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Developments in Healthcare Industry & The Emerging Domains for Job Opportunities
Indian Healthcare Sector
The government of India has embarked upon a journey to strengthen the healthcare system of the country. The government has introduced reforms that have made it possible for all individuals to gain an access to some of the necessary health care services. The private sector has undergone tremendous growth as with the introduction of reforms in health care.
In the coming decade, healthcare services in India hold unique opportunities making it a challenging journey. Under the National Health Assurance Mission, the government would provide all Indian citizens free drugs, insurance cover and diagnostic treatments for serious ailments.
The outlook for the healthcare industry seems bright and positive, with the government increasing its annual healthcare expenditure on; primary health care, secondary health care, medical equipment, health insurance and diagnostic treatments. Also the increase in per capita income, will allow easy access to healthcare services, which would implicitly give boost to the healthcare sector.
Structure of Indian Healthcare Industry
The Indian healthcare system is broadly, divided into two categories; public and private. Public sector includes, government owned hospitals, nursing homes, and diagnostic centers which provide basic healthcare facilities in rural areas. The private sector has a plethora of healthcare services, which include; secondary, tertiary and the quarternary care institutions, with major agglomeration in metros and tier II cities.
Indian healthcare system boasts of the competitive advantage that it carries within itself owing to the large pool of medical professionals and the education system churning out talented medical graduates every year. Also, the cost effectiveness of healthcare services in India, gives it an edge over the rest, as the costs are approximately one-tenth of that in major developed nations.
Increasing population growth, as well as rise in per capita income, would be the primary drivers of growth for the Indian Healthcare Industry. According to a recent report, the diagnostic segment of Indian healthcare system is projected to grow to US$ 17 Billion by 2021.
Wherein, large investments are aimed at the private sector, which is forecasted to reach US$ 100 Billion by the year 2015 with additional US$ 180 Billion by 2020. The share of private sector is expected to rise up to 81% by the end of the current fiscal year.
Also, there has been a significant increase in the IT spend of the healthcare sector which touched the figures of US$ 1.1 Billion, during the last fiscal year.
Major developments that would fuel the growth of this sector
As per a study released by the Department of Industrial Policy and Promotion (DIPP), the healthcare sector attracted Foreign Direct Investment (FDI) amounting to US$ 2,494.98 million between April 2000 and September 2014.
Let's take a look at some of the major investments in the Indian Healthcare industry:
- Sequoia Capital: Curation Healthcare, the fastest growing entrepreneurial-led healthcare venture in India is expecting funds worth INR 100 Crores.
- Narayana Health: This group has shown interest in buying the Westbank Hospital for INR 200 Crore, which would help Narayana healthcare to penetrate the healthcare sector in the eastern part of the country.
- Trivitron Healthcare: Kiran Medical Systems and Imaging products based in Mumbai has been acquired by Trivitron Healthcare. The fine print of the dealing has not yet been disclosed.
- GPT Healthcare Pvt Ltd: A Kolkata based company with the ownership of a chain of hospitals has raised funding of an undisclosed amount from Banyan Tree Growth Capital.
- Sterling Group of Hospitals: Along with India Home Health Care is starting a joint venture called, Asillis Home Healthcare that would provide home health care services.
- American Megatrends India: Along with UniverCell has plans to enter the health and fitness category by introducing a health monitor, BOLT that would interpret the medical information and would allow a user to access it through a cloud enabled smart app.
Allied healthcare serices with progressive growth rate
The growth of the healthcare industry in India has made it one of the fastest growing sectors of the country. According to a study, the Indian healthcare sector has achieved growth and path a rate of 23% p.a. From the year 2000 to 2009, which indeed is aplausible.
The diagnostic and pathology services accounted for USD 2.5 Billion in 2012, which was double the estimated size. The major driver of growth in this segment of healthcare is due to the rise in insurance penetration and the consolidation in the industry.
This segment of healthcare is one of the most lucrative segments to invest all across the world. The growth in IVD and Molecular science has enormous untapped potential, which has attracted global leaders to mark their presence in the Indian Healthcare Industry.
Molecular diagnostics has undergone considerable growth over the last five years, the growth rate was 15%. This sub-domain of diagnostics, analyzes the DNA and the RNA at a molecular level, making it the fastest growing market, fuelled by growing information of the human genome.
The other rise and promising job domain in healthcare are IVD or In-Vitro Diagnostics, which was estimated above USD 300 Million. The IVD segment has undergone tremendous growth in the last decade. The IVD revenue was generated by labs with a remarkable contribution of 65% and the rest 35% was contributed by hospitals. This segment is also classified as; public and private; which includes Indian corporate and some unorganized players. With the increase in FDI, some major players from international markets are also expected to compete with the existing ones.
Job opportunities in Healthcare
The above-mentioned segments of healthcare would be the primary drivers, for improvement in the healthcare services, as molecular diagnostic will allow medical practitioners to reach the root of the problem.
Medical technicians, with experience and education in managing and operating a pathology would be in the middle of the rise in demand, as pathological services account for 2% of the total healthcare markets, with a growth rate of 15-20% every year, which is expected to stay uniform for the next five years.
Medical tourism is also an emerging segment of healthcare sector, India serves as a top destination for medical tourism owing to the broad gamut of medical facilities at much more affordable rates as compared to other developed nations. Professionals, who do not possess a medical background would be benefitted as the influx of medical tourists has increased significantly which is associated with the demand for human capital to support and maintain this booming segment of Healthcare, propelling India to reach the top among its competitors. The annual growth rate of this sector has been reported to be around 30%, which would make this sector reach up to USD 2 Billion by the end of 2015.
With the increase in investments, healthcare spend, rise in population, changing demographics; also the rise in demand of elderly healthcare and support, which has made the career opportunities in healthcare tread a remarkable growth curve. Professionals employed in this sector will undergo drastic improvements in their career path, career scope, earning potential and job prospects.
The investments made in this domain does have an impact on job opportunities in healthcare, as hospitals increase their bed count, diagnostic services, medical equipments. Not only the private sector, the public sector also will generate job opportunities in healthcare as the Central Government is establishing All India Institute of Medical Sciences, in various tier II cities.
The increase in investments and compliance to international standards, availability of new technology and lower treatment costs, will impact the revenues earned by the healthcare sector giving indirect boost to job opportunities in Healthcare.
As a professional in healthcare sector your growth will be aligned with that of the sector and as new investments are brought in, which would be a positive reaction for job opportunities in Healthcare.