As its definition suggests, “Healthcare” is the organized provision of medical care to the individuals or the society. This sector is one of the most essential one in pursuit of the whole development aspect of the nation. It is not only contributing a lion’s share is the gross domestic product of the nation but also having a magnanimous impact on the channeling of the society as a whole. Sadly though, healthcare was until the last few years, one of the neglected sectors in India. But with the boom of the startup inclined atmosphere, this sector has gained quite a good pace on the track of advancement. Which in turn, is giving it a multidimensional aspect of growth and prosperity.
Hence, the sector can be analyzed bifurcating it into segments of measure which are as follows:
The purpose of healthcare is to provide a proper medium of connectivity for the medical practitioners and the masses, on a very vague note. Essentially, its purpose lies in its basic definition i.e. providing an organized medical care to the masses with proper hygiene. To suffice these needs, there are various startups like which help people order medical and healthcare equipments from various vendors.
There are various functions of the respective firms under this sector which includes delivering medicines to the patients, uploading the prescriptions online thereby reducing the chaotic task manually, selling healthcare products online and one of the most important task i.e. keeping proper health records by the doctors and maintaining the appointments of the patients, etc. The only major drawback of these modules is their chaotic and lengthy procedures.
Key Points & Case Study:
- India’s healthcare sector is expected to be 280 billion USD in size by 2020, growth at a CAGR of 16% according to the Federation of Indian Chamber of Commerce and Industry (FICCI)
- Private equity exits from healthcare sector jumped 25% in 2015 to 428 million USD as against 343 million USD in 2014 according to VCCEdge
- Amount of fresh investments in the sector remained flat at 1.3 billion USD in 2015
- In the period from 2008-20, the market is expected to record a CAGR of 16.5%
- This is the trend in the healthcare growth rate (Source: ibef.org)
There is presumably a strong growth in the healthcare industry owing to the motivating and strengthening focus from diverse disciplines of professionals in this sector, more availability of workforce willing to work in this domain which in turn, synergically increases the expenditure effectively and productively in the sector. According to a survey, there has been a development of 50 technologically targeted ventures for the treatment of cancer and tuberculosis in the financial year 2016 which in itself is the proof of the growth and boom in the sector
Business Development Module:
The business development modules needs to focus more on the effective monetization part of the revenue generation as the sector should get benefited effectively and essentially both the ways. As a part of an example, there can be a stipulated share of the mediator or the respective firm in the doctor’s fee or the hospital’s gross income. More focus and plan of action needs to be imparted in the digitizing and the tracking aspect of the same, as there is a mild disorganized trait in the present situation. As also there is a need of an organized data storage module
The hospital and diagnostic centres attracted Foreign Direct Investment (FDI) worth US$ 3.59 billion between April 2000 and March 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP).
Some of the major investments in the recent years have been made in the Indian healthcare industry. With the growing concern of healthcare and hygiene throughout the world, the sector, in terms of its substantive growth as well as on the business tracks, turns out to be growing and blossoming effectively.
The inference note can be stated as follows:
Healthcare sector is materialistically having a great scope in the country as the number of deals in the major sectors of FY 2016 Q1 is most in healthcare going as high as 59%. Government is increasingly providing funds and opportunities to match up the expectations required in this domain. So there is a high response as well as demand which seem to be the two sides of the same coin, but which has a high potential for converging and turning out to be a huge face, nationally and globally.
[Top Image – Shutterstock]
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