Expenditure, Telemedicine And More: Financial Sustainability In The Healthcare Sector Over the past decade, the Indian healthcare sector has experienced substantial growth, with the market value increasing from USD 77 billion in 2014 to an estimated USD 479 billion in 2024.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The Indian healthcare industry stands as a critical pillar in the nation's socio-economic landscape, covering a huge and diverse array of services and stakeholders. A multi-layered landscape, the Indian healthcare industry includes public and private entities, ranging from government hospitals and primary health centers to a mushrooming network of private healthcare providers.
A report titled 'Financial sustainability in the healthcare sector' by Grant Thornton Bharat and Association Of Healthcare Providers India (AHPI) has come up with insightful details regarding the current scenario, here are some significant discoveries.
1. Over the past decade, the Indian healthcare sector has experienced substantial growth, with the market value increasing from USD 77 billion in 2014 to an estimated USD 479 billion in 2024, highlighting its resilience and adaptability in addressing the evolving healthcare needs of the population and contributing significantly to India's economic development. In addition, healthcare has emerged as top priority for PE, VC investors in India*.
2. The National Health Accounts 2019 - 20 estimates that India's total healthcare expenditure has been steadily increasing, but is significantly lower, as a large portion of the spending is attributed to out-of-pocket payments by individuals. This emphasises the importance of exploring avenues to reduce the financial burden on individuals and enhance the overall affordability of healthcare services. The government has recognised this challenge and has implemented various schemes and policies to increase public spending on healthcare, aiming to reduce the dependence on out-of-pocket expenses.
3. The COVID-19 pandemic in 2020 caused a significant economic downturn, with a -5.8% GDP growth contraction — the first recession in decades.
4. Further, globally, India is at the lowest end on healthcare parameters. India's lower healthcare expenditure as a percentage of GDP compared to the developed countries is influenced by economic disparities, a vast and diverse population, and a significant reliance on private healthcare.
5. Telemedicine is a fast-emerging segment in India. Virtual care, constituting tele-consult, telepathology, teleradiology and e-pharmacy, is experiencing a stimulus in India. Major hospitals have adopted telemedicine services and PPPs. • By January 2023, the Health Ministry's eSanjeevani telemedicine service crossed 10 crore tele consultations. The telemedicine platform has peaked to serve 5,10,702 patients in a day.
6. Around 514 million people across India were covered under health insurance schemes in 2021, which merely covers 37% of the people in the country. • Gross direct premium income underwritten by health insurance companies grew 21.3% YoY in 2023 to USD 9.7 billion.
7. Digital health knowledge resources, electronic medical record, mobile healthcare, electronic health record, hospital information system, Practo, technology-enabled care, telemedicine and hospital management information systems are some of the technologies gaining wide acceptance in the sector. • More than 450 Mn ABHA IDs have been created, 2,19,546 Health Facilities have been registered, and around 2,28,794 Healthcare Professionals have been on boarded under ABDM.
Source: Grant Thornton Bharat and Association Of Healthcare Providers India (AHPI)
