Chain of Hospitals

Index : 1,250 | 1Yr : -12.23% | 1Mo : +2.09%

Category : Sectoral Trackers

Min Investment : 5,801

Sharpe Volatility Trend

The healthcare industry is at the crossroads of new opportunities. India's competitive advantage is that it has a large number of skilled english speaking medical professionals and the cost of surgeries are roughly 10 percent of the developed world. The market is expected to almost double to USD 280 billion by 2020 with a CAGR of more than 20 percent. With the government taking on the role of the insurer rather than a provider has expanded the user base and security of payments. Private Public Partnerships (PPPs) are gaining acceptance and the huge demand supply mismatch has encouraged large investments into the sector.

There is a requirement of at least 600,000 additional beds which is a rough indication of the sheer demand for the sector. The doctor-to-patient ratio for rural India is 1:30000 well below the WHO's recommended 1:1000 ratio. Medical tourism is also a major demand drive as more than 200,000 people arrive in India each year for treatments.

Private sector hospitals have are the order of preference for almost the entire section of society who have medical insurance to pay for the bills. The GOI launched Rashtriya Swasthiya Bima Yojana (RSBY), a health insurance coverage which is subsidized for below poverty line families for only Rs.30/- per registration. This move will help the poor to get treatment at private hospitals thereby boosting the revenues of the sector to a large extent. The government has also relaxed taxes up to 5 years for private hospitals which are set up in tier 2 & tier 3 cities. Large private hospital chains are also entering into management contracts with local hospitals too.

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