Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities

Factors That Are Affecting The Healthcare Industry in India

The Healthcare Industry Size Is Expected To Reach USD 280 Billion By 2020

By Content Writer
Factors That Are Affecting The Healthcare Industry in India

The Private healthcare sector is undergoing a metamorphosis by broadening the focus of its services using technology, deliverables, and newer applications. Hospitals that were confined to a specified area with limited infrastructure and services are now expanding, mainly due to the foreign investment being received by the sector. Here are some of the factors are affecting the healthcare industry.

Consolidation of hospitals

The increase in lifestyle-related diseases and an expanding middle class have led to a growing demand for quality healthcare services over the years.

India’s healthcare infrastructure has been unable to keep pace with the demand. This led to creating a huge void in demand and supply of quality health care services and a growing capital demand due to an increase in operational costs and technology acquisitions.

Thereby pushing healthcare service providers to expand inorganically by merging with competitors or by accepting large capital injections.  Last year, Fortis Healthcare Ltd. accepted the proposal from Malaysia’s IHH Healthcare Berhad to invest INR 4,000 crores in the Indian Hospital Chain.

Debt funding

Debt finance is a major source of capital for the private healthcare industry. Doctors are now inclining majorly towards debt funding. The borrower must offer primary security and collateral security before securing a loan. Primary security is usually provided in the form of a charge over the asset against which the loan is taken and collateral security is usually given in form of a personal guarantee.

The requirement to offer collateral in the form of a personal guarantee is the biggest consideration for promoters of small and medium scale hospitals while accepting debt which, many times, hinders expansion. Many new healthcare services are emerging quickly and are looking for funding.

Emerging Tier 2 and Tier 3 cities

Recently there has been tremendous growth in secondary and tertiary care hospitals in Tier 2 and 3 cities. There are many reasons for this emerging trend. The per capita income of the people has increased significantly in the past few years, resulting in a significant increase in their capacity to pay for quality healthcare. A major factor is the willingness of doctors who have been practising for a long time and enjoying goodwill, to join hands to start big hospitals.

Another possible reason is reaching of saturation level due to an increase in the competition in Tier 1 cities, causing the serious players to explore opportunities outside these cities. Lower cost of availability of land, labour, electricity etc. has posed as an additional attraction of Tier 2 and 3 cities.

Related opportunities
  • Catering
    About Us: Established in 1989, Lajawab Culinary Art is a premium..
    Locations looking for expansion Delhi
    Establishment year 1989
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 6000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • About Us: In My Student days in Australia I worked as..
    Locations looking for expansion Telangana
    Establishment year 2014
    Franchising Launch Date 2017
    Investment size Rs. 20lac - 30lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Hyderabad Telangana
  • Quick Service Restaurants
    Looking for your own lucrative business in ever growing fast..
    Locations looking for expansion New Delhi
    Establishment year 2009
    Franchising Launch Date 2012
    Investment size Rs. 10lac - 20lac
    Space required 200 - 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Rajouri New Delhi
  • Souvenir Shops
    About Us: Established in Hong Kong, Coko is the brainchild of..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts