HumaQuest

Healthcare Delivery and Hospitals

The healthcare market is estimated to reach $ 372 billion by 2022, states the IBEF report. Ministry of Health & Family Welfare is planning to further enhance its healthcare budget to 2.5% of GDP by 2025. The Indian Government has also developed a Sustainable Development Goals (SDG) targeted to be achieved by 2030.This is an attempt to ensure health, end poverty and ensure prosperity and peace for the people. As part of this agenda, one of the SDGs focuses strongly on health. It aims to promote the healthy living and well-being for people of all age groups by eradicating all forms of malnutrition and achieving universal access to safe drinking water, hygiene and sanitation. According to the market researchers, the various prospects are portrayed-

	Current State	Future State
Health care systems	Revolving around academic medical centers (AMCs) and large hospitals	Academic health systems that focus on the community and the continuum of care
	Soloed large academic medical centers in a spoke-and-hub model	Integrated delivery networks
		Care pushed out to home — both acute (hospital at home) as well as chronic care management
	Most surgery performed at AMCs	Surgery performed at community surgical centers
	Most care within hospital walls	Hospitals will provide most care remotely rather than on site
	Focus on cure (and maybe rehabilitation)	Focus on prediction and prevention
Payment systems	Pay per specific transaction (fee-for-service)	Pay by quality / outcomes
		Bundle services around an episode (bundled payment)
		Payment per population (such as accountable care organizations)
Sustainability of health services	Managed care; early attempts at value-based payments	Emphasis on prevention of disease
		Precision medicine
		Increasing role of artificial intelligence in decision-making
Care providers	Physician-driven care	Increasing role specialization
		Focus on multidisciplinary clinical teams
		Diminishing focus on physicians
Partnerships in health care	Provider organizations, health insurance, pharma, and med tech industry	Nonmedical tech giants (e.g., Google, Apple, Amazon, Microsoft)
		Education and social care providers
		Retail corporations and pharmacy chains (e.g.., Walmart, CVS, Walgreens)
		Service provider industry (e.g., Uber, healthy food chains)

India's healthcare sector is on the cusp of rapid growth, rising income level, greater health awareness and improved access to insurance are the key contributors. The private sector has emerged as a vibrant force in India's healthcare industry, lending it both national and international repute and it accounts for almost 74 per cent of the country’s total healthcare expenditure. Further, the presence of world-class hospitals and skilled medical professionals has strengthened India’s position as a preferred destination for medical tourism.

Challenges that need to be addressed in hospital industry-

There are three challenges for India in terms of the healthcare sector.

The first is to bring the best healthcare not for the few but for many.
The second is to address the imbalance between the urban areas and rural areas.
The third is to make sure that enough doctors, nurses and healthcare professionals are present so that all the citizens in India can receive a high-quality standard of care.

Skill gap in the healthcare scenario

There will be a shortage of 18 million health workers till 2030, which is around 20 percent of the total capacity. In India, there is four million shortage of health workers till the time the universal healthcare program for poor people in India will be launched. In India, only 3 -4 % of GDP is spent on healthcare, while other countries spent much more than that.

A new report by consulting firm Bain & Company says that demand for healthcare services will exceed supply in the next decade as 140 million Indian households enter the middle-income group. The incremental consumption is expected to double healthcare spending by 2030. The report titled ‘India Life Sciences Report 2019’, which was done in collaboration with the Confederation of Indian Industry (CII) was the result of a study conducted among 325 doctors.

The report concluded that doctors today are challenged with a rapid increase in the volume of patients and complexity as they are restrained by cost and quality considerations. To meet these challenges, life sciences companies must revamp their commercial and operating models to safeguard future profitability, according to the report.

Market Scenario and growth rate by 2030

The Indian healthcare market is expected to reach 24lacs cr by 2022 from 9lakh cr in 2016. Indian hospital sector growth is increasing rapidly every year and expected to 8.6 lakh cr in 2022 from 7.38 lakh cr. The number of hospitals is also more in India (74%) than government hospitals (26%).

By 2030, lower-income households will drop to 57 million; there will be 132 million lower-middle-income households, 168 million upper-middle-income households, and 29 million high-income households. While lower-income households were the dominant group in 2018, upper-middle-incomes households will be the biggest audience in 2030. Regulatory oversight to control and reduce prices of drugs and infrastructure bottlenecks are the macro constraints for growth.

The hospital industry in India, accounting for 80% of the total healthcare market, is witnessing a huge investor demand from both global as well as domestic investors. The hospital industry is expected to reach $132 bn by 2023 from $61.8 bn in 2017; growing at a CAGR of 16-17%. Expressing readiness to work together with Australia in healthcare, India's Health and Family Welfare Minister said that in India this sector is expected to achieve the $275 billion mark by 2030. In a digital interaction with Australian counterpart,he noted that "while Australia has one of the best healthcare systems of the developed world, healthcare in India is one of the fastest-growing sectors expected to hit a $275 billion mark in the next 10 years".

Top players in healthcare delivery and hospitals in India-

1. Apollo hospitals
2. Fortis healthcare
3. Manipal healthcare
4. Max healthcare
5. Columbia Asia hospitals
6. Care hospital group
7. Kovai medical centre and hospital
8. Vatsalya healthcare
9. KMC speciality hospital
10. Narayana health
11. Wockhardt hospitals
12. Global hospitals
13. KIMS hospitals
14. Aster dm healthcare
15. Mewar hospital
16. Sterling hospital
17. Seven hills healthcare
18. VPS healthcare
19. Shalby hospitals

Graph portraying the growth rate in hospital segment in future

Significance of Human Resource in hospital industry-

WHO estimates a projected shortfall of 18 million health workers by 2030, mostly in low- and lower-middle income countries? However, countries at all levels of socioeconomic development face, to varying degrees, difficulties in the education, employment, deployment, retention, and performance of their workforce.

Human resources for health (HRH) are a core building block of health systems. Investment in health workforce is a driver of progress towards several Sustainable Development Goals (SDGs). This aligns with the Global Strategy on Human resources for Health: Workforce 2030 Report, which notes that adequate investment in health workforce along with availability, accessibility, acceptability and coverage leads to overall social and economic development along with improvements in population health. A well trained and competent workforce is essential to any successful healthcare system. It has been observed that in the developing countries, healthcare workers are often underpaid, poorly motivated and very dissatisfied, hence migration of the workforce is an important issue, which can be suitably addressed only by a well-developed Human Resource Management (HRM) body within the industry. With the emerging blooming and transition in Healthcare Industry, HR sector adapts the latest methods to compete and sustain in the competitive healthcare sectors.

The role of HRM also extends to monitor the rules & regulations governing the Health care system in relation to its employees.
For delivering quality healthcare, identifying the root cause of errors, strategies to reduce chance of further errors, the gap analysis, incorporating appropriate available skills to close the gap,
Diversifying the work among the available team, employing quality improvement methodologies to form an interdisciplinary team for better resource.