Jayata Sharma | 29 December, 2008 | 10:40 AM
According to FeedBack Ventures, a consultancy firm, India will have to invest about Rs. 60,000 crore
According to FeedBack Ventures, a consultancy firm, India will have to invest about Rs. 60,000 crore over the next five years to meet demands in the healthcare sector
According
to
FeedBack
Ventures,
a
consultancy
firm,
India
will
have
to
invest
about
Rs.
60,000
crore
over
the
next
five
years
to
meet
demands
in
the
healthcare
sector.
Monika
Sood,
President,
FeedBack
Ventures,
said,
“Currently,
there
are
1.5
beds
available
for
every
1,000
people
in
India,
while
the
global
average
stands
at
3.3
beds
per
1,000
persons.
An
investment
of
Rs.
40,000
crore
to
Rs.
60,000
crore
will
be
required
over
the
next
five
years
to
maintain
the
Indian
average
looking
at
the
population
growth.”
She
said
that
about
80
per
cent
of
the
required
funds
are
expected
to
come
from
private
sector
as
government
alone
cannot
meet
it,
adding
India
required
an
addition
of
30,000
beds
annually
to
maintain
the
current
average.
The
study
stated
that
high
gestation
period
of
operating
a
hospital
and
making
profits
make
the
sector
difficult
for
private
equity.
So,
short-term
investors
are
not
interested
in
such
ventures
as
it
takes
at
least
3-4
years
to
gain
profit.
The
cost
of
equipment
upgradation,
especially
for
tertiary
hospitals
is
high.
However,
number
of
private
players
are
coming
up
in
the
healthcare
sector,
either
independently
or
through
private
public
partnership
model.
In
the
backdrop
of
recent
recession,
Sood
said,
“Recession
had
definitely
made
an
impact
as
far
as
investments
are
concerned.
But,
the
sector
is
looking
good
as
healthcare
is
something
not
easily
affected
by.”
Add your comments to this article.