Hospital market in india 2014 - Sample

Hospital Market in India

March 2014

2 HOSPITAL MARKET IN INDIA 2014.PPT

Executive Summary

Drivers & Challenges

Competitive Landscape

Drivers: Shortage in Number of Hospital Beds Increasing Lifestyle Diseases Surge in Medical Tourism Government Initiatives Propelling

Investment Growing Target Hospitalization Population

Group Growing Health Insurance Market Rising Disposable Income

Challenges: Shortage of Medical Professionals Lack of Investment in IT Infrastructure Shortage of FDI Inflow in Indian

Hospitals

The hospital market in India was valued at INR X1 units in 20-- and is expected to reach INR X7

units by 20-- The sector is divided primarily into public and private hospitals, along with NGO operated

hospitals Constantly rising population results in perennial shortage of hospital beds in India

Specialty Clinics Glocal Healthcare Systems

Hospital Mobile Applications Hospital Information Centre

Luxury Offerings Diversified Business Approach

Key Players

Player A Player B Player C

Player D Player E Player F

Market Overview

Key Trends

http://www.netscribes.com/

3

•Economic Indicators •Indian Healthcare Scenario •Introduction •Market Overview •Drivers & Challenges •IT Adoption •Role of Government •Key Trends •Key Initiatives •Competitive Landscape •Trade Fairs & Events •Recent Transactions •Strategic Insights •Appendix

HOSPITAL MARKET IN INDIA 2014.PPT


4

SAMPLE Economic Indicators (1/3)

14.71

11

12

13

14

15

INR tn

Q4

n4 m4

Q3

o3 n3

m3

Q2

p2 o2 n2

m2

Q1

p1 o1 n1

m1

20-- - -- 20-- - -- 20-- - -- 20-- - --

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

0.83

1.26

0.42

0.85

1.73

0.0

0.5

1.0

1.5

2.0

Jun 2013 - Jul 2013 Oct 2013 - Nov 2013

%

Sep 2013 - Oct 2013 Aug 2013 - Sep 2013 Jul 2013 - Aug 2013

MEDICAL DEVICES MARKET IN INDIA 2014.PPT


5

Healthcare system in India requires a larger public outlay due to huge population base Healthcare Industry Overview

•According to “World Health Statistics 2011 Report, India”,

healthcare comprised 4.2% of India’s GDP in 2008 Public and private expenditure on healthcare as percentage of

GDP was 1.4% and 2.8% respectively

• Favorable demographics, increase in awareness levels

and better medical care are some of the driving factors

behind the healthcare sector in India

•Hospitals form the largest segment of overall healthcare

market, followed by pharmaceuticals, medical devices,

health insurance and diagnostics

•Gradual penetration of health insurance is making health

services more affordable through increased demand for

preventive and curative healthcare services

• Superior quality healthcare, coupled with low treatment

costs in comparison to other countries, is benefiting

Indian medical tourism which has, in turn, enhanced the

prospects of the Indian healthcare market Treatment for major surgeries in India costs approximately 20%

of that in developed countries

Healthcare Sector – Market Size & Growth

0

5

10

15

h6

2017e

INR units

2016e

H%

2018e

h7

h5

2015e

h4

2014e

h3

2013e

h2

2012

h1

Healthcare Market Segmentation: Overview

C% A%

E%

B%

D%

F%

F D

E C

B

A

Note: ‘Others’ include healthcare IT and allied activities in healthcare space



6

Hospitals can be classified on grounds of ownership and clinical operation

Classification of Hospitals

Public Hospitals

Run by Central Government, State Government and local bodies

Private Hospitals

Run by Central Government, State Government and local bodies

Ownership Basis

Corporate Hospitals

Public limited companies formed under Companies Act run commercially and are likely

to operate chain of hospitals

Voluntary Hospitals

Functions with public or private funds on a non-commercial basis

Clinical Basis

General Hospitals

Hospitals staffed by at least two medical officers that provide in-patient accommodation

and medical care for more than one category of medical discipline

Specialized Hospitals

Provide medical attention for one discipline and are administratively attached to a general

hospital

Isolation Hospitals

Hospitals dedicated to the care of persons suffering from infectious diseases

Tertiary Hospitals

State and Central government hospitals established in respective state capitals

Teaching Hospitals

A hospital to which a college is attached for medical/dental education

Rural Hospitals

Located in rural areas permanently staffed by at least one physician that provides in-patient

accommodation and medical care for more than one category of medical discipline



7

Most concentrated healthcare facilities

Presence of mostly unorganized players providing sub-optimal care at

higher cost to patients • Almost 70% of population reside in areas

that have a 15% share of healthcare resources

• Limited healthcare facilities eventually lead to rural urban migration for treatment

Hospitals comprise the most crucial aspect of healthcare sector, constantly developing to provide world class services

•Hospitals are a major component of the Indian healthcare industry generating more than 50% of total healthcare sector’s revenue

•Hospital sector can be classified into two types, namely public and private There are ~a private hospitals and ~b public hospitals across

the country

• Potential growth prospect of Indian healthcare industry is attracting many foreign companies that are willing to invest or establish base in India There is a growing trend to tap the high potential tier II and

tier III cities

A trend of growth in specialty and multi specialty hospitals in the country has also been observed

• Indian healthcare delivery distribution network exhibits a skewed pattern with private sector ruling the roost Indian healthcare scenario is dominated by the private

sector catering to almost 80% of overall patient population

Hospital beds are segmented in 60:40 ratio between private and public hospitals

Market Overview (1/2) Market Size and Growth – Private Hospitals

0

1

2

3

4

5

6

INR units

X%

20--e

X7

20--e

X6

20--e

X5

20--e

X4

20--e

X3

20--e

X2

20--

X1


Rural

Semi Urban

Urban

Healthcare Delivery Distribution


8 HOSPITAL MARKET IN INDIA 2014.PPT

Drivers & Challenges – Summary

Drivers

Shortage in Number of Hospital Beds

Increasing Lifestyle Diseases

Surge in Medical Tourism

Government Initiatives Propelling Investment

Growing Target Hospitalization Population Group

Growing Health Insurance Market

Rising Disposable Income

Challenges

Healthcare Infrastructure Gaps

Lack of Investment in IT Infrastructure

Shortage of FDI Inflow in Indian Hospitals


9

Slow progression of IT adoption in hospitals with only high end corporate hospitals…

• Emergence of new corporate hospitals is popularizing IT adoption with integrated enterprise resource planning (ERP) and hospital information systems (HIS)

• Indian Health IT market is fragmented with offerings from small to medium players and a few enterprise players

•Huge cost involvement has led to hospitals adopting only hospital management modules and not venturing into clinical aspects of hospital automation

IT Adoption in Indian Healthcare IT Adoption – Market Size & Growth

0

5

10

15

20

25

30

35

40

INR units

A%

a6

20--e

a5

20--e 20--e

a4

20--e

a3

20--e

a2

20--

a1

• Business streamlining and patient administration are the biggest benefits of IT adoption in hospitals

• IT leveraging and sharing data on cloud helps in saving infrastructure and manpower to a great extent

• High growth opportunity of IT services in healthcare sector with majority of hospitals awaiting IT adoption

• Growing number of corporate hospitals and their number of branches

• Corporate entities setting up state-of-the-art hospitals

• Poor IT budget and cost pressures de-motivate large scale IT adoption

• Lack of adequate regulatory controls for automation of Indian hospitals

• Lack of awareness also adversely impacts IT adoption in hospitals

• Unavailability of any full time IT personnel in hospitals results in absence of initiatives towards IT adoption

Strengths of Indian Healthcare IT Weaknesses of Indian Healthcare IT



10

SAMPLE Role of Government: Summary

Role of

Government

Budgetary Allocation

Financial Incentives Public Private Partnerships

(PPPs)



11

SAMPLE Key Trends – Summary

Diversified Business Approach

Specialty Clinics

Glocal Healthcare Systems

Hospital Information Centre

Luxury Offerings

Hospital Mobile Applications

Key Trends



12

SAMPLE Key Initiatives – Summary

Key Initiatives

Health Cities

Telemedicine Mobile Hospitals



13 MEDICAL DEVICES MARKET IN INDIA 2014.PPT

Key Ratios of 3 Major Companies – Operational Basis (FY 20-----) (1/4)

Competitive Benchmarking (2/5)

0

20

40

60

c3 b3

Player B Player C

a3

%

c2

b2

a2

Player A

c1 b1

a1

Net Margin Operating Margin Gross Margin (%)

• Player A recorded gross margin of a1% higher than both Player B and Player C which recorded gross margins of b1% and c1% respectively

• Player A recorded operating margin of a2%, higher than both Player B and Player C which recorded operating margins of b2% and c2% respectively

• Player A recorded net margin of a3% higher than both Player B and Player C which recorded net margin, of b3% and c3% respectively

Note: Calculation on basis of figures for latest available financial years


14

SAMPLE Public: Domestic Company – Player A (1/4)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address xx

Tel No. xx

Fax No. xx

Website xx

Year of Incorporation xx

Ticker Symbol xx

Stock Exchange xx

Name Designation

Thane

Head Office

Category Products/Services

Healthcare Equipment and Supplies

Manufactures and sells sterile needled sutures such as absorbable , non absorbable sutures, female urinary incontinency set, surgical mesh, disposable skin stapler, cardiovascular vessel knife



15

SAMPLE Key Ratios

Financial Summary

• The company earned a net profit of INR 15.74 mn in FY 20--, as compared to net profit of INR 15.09 mn in FY 20--

• The company reported total income of INR 540.87 in FY 20--, registering an increase of 3.06 per cent over FY 20--

• The company earned an operating margin of 7.48 per cent in FY 20--, a decrease of 0.46 percentage points over FY 20--

• The company reported debt to equity ratio of 0.72 in FY 20--, an increase of 10.58 per cent over FY 20--

Financial Summary

Net Profit / Loss Total Income

20.79

0

200

400

600

-20

0

20

40

2010

15.50 476.38

INR mn

2011

502.45

2012

15.09

INR mn

540.87 524.80

2013

15.74

Indicators Value (22/01/2014) Market Capitalization (INR) 167.82

Particulars y-o-y change

(2011-10) 2013 2012 2011 2010

Profitability Ratios Operating Margin -0.46 7.48% 7.94% 9.15% 8.09%

Net Margin 0.02 2.89% 2.87% 4.14% 3.25%

Profit Before Tax Margin -0.03 4.77% 4.80% 6.39% 4.94%

Return on Equity -0.48 9.01% 9.49% 14.45% 12.60%

Return on Capital Employed -2.32 19.00% 21.32% 25.47% 25.19%

Return on Working Capital -3.93 24.87% 28.80% 35.41% 38.05%

Return on Assets -1.20 8.52% 9.71% 10.69% 9.81%

Return on Fixed Assets -0.98 83.26% 84.24% 98.45% 74.55%

Cost Ratios Operating costs (% of Sales) 0.43 92.48% 92.06% 90.85% 91.91%

Administration costs (% of Sales)

0.94 41.69% 40.75% 42.02% 37.63%

Interest costs (% of Sales) 0.43 2.30% 1.87% 1.66% 2.92%

Liquidity Ratios Current Ratio 0.08% 1.62 1.62 1.52 1.42

Cash Ratio 247.52% 0.12 0.03 0.01 0.02

Leverage Ratios Debt to Equity Ratio 10.58% 0.72 0.66 0.70 0.95

Debt to Capital Ratio 6.14% 0.42 0.40 0.41 0.49

Interest Coverage Ratio -23.00% 3.26 4.24 5.51 2.77

Efficiency Ratios Fixed Asset Turnover 4.48% 11.08 10.60 10.76 9.21

Asset Turnover -7.30% 1.13 1.22 1.17 1.21

Current Asset Turnover -8.59% 1.27 1.39 1.32 1.40

Working Capital Turnover -8.71% 3.31 3.62 3.87 4.70

Capital Employed Turnover -9.99% 1.80 2.00 2.06 1.99

Improved Decline

Financial Snapshot

Public: Domestic Company – Player A (2/4)



16

Key Business Segments Key Geographic Segments

Business Highlights

Description Details

Overview • Is an ISO 9001:2008 certified company • Introduced Good Manufacturing Practice in production and quality control areas ,including detailed batch

record maintenance, recall system, procedure and production environment control and staff training

Medical Equipment and Supplies

• Product profile includes absorbable sutures ,including natural sutures and synthetic sutures •Offers non absorbable sutures ,including needles for cardiovascular surgery, needle suture combinations

and temporary pacemaker electrode • Provides medical devices such as female urinary incontinency set, surgical mesh, skin stapler, titanium

haemostatic clip for cardiovascular surgery, disposable aortic punch for cardiovascular anastomosis and cardiovascular vessel knife

Recent Activities • It has consolidated its position in cardiovascular sutures segment and expects to carry out further

consolidation during 2013-14

Player A has been operating solely in the medical devices & surgical sutures segment over

the last five years

Player A has been operating solely in India over the last five

years

100%

40%

60%

80%

20%

0%

2013

100.0%

Manufacturing and Selling of Medical Devices

20%

0%

100%

80%

60%

40%

2013

100.0%

India

Public: Domestic Company – Player A (3/4)



17

SAMPLE

• X • X

• X • X

T O

W S

Public: Domestic Company – Player A – SWOT Analysis (4/4)



18

Private: Domestic Company – Player B (1/5)

Key People

Products and Services

Company Information

Corporate Address xx

Tel No. xx

Fax No. xx

Website xx

Year of Incorporation xx

Name Designation

Category Products/Services

Healthcare Service s It offers treatment for a wide range of diseases through its latest medical services and technologies

Bengaluru Head Office


Head Office – India


19

Shareholders of the Company as on xx/xx/20xx Ownership Structure

Name No. of Shares held

Total X

0.02%

2011

0.02%

99.98%

2012

99.98%

Directors or relatives of directors

Foreign holdings

Ownership structure corresponds to Date of AGM: xx/xx/20xx and xx/xx/20xx




20

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• Company earned a net profit of INR 76.5 mn in FY 2012, as compared to net profit of INR 25.3 mn in FY 2011

• It reported total income of INR 5,908.4 mn in FY 2012, registering an increase of 90.9 per cent from FY 2011

• Earned an operating margin of 97.97 per cent in FY 2012, a decrease of 1.41 percentage points over FY 2011

• The company reported a debt to equity ratio of 0.65 in FY 2012, a decrease of 26.93 per cent over FY 2011

Improved Decline

Net Profit / Loss Total Income

20

0

-20

6,000 80

60

40 4,000

2,000

0

INR mn INR mn

2012

76.5

5,908.4

2011

25.3

3,095.3

Particulars y-o-y change

(2012-11) 2012 2011

Profitability Ratios Operating Margin -1.41 97.97% 99.38%

Net Margin 0.48 1.29% 0.82%

Profit Before Tax Margin -1.41 97.97% 99.38%

Return on Equity 2.79 4.29% 1.50%

Return on Capital Employed 99.89 196.33% 96.43%

Return on Working Capital 7667.34 8072.94% 405.60%

Return on Assets 62.47 131.13% 68.66%

Return on Fixed Assets 119.43 254.43% 135.01%

Cost Ratios Operating costs (% of Sales) 1.41 2.03% 0.62%

Administration costs (% of Sales) 0.00 0.00% 0.00%

Interest costs (% of Sales) 0.00 0.00% 0.00%

Liquidity Ratios Current Ratio -37.78% 1.06 1.71

Cash Ratio -54.93% 0.53 1.18

Leverage Ratios Debt to Equity Ratio -26.93% 0.65 0.89

Debt to Capital Ratio -16.29% 0.39 0.47

Interest Coverage Ratio N.A. N.A. N.A.

Efficiency Ratios Fixed Asset Turnover 91.18% 2.60 1.36

Asset Turnover 93.73% 1.34 0.69

Current Asset Turnover 188.49% 4.88 1.69

Working Capital Turnover 1919.05% 82.40 4.08

Capital Employed Turnover 80.29% 3.31 1.84




21

SAMPLE Description News

Overview • It has a network of five tertiary care, nine secondary care and three primary care clinics across Bengaluru, Salem, Mangalore, Vijayawada, Vishakapatnam and Goa

Facilities

• Its services include plastic and cosmetic surgery, accident and emergency critical care, bone marrow transplants, bariatric surgeries, cancer care, dental implantology, eye surgeries and LASIK and several others

• Other services include anaesthesiology, cardiology, dermatology, dental medicine, diabetes and endocrinology, ENT, gastroenterology, general surgery, general medicine, maxillofacial surgery, medical and numerous other specialties

Accreditations • Group’s flagship hospital in Bangalore is NABH accredited and ranks among the Top 10 multispecialty hospitals in India

Business Highlights




22

SAMPLE • X

• X

• X • X

T O

W S




23

SAMPLE Appendix

Ratio Calculations

Operating Margin (Operating Income/Revenues)*100

Net Margin (Net Profit / Revenues) *100

Profit Before Tax Margin (Income Before Tax / Revenues *100

Return on Equity (ROE) (Net Income / Shareholders Equity)*100

Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100

Return on Working Capital (Net Income / Working Capital) *100

Return on Assets (Net Income / Total Assets)*100

Return on Fixed Assets (Net Income / Fixed Assets) *100

Operating Costs (% of Sales) (Operating Expenses / Sales) *100

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Interest Costs (% of Sales) (Interest Expenses / Sales) *100

Ratio Calculations

Current Ratio Current Assets / Current Liabilities

Cash Ratio {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

Debt to Equity Total Liabilities / Shareholders Equity

Debt to Capital Ratio {Total Debt / (Shareholders Equity + Total Debt)}

Interest Coverage Ratio EBIT / Interest Expense

Fixed Asset Turnover Sales / Fixed Assets

Asset Turnover Sales / Total Assets

Current Asset Turnover Sales / Current Assets

Working Capital Turnover Sales / Working Capital

Capital Employed Turnover Sales / Shareholders Equity



24

Thank you for the attention

About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives.

Hospital Market – India report is part of Research on India’s Healthcare Industry Series. For any queries or customized research requirements, contact us at:

Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.

Follow us on:

Phone: +91 22 4098 7600 E-Mail: [email protected]




mailto:[email protected]

https://www.facebook.com/Netscribes

https://twitter.com/netscribes

http://www.linkedin.com/groups?gid=1884612&trk=group-name

Hospital market in india 2014 - Sample

Business

Transcript of Hospital market in india 2014 - Sample