Indian Hospitals, Health care and Medical Services

India's hospitals and health care sector is in the middle of a high growth phase both in terms of volume and sophistication. The central and the state governments are major players in this sector running hospitals, nursing homes, medical, Nursing and para medical colleges, medical insurance etc. and in many rural and semi urban areas these are the only access to health care the locals have. The private sector has a large presence in urban areas running world class hospitals and other medical care facilities. The ministry of health and family welfare is responsible for formulation of national health policies and programmes and has mandated to provide minimum health care facilities to all by the year 2005 backed a large investment budget.

One of the principle drivers of India's hospitals sector is its gradual corporatisation during the last decade. The Chennai based Apollo Hospitals was a pioneer in this having started the country's first corporate hospital service in the early 80's. As hospitals, nursing homes and health care centres become more and more capital intensive with huge investments required in real estate and medical equipments corporatization with access to equity markets and public funding is the only route to bankroll such projects.

The government too has enabled this process by recognising hospitals as an industry thereby making it possible for banks and Investment Institutions to fund hospital projects. Foreign Direct Investments (FDI) has been allowed in this sector with automatic approval upto 51% by way of foreign investment in equity. Together these two act as powerful catalysts for the growth of health services.

With sweeping reforms planned for insurance sector health insurance currently a government monopoly is likely to be opened up for private sector with FDI allowed to a substantial extent. This will be a great impeller and this is expected to happen within the next 12-18 months.