Healthcare sector 2018-07-26

What's Influencing The Private Healthcare Industry

The Healthcare Industry Size Is Expected To Touch USD 160 Billion By 2017 And USD 280 Billion By 2020

By Content Writer
What's Influencing The Private Healthcare Industry

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 most emerging trends that are shaping up the private 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 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.  Recently, 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 a 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 a 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.

star franchise india
Related opportunities
  • Pharmacies
    “I Me Cosmo Store” has brought combination of PARA PHARMACY..
    Locations looking for expansion Karnataka
    Establishment year 2020
    Franchising Launch Date 2021
    Investment size Rs. 30lac - 50lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • About Kouzina Kouzina is a next generation cloud kitchen company with..
    Locations looking for expansion Karnataka
    Establishment year 2018
    Franchising Launch Date 2020
    Investment size Rs. 10lac - 20lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bangalore Karnataka
  • Tea And Coffee Chain
    About Us: We serve our tea the way Indians like best!! Freshly..
    Locations looking for expansion DELHI
    Establishment year 2008
    Franchising Launch Date 2009
    Investment size Rs. 10lac - 20lac
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater DELHI DELHI
  • Format Investment Brand Fee Space Staff Exp. Monthly Sales Profit Margin Royalty ..
    Locations looking for expansion Maharashtra
    Establishment year 2016
    Franchising Launch Date 2016
    Investment size Rs. 10lac - 20lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Haveli Maharashtra
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

ads ads ads ads