What Keeps the Healthcare Industry Up and Running?
A person’s health may see highs and lows but the healthcare industry has always seen exponential growth. The proof to this fact lies in the figures of revenue, CAGR and the number of increasing start-ups. Yes, the Indian healthcare industry is growing at a CAGR of 12% and has reached almost $280 billion by the start of 2020. Nearly 4892 start-ups have sprouted till date in the healthcare sector. All these stand testimonies to the fact that the healthcare industry is an up and running industry always.
Reasons why the healthcare industry is always up and running?
The healthcare industry is an evergreen industry with perennial demand due to the following reasons.
Lifestyle diseases are on the rise
Globalization has brought the world to our doorstep and with it come the influence of world cuisine, junk food, erratic work timings, increased stress, alcoholism, etc. All these have brought a dramatic change in our lifestyle ushering in a host of lifestyle diseases. Obesity, cholesterol, diabetes, hypertension and cardiac ailments are the lifestyle diseases on the rise.
Surge in diseases due to urbanization
Widespread urbanization is prevalent in India with mass migration of workers from rural areas to the cities. This has led to overpopulation in the cities, causing a scarcity for space and amenities. This results in poor living conditions with a lack of hygiene and sanitation. This may cause a surge in diseases due to urbanization requiring immediate medical intervention and treatment.
Health awareness has improved
With improved literacy and globalization, health awareness has improved among the public. People have realized the significance of the proverb-” Prevention is better than cure”. They are more eager to lead a healthy lifestyle sans diseases. That is why they seek clinical help for keeping their weight and vital parameters in check. People are more conscious of taking their vaccinations on time and go for their annual health check-ups regularly. Increased awareness has created a need for more healthcare services to maintain fitness.
More purchasing power
In recent years, the purchasing power of the Indian polity has increased tremendously. The consumerist culture has set in and changed the spending nature of Indians. Indians have more spare income at their disposal which they are wisely investing in healthcare.
Increasing use of Technology in Medicine
Technological trends have invaded healthcare bringing AI, AR and VR into the medical field. Telemedicine, EMR, Robotic surgery etc have become increasingly common. These technological innovations are revolutionizing healthcare and making it more affordable and accessible to all.
Medical Tourism
India is one of the most sought-after medical destinations for cost-effective clinical treatment. Medical tourism in India was expected to touch $9 billion by 2020. The drastic cost-savings on the medical treatment along with the quality of world-class clinical service make India the ideal destination for healthcare needs. Indian hospitals owe much of their profitability and revenue to their international patients.
The Surge of pandemics and viral diseases
Whatever may be the technological trends or financial progress, the surge of viral diseases and pandemics continue to attack our world mercilessly. Recent pandemic attacks like SARS, MERS and COViD-19 in this recent decade have only proved that healthcare is more needed than ever in today’s world. Medical research attempts to find cures for these viral epidemics and pharmaceutical companies labour to manufacture these cures. Hospitals are battling bravely to save the lives of those affected by viral diseases and are in a state of high demand for their services in the present world.
Why is the healthcare industry more relevant today than ever?
With the advent of lethal Covid-19, the healthcare industry has emerged as the all-important industry of today. This life-saving business segment has become the dire need for tackling the pandemic and finding its cure. Hospitals, clinics, testing centres and labs are all in demand to handle this global health crisis. All the allied healthcare industries too are seeing big business.
Pharmaceutical industries are working on the double to concoct preliminary anti-COVID drugs like hydroxychloroquine. Masks, hoods and sanitizers are being mass-produced and are always found wanting. Ventilators and surgical equipment needs have spiked enormously in recent months. There is a dire need for more trained medical personnel throughout the world. There is a shortage of doctors, nurses, attendants, ward boys, etc. Ambulances and stretchers are just not enough to meet the growing needs.
All this has heightened the demand for healthcare and its allied services. Healthcare industry is seen as a priority segment more for its service-oriented objectives rather than its financial outcomes today.
The above factors have made healthcare a flourishing business augmenting the growth of many start-ups and healthcare chains. With healthcare becoming more streamlined, its demand is growing in the rural and suburban areas as well. Personalized healthcare and 24×7 facilities will make this industry become more customer-centric and profitable in the coming years. More demand is expected at the corporate level for healthcare to meet the business needs through mergers, tie-ups and acquisitions.
Indian healthcare is truly growing
Indian healthcare is expected to reach $372 billion by 2022. Hospitals are expected to grow at a 16% CAGR and touch $8 trillion by 2022. The merger and acquisition deals in the hospital segment have escalated by a record-breaking155% to touch $1.09 billion in 2019. the Government of India has increased its spending on the healthcare from 1.2% to 1.4% in 2018. The number of doctors in India has increased substantially from 827,006 in 2010 to 1,154,866 in 2018.
All these factors just confirm the fact that the healthcare industry will remain up and running not only today but for years to come.
