30 Noveber 2010
By Bushra Baseerat
Plan Branches In Kolkata, Mumbai, Delhi, Chennai
Similar is the story with Krishna Institute of Medical Sciences (Kims) which plans to set up centres at Kolkata, Assam and Chhattisgarh pumping in Rs 100–150 crore for each centre in the next two years. Care Hospital is adding another centre at Bhubaneshwar as well as Raipur and planning for a 100–bedded hospital in Pune. Even as the city’s hospitals are busy making room for themselves in other parts of the country, healthcare experts view this as a step ahead for the sector.
With the existing patientbed ratio of 0.06 beds per 1,000 population in the country, experts put this as the reason for the growing trend of doctors – turned–entrepreneurs realising the tremendous potential.
Speaking in context of shortage of beds, Dr K Ravindranath, CMD, Global Hospital, says that even if India adds one lakh beds annually for the next 10 years, the country cannot equal China. World Health Organisation prescribes a patient–bed ratio of one bed per 1,000 population.
Investing Rs 300 crore towards its Mumbai branch, Global’s focus would be on transplantations. "We are leaders in organ transplantations and its focus would remain the same in Mumbai. Beds available in Mumbai today are inadequate like in any other part of the country," he said.
In fact, it was because of the huge gap in demand and supply that health was the only sector which did not suffer during the recent recession and hospitals went ahead with their expansion plans. "The reverse drain of expertise from US and UK, easy availability of loans and funding, medical tourism and health insurance are all contributing to this trend of expansion," says Dr M Veera Prasad, chief operating officer, Narayana Medical College.
As the compounded annual growth rate for the health sector stands at 16–18 per cent, Veera Prasad says that even if the hospital does not market itself, it will keep growing.
According to estimates, an investment between Rs 20 crore to Rs 500 crore is required to set up a hospital depending on the number of beds, specialities and other facilities. Dr M Anil Kumar, VP, Narayana Hrudayalaya Hospital states that by replicating the model in places like Delhi, Mumbai and Bangalore, the hospital can make three times more than what they are earning in a city like Hyderabad after they break even.
While Arogyasri scheme in the state has assured private hospital beds are occupied, experts say that the highly competitive private sector is under tremendous business pressure to meet its ever growing targets. Analysts, however, aver that hospitals that have made their mark in Hyderabad are now trying to cash in on their brand names.
"Given that healthcare is a business, expanding to other cities is clearly a well thought out business plan that guarantees good returns,’’ says an industry observer. Besides, these local hospitals going national are only filling a gap.
Dr P V Ramesh, special secretary, health, states that even after several years of development, none of the metros has the wherewithal to handle the growing patient load. "Hyderabad has been a pioneer in advanced healthcare in India. Having seen success here, there are huge opportunities for these hospitals to tap other markets as there is absolutely no infrastructure in many parts of the country and public health institutions are unable to respond to the need," says Dr Ramesh.
He further says that currently, the health sector in India is pegged at Rs three lakh crore annually out of which a massive 30–40 per cent of the contribution is through hospital care.
- Global Hospital to launch branches in Mumbai, Kolkata and Bhubaneshwar by next year. Plans to set up a centre at Delhi too
- Yashoda Hospital to have its branches in Chennai, Bangalore, Mumbai and Delhi by 2012 Krishna Institute of Medical Sciences (Kims) to set up centres at Kolkata, Assam and Chhattisgarh by 2012
- Care to set up centres at Bhubaneshwar, Raipur. Plans another centre at Pune
- Seven Hills Hospital (Visakhapatnam) set up a health city in Mumbai four months ago