jaipur city healthcare landscape
DESCRIPTION
The latest report by leading management consulting firm Kanvic has projected that the upcoming opening of new hospitals and the expansion of existing facilities in Jaipur will soon close the supply-demand gap for beds in the city. And with greater choice for patients, the city’s healthcare players are set to face tougher competition.TRANSCRIPT
This note has been prepared by Kanvic for the exclusive purpose of our Clients. The material contained herein cannot be copied, used, circulated for any other purpose. All rights reserved Kanvic Consulting Private Limited.This note has been prepared by Kanvic for the exclusive purpose of our Clients. The material contained herein cannot be copied, used, circulated for any other purpose. All rights reserved Kanvic Consulting Private Limited.
Jaipur city healthcare landscape Kanvic Consulting
Contents
2
A Overview of Indian Healthcare MarketStrong growth
B Jaipur city healthcare landscapeClosing of supply demand gap
Key trends Directions for future
C
Overview of Indian Healthcare MarketStrong growth
Note: E = Estimated Source: IBEF
The Indian healthcare market has grown at 15% CAGR over last five years with the hospital segment contributing 71% to the total market size
3
2008 2009 2010 2011 2012 E
78.6
68.4
59.5
51.745.0
Hospitals PharmaInsurance & Medical equipments Diagnostic
Size of healthcare market in India, USD billion
Segment wise market share in India
CAGR 15%
3%13%
13%
71%
Source: NSSO, Crisil
Increasing healthcare spend and growth in inpatients will further drive industry growth
4
Monthly per capita expenditure, Rs.
2002 2006 2008 2010 2012
95
57
494432 146
99767155
Urban Rural
2006 2013
2160
637
840617
OPD IPD
Revenue from outpatients and inpatients, Rs. billion
CAGR
11.50%
10.26%
CAGR
19.06%
4.51%
Source: WHO
The low availability of hospital beds and physicians offers a big opportunity in India
5
6.5
12.2
17.6
24.2
27.7
4.9
14.6
36.9
9
22
23
30
30
36
39
82
Physician per 10,000 population
Hospital beds per 10,000 population
Germany
UK
USA
Brazil
China
Vietnam
India
Sri Lanka
Note: * 2013 figures till September 13 Source: Venture Intelligence, Kanvic research
The healthcare sector has attracted the attention of Private Equity in recent years
6
2011 2012 2013*
526.8
1146.4
429.2
• Private Equity and Venture Capital are taking interest in the healthcare industry. The share of PE investment in healthcare sector shot up to 12 percent in 2012.
• Both multi speciality and single specialty hospitals are gaining the attention of PE/VC investors.
PE investment in healthcare sector in India, $ Mn
Healthcare sector share in total PE investment
4% 12% 10%
Contents
7
A Overview of Indian Healthcare MarketStrong growth
B Jaipur city healthcare landscapeClosing of supply demand gap
Key trends Directions for future
C
Jaipur city healthcare landscapeClosing of supply demand gap
Source:
Jaipur is a fast growing city with hospitals clustered around Tonk Road and JLN Marg
8
New developmentKalwar Road
New developmentAjmer Road
New developmentTonk Road
New developmentAgra Road
New developmentSikar Road
Major Hospitals in Jaipur
Source: Kanvic research
Jaipur’s healthcare market has evolved over the years
9
1947
2000s1971
SMS Medical college is set up by the Government
First private hospital Santokba Durlabhji Memorial Hospital (SDMH), run by a trust, is inaugurated
Institute based hospitals are set up after privatisation of medical education in the state
Narayana Hrudayalaya, a leading Cardiac care hospital in India, opens in Jaipur
Soni hospital starts operations with 20 beds
1986 2004
S K Soni Hospital begins operations with super specialities in cardiology, cancer, nephrology and neurosurgery
100 bedded Tagore hospital begins its operations
Fortis Escorts, the first corporate hospital in Jaipur, opens its doors to the public
2006
2007
2010
Evolution of healthcare market in Jaipur
First public private partnership Metro hospital established. PPP between Metro Group and the Govt. of Rajasthan
2012
Eternal Heart Care Center started. Nova speciality surgery also begins its operations
2013
Source: Government of Rajasthan
The Government of Rajasthan has introduced a healthcare policy to promote the healthcare industry
10
•Minimum investment of Rs. 10 Crore in a Health Care Facility
•Minimum investment Rs. 5 Crore in case of Nursing and Para Medical Institutes
•Minimum investment Rs. 50 lakh in case of 15 bed hospitals/nursing homes situated in towns/villages
•The project should be completed in a period of 3 years from the date of allotment
•Those who have been allotted land on concessional price, shall have to keep 10% of beds reserved for BPL (Below Poverty Line) patients
•Those patients will be treated free and will pay only 25% of the charges incurred on Drugs and Diagnostics
•The order of Priority for land allotment is as bellow:
1. Multi Super Specialty Hospitals2. Single Super Specialty Hospitals3. Medical colleges with Teaching Hospitals4. Dental Colleges with General and Dental Hospitals5. General Hospitals6. Support units like State of Art Diagnostic Centres/Blood Banks/ Nursing and Paramedical Training Institutes
Eligibility
•The hospitals will have an exemption from electricity duty on captive generation as per the provisions laid down in clause 8 (iii) of Rajasthan Investment promotion policy (RIPS) 2003 for a period of 7 years
•50% exemption in stamp duty (as per clause 8(iv) of RIPS 2003)
•50% exemption in conversion charge (as per clause 8(v) of RIPS 2003)
A Land allotmentB Tax benefitsC
Source: Press clippings, Kanvic research
New hospitals will increase the supply of beds in the market
11
Hospital Speciality No. of beds Proposed
investment, Rs. Crore
Reliance Medicare Super Speciality 800 200
Bombay Hospital Multi Speciality 650 150
Max Hospital Multi Speciality NA NA
International Oncology cancer Hospital Super Speciality 100 54
Apollo Hospital Super Speciality NA NA
Shalby Hospital Super Speciality 300 NA
B M Birla Heart Research Centre - NA 300
Manipal Hospital Multi Speciality NA NA
Jaipur National University’s Medical College Multi Speciality 1000 NA
Proposed new hospitals in Jaipur
Note: 1 Demand for beds is based on WHO standard of 35 beds for a population of 10,000.
Source: Kanvic research
The supply of beds may exceed the existing demand in the near future
12
Total Demand for beds1
Existing supply
Proposed addition
Future supply
5,622
13,005
3,150
Demand supply situation in Jaipur, number of beds
13,1494,377
Government hospitals Private hospitals
Contents
13
A Overview of Indian Healthcare MarketStrong growth
B Jaipur city healthcare landscapeClosing of supply demand gap
Key trends Directions for future
C Key trends Directions for future
There are key five trends in Rajasthan’s healthcare industry
Key trends
1New investments
2
4
3
5
14
Public private partnership model
Awareness on quality accreditation
Tie up with other speciality care Ultra luxury hospital
Jaipur is evolving from a tourist city to a medi-city
Source: Press clippings, Kanvic research
Rajasthan’s healthcare industry has received significant new investments in the past few years
15
ASG Eye Hospitals, a Rajasthan based group of super specialty eye hospitals has raised Rs. 50 crore from Sequoia Capital. The funding will be used to support expansion in central and north India. The hospital started in 2006 and has presence in 6 cities across Rajasthan. The group now plans to expand to Jharkhand, Madhya Pradesh, Uttar Pradesh, Chhattisgarh and Bihar.
Private equity (PE) firm Matrix Partners India has invested around Rs 30 crore in Mewar Orthopedic Hospital, a group that runs specialised units for surgical orthopedics. Matrix will take an approximate 20% stake in the hospital chain that operates six centres across a host of cities including Udaipur and Bhilwara in Rajasthan and Ujjain in Madhya Pradesh.
Pandya Hospital & Research Center has become Nova Speciality Surgery. The hospital opened its facility on the premises of the erstwhile Pandya Hospital & Research Center Jaipur.
1
Fortis Healthcare Ltd has bought 100 beds Lifeline Hospital in Alwar, Rajasthan. Lifeline Hospital plans to expand it to a 150-bed facility in near future. The hospital will be re-named as 'Fortis-Lifeline Hospital'.
Government of Rajasthan has established a first-of-its-kind public private partnership hospital in Jaipur
16
•The state’s first multi-specialty hospital on a public private partnership (PPP) basis, Metro Manas Arogya Health and General Hospital, opened in Jaipur in 2012.
•The hospital has 22 specialties in the initial stage.
Metro Manas Arogya Health and General Hospital
2
Note: NABH is a constituent board of Quality Council of India was set up in 2005 to establish and operate accreditation programme for healthcare organisations in India. NABH has standards specific to the Indian healthcare setting, major aspects being the assurance of uniform access, assessment, care of patients and protection of patient’s rights.
Source: NABH
A number of hospitals in Jaipur have already received NABH quality accreditation
17
Hospital Status of Application
Fortis Hospital Got Accreditation
Apex Hospital Got Accreditation
S.K. Soni Hospital Got Accreditation
Jaipur Hospitals going for NABH accreditation
Bhandari Hospital Got Accreditation
Heart & General Hospital Got Accreditation
3
SDMH In process
BMCHRC Documents received
Tagore Hospital In process
Monilek Hospital Documents received
Source: Press clipping, Kanvic research
Hospitals are exploring partnership opportunities with other speciality care centres
DCDC Kidney Care
• DCDC is one of the most trusted institutions in Dialysis care delivery in Delhi / NCR and rapidly expanding to establish a wide network in all formats.
18
SK Soni Hospital
DCDC Kidney Care, north India’s biggest chain of dialysis centres, opened its first unit for Rajasthan at SK Soni Hospital, Jaipur. The modern unit consists of 15 dialysis machines with 24 hrs service facility to patients from Jaipur and adjoining towns.
4
• S K Soni Hospital is one of the super speciality hospitals in Jaipur with 225 beds. The hospital started its operations with super specialities in cardiology, cancer, nephrology and neurosurgery.
India’s first ultra luxurious birthing centre “cocoon” launched in Jaipur
19
5
•Cocoon hospital is an ultra luxurious birthing centre with seven star hospitality and high-end medical care. The hospital is equipped with all the modern pre and post natal healthcare facilities.
•Cocoon provides world-class medical facilities like modular operation theatres, LDR suites, Level 3 neonatal intensive care units, fully motorised imported medical beds and examination couch, 4D ultrasound technology.
Contact
www.kanvic.com
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Deepak Sharma
M: +91 99283 77800E: [email protected]
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Ravindra Beleyur
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Vlad Flamind
M: +33 7624 51907E: [email protected]
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Gehan Wanduragala
M: +44 7825 160716E: [email protected]
Jaipur
Shiv Kumar Sharma
M: +91 75685 21803E: [email protected]
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