'Healthcare sector likely to hit $155 bn revenue by 2017'
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Attracting strong interest from private equity funds, the healthcare industry in India is expected to reach USD 155 billion in terms of revenues by 2017, according to a study by LSI Financial Services.
At present the industry is pegged at USD 65 billion, of which 30 deals valued at USD 754.33 million were signed last year, the report by the Kolkata-based financial services company said.
Stating that the healthcare sector attracts 4.6 per cent of total GDP spent in India, LSI Financial Services Managing Director Rajya Vardhan Kajaria said: "There is a huge demand- supply gap in the healthcare delivery business in India.
"The presence of public healthcare is not only weak but also under-utilised and inefficient. However, the private sector is quite dominant in this sector".
He said 74 per cent of the total spending on healthcare in India is from the private sector and that inadequate public investment in healthcare infrastructure has given opportunity to private hospitals to take a major share of the market.
The report was conducted in 100 top health care companies across India during the last three to four months, he said.
"Government policy has not been conducive to attract specialist doctors to rural areas and so the healthcare infrastructure in such areas where 65 per cent of the population live, continues to be inadequate," the report said.
It said while the national doctor-patient ratio was 1:1700, in rural areas it has plummeted to 1:25,000.
"Healthcare indicators in rural India are significantly bleaker than those in urban areas. This is witnessed by the fact that the difference of life expectancy between urban and rural India is currently 12 years," it said.
The government in order to alleviate the problem, announced an increase in allocation for National Rural Health Mission to Rs 20,822 crore for 2012-13, which is more than 15 per cent of Rs 18,115 crore alloted in 2011-12.