Mar, 2014     

Digital Healthcare – Next frontiers for demand


This document is an article which covers insights on the Indian Healthcare Industry.

Executive Summary

  • The healthcare market is exceeding global benchmarks in large Indian cities
  • As the opportunities saturate in large cities, healthcare chains are trying to figure out the next
    set of demand frontiers
  • There are 30 cities (Next-30) with 1 Mn+ population other than top-7 cities which constitute
    14% of Indian urban population
  • 'Next-30' cities have grown faster than 'Top-7' cities in the past decade but affordability is
    considerably lower
  • Digital healthcare awareness and Standard of Living are also lower compared to 'Top-7' cities
  • It is important to prioritize among 'Next-30' cities as their performance vary significantly on
    key indicators
  • RedSeer has classified 30 cities into 'Star Cities', 'Next-in-Line' and 'Laggards' based on their
    RedSeer HD-NFI rank (Healthcare Demand- Next Frontier Index)
  • Star cities perform significantly better than Next-in-Line and Laggards on all demand
    parameters

It is important to prioritize among 'Next-30' cities as their performance vary significantly on key indicators

Range of values for key indicators
Comparison between Top-7 and Next-30 cities

Parameters Next-30 cities(Range)
Population (L) 10-45
Population growth % (2001-2011) 6-831
Per capita income ('000 USD) 8-27
% upper and upper-middle class 2-7
Literacy Rate 57-85
High Standard of Living 20-66
Healthcare awareness indicators
Full Vaccination 25-92
Institutional Deliveries 25-97
Contraceptive usage 30-75

The healthcare market experiences better performance from star cities than Next-in-Line and Laggards on all demand parameters

Star Cities comparison with Next-in-Line and Laggards

Key Parameters Key points for Star Cities
Population
  • Star cities account for 49% of population in Next 30 cities
Population Growth
  • Star cities account for 49% of growth in Next 30 cities
Income
  • Star cities account for 44% of Upper and Upper Middle class in Next 30 cities
  • Per capita Income in Star cities (13,300 USD) is ~30% higher than
    Next-in-Line and 40% higher than Laggards
Healthcare Awareness
  • Star cities are 10-15 percent points higher than Next-in-Line and Laggards on Healthcare Awareness and Standard of Living
    parameters

Why RedSeer for an optimized Healthcare Business Model

Relevant Experience

  • More than 25 healthcare engagements across India and abroad
  • Actively working with 10+ clients in the healthcare ecosystem
    (including hospitals, investors and vendors)
  • Work on topics such as expansion, roll-outs and feasibility

Expert Network

  • Internal and external empanelled network of experts across
    specialty and market segments
  • Network of 5000+ experts across hospitals and healthcare
    equipment industry (including pharmaceuticals)

Database

  • Off-the-shelf database of hospital owners, decision makers
    and doctors across 3000+ hospitals in top-10 Indian cities
  • Key metrics covered such as single room fee, # of beds,
    facilities (diagnostics center, pharmacies etc)

Research Expertise

  • Research partner for 7 out of top-10 global consulting firms on engagements related to their Healthcare Business Model.
  • Best-in class research process for flexibility and timeliness
  • Unmatched expertise across 20+ languages

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