Indian healthcare needs Rs. 60,000 - Modern Medicare

Indian healthcare needs Rs 60000

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.”

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