The Health Care Sector

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ANOTHER SUNRISE SECTOR !

• Or
• ! The sunrise sector !

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The Economy

• Economic Reforms since 90s -
• focused on
• Liberalization
• Globalization
• Privatization
• Economy Shifted from
• Socialist command to capitalist market
• Since 2005 FDI stake
  

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The Economy

• 100 FDI allowed in
• Housing
• Commercial enterprises
• Hospitals
• Educational Institutions
• City regional level infrastructure

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The Economy

• 100 FDI allowed in
• Housing
• Commercial enterprises
• Hospitals
• Educational Institutions
• City regional level infrastructure

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The effects

• GDP
• 2005
• 604 billion
• Accounting for 6.3 share of world income
• Fourth largest in terms of real GDP
• 2010
• 929 billion
• BUT

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The Effect

• 2008
• GDP crossed 1 trillion
• FORECAST
• Gdp Growth at 7 7.5
• 27 TRILLION BY 2050

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Barriers to Growth

• Inflation
• Global Recession
• Resource crunch
• Environmental effects
• Improper utilization
• Diminishing returns to capital ( i.e. a point
  when increase in capital will not result in
  economic growth) steady state

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The Solution !

• Overcome steady state and continue growing by
  inventing new technology and/ or new capital.
• HOW ?

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BUT FIRST !
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The health sector

• Contribution of health sector to Indian Economy
  -
• Highest year on year growth of 42 in earnings
  (2007) due to
• Availability of high quality care
• Rise in number of patients visiting India
• One of the largest service industries employing gt
  4 million workers

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The health sector

• Health care spending will double in next 10 years
• Private health care spending - 15 billion
• 34 billion by 2012
• 42 billion if health
  insurance made available to rich and middle class
• Voluntary health insurance market( 2.8 billion)
  growing at 30 p.a.

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The health sector

• With expected rise in pharma, insurance medical
  devices market, the total health care market will
  rise from -
• Rs 1030 (22.2) billion ( 5.2 of GDP)
• To
• Rs 2320 3200 ( 50-90) billion (6.2 8.5 of
  GDP) by 2012

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The Barriers

• Too many Health s
• Lack of Resources
• Trained Manpower shortage
• Political interference
• Corruption
• Poor Infrastructure

• Inequity in accessibility
• Lack of health education
• Impractical Planning
• Lack of valid data
• Wrong Focus/priorities
• Social Cultural Barriers

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The Barriers

• Too many Health s
• Lack of Resources
• Lack of health education
• Political interference
• Corruption
• Poor Infrastructure

• Inequity in accessibility
• Trained Manpower shortage
• Impractical Planning
• Lack of valid data
• Wrong Focus/priorities
• Social Cultural Barriers

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The Solution !

• Education Training

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Determinants of Economic Growth

• Quantum of labor force (LABOR CAPITAL)
• Stock of physical capital
• Technological changes embodied in capital goods
• Quality of labor force
• Extent of education
• Level of health

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The emerging skill shortage

• POSITIVES

• NEGATIVES

• FAVORABLE DEMOGRAPHIC PROFILE MANPOWER
  AVAILABILITY, CAPABILITY TO LEARN
• KNOWLEDGE SERVICE SECTOR EMERGED AS SIGNIFICANT
  GROWTH ENGINE
• INDIAS EARLY LEAD STRONG FUNDAMENTALS
• IT-ITES SERVICES ALONE NEED 1000,000 PERS BY 2012

• SHORTAGES IN TALENT SUPPLY
• ONLY 10 OF GLOBAL MARKET POTENTIAL TAPPED
• 500,000 SHORT FALL IN SKILLED PERS BY 2010
• WILL LOSE US 86 BILLION WITH PRESENT CAPABILITY

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EDUCATION

• GOVT RECOGNISES -
• THAT
• EDUCATION IS THE PATHWAY TO ECONOMIC SUCCESS
• NEED FOR SUPPORT TO UNIVERSITIES EDUCATIONAL
  INSTITUTES
• NEED FOR 1500 MORE UNIVERSITIES
• NEED FOR BETTER TEACHING STAFF AT ALL LEVELS WITH
  BETTER REWARDS ACCOUNTABILITY
• PUBLIC-PRIVATE PARTNERSHIP IN EDUCATION

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THE FUTURE OF EDUCATION

• Development progress in the field of education
  is inescapable if we are to effectively compete
  with powerful global economies Dr Manmohan
  Singh, PM, Goa University Convocation- Dec 2007,
• 11th Plan (2007-12) Education centric plan
• 19 of GDP for growth of the education sector
• The new sunrise sector !!!!!!!

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The Immediate Need

• Management of the health care verticals
• By professionally trained health care managers
• With primary managerial competencies and
• Thorough understanding of health care issues
• CAPACITY
  BUILDING

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The sunrise sector

• CAPACITY BUILDING
• FOR THE HEALTH CARE SECTORS DEMAND FOR
• MANAGEMENT PROFESSIONALS

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The Health Care Matrix
NGO
PVT HOSP
GOVT
PVT HOSP
CORPORATES
NGO
INSURANCE
GOVT
MANUFACTURING
CORPORATES
INSURANCE
MANUFACTURING
PHARMA
IT
CR
PHARMA
IT
CR
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What brings it together?
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SCIENTIA POTENTIA EST
Sir Francis Bacon 1597 Meditatione Sacrae
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The Conclusions

• Health care sector education are the major
  drivers of the economy
• For the present growth to be sustainable over a
  period of time demands capacity building
• The indegenous attiudes, practices procedures
  developed must be locally implementable and
  globally acceptable
• Academia industry co-operation inescapable

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Some thoughts

• Our progress as a nation can be no swifter than
  our progress in education. The human mind is our
  fundamental resource.
• A teacher affects eternity he can never tell
  where his influence stops

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Thank you