Essays24.com - Term Papers and Free Essays
Search

Microeconomic Analysis of Indian Medical Industry

Essay by   •  August 5, 2016  •  Term Paper  •  1,983 Words (8 Pages)  •  1,115 Views

Essay Preview: Microeconomic Analysis of Indian Medical Industry

Report this essay
Page 1 of 8

 SPECIALITY HOSPITALS
                                      IN
                   INDIA

         A monopolistic competition

                         
                         
[pic 1]





 

                                    INDEX

[pic 2]

TITLE

PAGE NO

  1. Executive Summary of Industry

       3  

  1. Market Structure Characteristics: Number of Sellers

       5

  1. Market Structure Characteristics: Entry and Exit Barriers

       6

  1. Market Structure Characteristics: Differentiated Products

       6

  1. Market Structure Characteristics: Pricing

       7

  1. Short-Run and Long-Run Equilibrium

       8

  1. Market Structure: Efficiency

       8

  1. Conclusion

       9

  1. References

      10



1. EXECUTIVE SUMMARY OF INDUSTRY

Indian healthcare sector, one of the fastest growing industry, is expected to advance at a CAGR of 22.87 per cent during 2015-20 to reach USD280 billion. There is immense scope for enhancing healthcare services penetration in India, this presents ample opportunity for development of the healthcare industry. An overview of certain segments of speciality hospitals is as follows:

Speciality Hospitals - Eye Care 

The eye care market in India will grow to approximately 1 billion USD soon. The main growth driver here are the increase in the disposable income level of the people and an ever increasing health awareness amongst the middleclass. Some of the major players that deal only in Eye Care are:

Sankara Nethralaya: Established in 1978, Sankara Nethralaya has established itself as the pioneer in the field of Eye Care and research. With over 9 branches across the country the hospitals also serves International patients from UK, US and several developed countries. It serves more than 1200 OPDs every day and performs over a 100 surgeries per day. It was described as the “Best managed charitable organisation in India” by Nani A Palkiwala.

Vasan Eye care: Speciality Eye care unit of Vasan Healthcare (1947). Vasan Eye Care came into existence in 2002 with its first eye care unit opened up in Trichy. By 2008 Vasan Eye Care was the largest Eye care speciality hospital in India. As of now Vasan Eye care has more than 175 eye care units across the country.

Speciality Hospitals - Cardiac 

Heart Diseases account for the most number of deaths in India. According to a recent study Heart diseases have replaced communicable diseases as the cause for most deaths in India. At this point the need of speciality heart hospitals was the most required as India always suffered from the loss of good dedicated heart hospitals. Some of the major players in the Cardiac Care segment are:

Fortis Escorts Heart Institute and Research Centre: Awarded as the Best Single Specialty Hospital – Cardiology this hospital in New Delhi has a Guinness World Record for conducting 14,161 preventive cholesterol tests in a single day.

Asian Heart Institute: Located in Mumbai, this hospital offers a host of treatments and conducts various intensive surgeries to prevent heart failure. The best part about this hospital is that they offer treatment at is 10-15 per cent cheaper compared to other hospitals. Besides being economic, the Asian Heart Institute has won the tag as the ‘safest cardiac hospital in the world’ with lowest mortality. This has been pronounced by the Joint Commission International (JCI), an international healthcare organisation. 

Speciality Hospital – Oncology

With rising cancer cases in the country, the oncology market in India is growing at 20 per cent annually and is expected to touch Rs.3,831 crore by 2017, according to a recent study. "Chemotherapy, biologics, targeted therapy, hormonal therapy, and supportive care are the different types of available cancer treatment in India. Among this chemotherapy recorded the highest market value of approximately Rs.800 crore in 2014. The best speciality hospitals dealing in this segment are:

Tata Memorial Hospital: The Tata Memorial hospital in Mumbai is one of the best cancer hospitals in India. It is well known for the radiology and the chemotherapy treatment to its patients. It is also well known for having the advanced centre for treatment, research and the education. This hospital provides the free treatment to nearly 70% of the patients. The radiological technologies that are used here are ultrasound, MRI and the CT scanners.

Apollo cancer hospital Chennai: The one of the best cancer hospital in South India is the Apollo hospital, this provides the best sophisticated and the world class facilities for the cancer patients. Has good modern amenities and provides the good stay for the patients. It has the best oncologist in the country that provides the effective medication as well as the faster recovery to the patients. Nearly 150 blood and the bone marrow transplants are performed here till date by the famous surgeons in the Apollo cancer hospital in Chennai.

Per capita healthcare expenditure is estimated at a CAGR of 11.3 per cent during 2008–15E to USD91 Billion by 2015.

    Source: World Bank, BMI Report, TechSci Research Notes: E - Estimates; 2015E - Estimates for 2015 (by BMI)
    [pic 3][pic 4]

     

2. MARKET STRUCTURE CHARACTERISTICS: NUMBER OF SELLERS

Within the healthcare industry lies a niche market of speciality hospitals. The big leaders of healthcare industry initially ventured into their respective speciality hospitals catering to life-threatening diseases of cancer, heart, brain tumor, etc. Some new players entered with their proposition of speciality healthcare and established their own niche market within the already niche market. This led to a very fragmented market wherein multiple sellers/companies ended up having a small and almost equal market share of the total market as depicted below.

...

...

Download as:   txt (12 Kb)   pdf (403.4 Kb)   docx (422.9 Kb)  
Continue for 7 more pages »
Only available on Essays24.com
Citation Generator

(2016, 08). Microeconomic Analysis of Indian Medical Industry. Essays24.com. Retrieved 08, 2016, from https://www.essays24.com/essay/Microeconomic-Analysis-of-Indian-Medical-Industry/69931.html

"Microeconomic Analysis of Indian Medical Industry" Essays24.com. 08 2016. 2016. 08 2016 <https://www.essays24.com/essay/Microeconomic-Analysis-of-Indian-Medical-Industry/69931.html>.

"Microeconomic Analysis of Indian Medical Industry." Essays24.com. Essays24.com, 08 2016. Web. 08 2016. <https://www.essays24.com/essay/Microeconomic-Analysis-of-Indian-Medical-Industry/69931.html>.

"Microeconomic Analysis of Indian Medical Industry." Essays24.com. 08, 2016. Accessed 08, 2016. https://www.essays24.com/essay/Microeconomic-Analysis-of-Indian-Medical-Industry/69931.html.