Hospital is a health care institution providing patient treatment with specialized staff and equipment.
Hospitals are usually funded by the public sector, by health organisations (for profit or nonprofit), health insurance companies, or charities, including direct charitable donations. Historically, hospitals were often founded and funded by religious orders or charitable individuals and leaders. Today, hospitals are largely staffed by professional physicians, surgeons, and nurses, whereas in the past, this work was usually performed by the founding religious orders or by volunteers.
The Indian healthcare sector, one of the country’s fastest developing industries, is expected to grow at a compound annual growth rate (CAGR) of 15.2 per cent during 2011–17 to reach INR 9600 billion. There is immense scope for enhancing healthcare services penetration in India, which presents ample opportunity for development of the healthcare industry.
Of the total healthcare revenues in the country, hospitals account for 71 per cent, pharmaceuticals for 13 per cent and medical equipment and supplies for 9 per cent. The private sector has emerged as a vibrant force in India’s healthcare industry. Its share in healthcare delivery is expected to increase from 66 per cent in 2005 to 81 per cent by 2015.
India needs to cover the cumulative deficit of around 3 Million hospital beds to match up with the global average of 3 beds per 1000 population. Huge private sector investments will significantly contribute to the development of hospital industry, comprising around 80% of the total market.
There are 63 NABH (National Accreditation Board for Hospitals) approved hospitals in India and 395 hospitals have also applied for NABA accreditation.
India offers a huge patient pool, favorable regulatory environment and cost advantage for conducting clinical trials. The low cost of medical services has resulted in a rise in the country’s medical tourism attracting patients from across the world.
Big private players including Apollo, Fortis, and Max Healthcare are making huge investments in metropolitan cities like Delhi, Mumbai, Pune, Bengaluru, Hyderabad, etc for expanding their operations and increasing bed capacity. These cities are densely populated and have high proportion of middle-income earners, and the quality-of-life is better off compared to the other Tier-II and -III cities. The demand for good quality healthcare services is high in these areas, and thus, they are attracting private players in order to improve healthcare infrastructure in the country. By 2017, the healthcare industry size is expected to touch US$ 160 billion.