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The Healthcare Paradox in India

  • India's healthcare sector presents a not so healthy paradox. We spends Rs. 103000 crore – 5.2% of our GDP – on health care. This is comparable to the spends in most developing countries.
  • Yet we lag behind them on health indicators like life expectancy and morbidity.
  • A CII- Mckinsey study shows that the Indian healthcare sector is performing poorly on all key dimensions of coverage, purchasing and delivery.
  • Healthcare spend will increase from RS. 86000 crore to Rs. 200000 crore plus by 2012
  • We have to look for areas where the delivery of healthcare services will see significant improvement.
  • 60% of the healthcare spend in India is from private.
  • By 2012 the richest 15% will result for 50% of the healthcare spend.
  • Changing demographics and diseases profiles will cause the spending on healthcare delivery to more than double over the next 10 years.
  • The rising occurrence of cancer and heart diseases will drive the growth of this spend.