL
Final _CII presentation
Availability and access to quality doctors remains one of the
biggest concerns for India
HEALTHCARE FACILITIES
CONCENTRATED IN URBAN AREAS
“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
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
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Disparities exist even at a regional level
Source: PwC report, 2013
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Poor quality and inadequate number of PHC’s make Primary
Health Care a challenge
• ~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
Shortfall of ~17K
PHC’s and ~2.6 M
health workers
nationwide; 41% of
PHCs lack healthcare
personnel
- more expensive and not easily accessible
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Final _CII presentation
• 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
CHALLENGE
INNOVATION
CONSTRAINTS
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1
M HEALTH
Source: PwC report, 2013
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1
INDIA RECEPTIVE TO ADOPTING
MHEALTH
M HEALTH
CURRENTLY, MOST # OF LIVE
PROJECTS IN INDIA
•Mobile penetration on the
rise
•Developing economies
more receptive to change
•Offers solutions to the core
problems – Availability
and Physical Access
Source: PwC report, 2013
NDL
Final _CII presentation
2
HEALTH CARE UNITS IN TIER 2 AND TIER 3 CITIES
HUGE DEMAND MAKES IT A
LUCRATIVE OPPORTUNITY
BIG AS WELL NEW HOSPITAL
VENTURING INTO SMALL CITIES
•Cost of setting up of
infrastructure is low
•Big hospitals like Medanta,
Fortis, Apollo and Manipal
•Demand is high as income
level of people residing in
Tier 2 and Tier 3 cities on a
rise
•Independent hospital
chains like Vaatsalaya ,
Glocal
•Government offering
incentives
- 50- 100 bed hospitals in tier 2
and tier 3 cities
- >$15M raised from VC and PE
funds
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3
PUBLIC 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.
NDL
Final _CII presentation
THE WAY FORWARD
Mobile
Van
Super
Speciality
Hospitals
Emerging
Trends
Primary
Health
Care Units
Hospitals
in Tier 2
and Tier 3
cities
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Final _CII presentation
SO WHERE DOES THE FUNDING OPPORTUNITY LIE?
CHALLENGE
OPPORTUNITY
INNOVATION
FUNDING OPPORTUNITY
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Final _CII presentation

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