Healthcare Financing in India: A Quick Overview - Loan Trivia

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Thursday, 13 December 2018

Healthcare Financing in India: A Quick Overview


The healthcare industry in the country is one of the fastest growing sectors and it is expected to reach $280 billion by 2020. While, the hospital industry is forecasted to increase to Rs 8.6 trillion (US$ 132.84 billion) by FY22 from Rs. 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16% to 17%. In terms of revenue and employment the healthcare seem to be growing at a fast pace. At the same time offering value added services, wider coverage, increased expenditure by private and public players and so on.

Private Initiatives - 

The investment in this sector for hospital and diagnostic centers has attracted Foreign Direct Investment or FDI worth US$ 5.25 billion between April 2000 and June 2018 alone. While there have been significant investments in the sector. Fo instance, the demerger of Fortis Healthcare of its hospitals with Manipal Hospital Enterprises. Where, TPG and Dr. Dr. Ranjan Pal can invest Rs. 3,900 crore (US$ 602.41 million) in the Manipal medical facility has been greatly helping the sector.

Government Initiatives - 

Not just private, government initiatives such as the approval of Ayushman Bharat-National Health Protection Mission as a centrally Sponsored Scheme contributes to both the Center and the State government for every state. Moreover, the signing of Memorandum of Agreement (MoA) between the government and the World Health Organisation facilitates improved public health in the country.

Individual Initiatives - 

To avail the best of medical care people often pay from their own pockets or look for healthcare finance from leading players in the market. These initiatives support the out-of-pocket healthcare expenses. In addition, flexible spending accounts are provided by few employers as well to ensure timely medical care for the needy.

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