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 … more


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 the 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 the 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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