The global healthcare companies at present are looking forward to some fundamental changes in the global market and to locate and innovate new ways to enhance growth. Under such circumstances, it is hard to ignore India as a country with healthcare as the most significant employment as well as revenue generation sector. With the changing epidemiological profile of India, there has been a considerable increase in the demand for drugs required to cure cardio-vascular problems, chronic diseases and problems associated with the central nervous system making India a potential market for most of the global pharmaceutical manufacturers and a great opportunity for top healthcare consulting firms.
What makes India an essential player in the global healthcare industry?
India is one of the third most active investment destinations for companies all around the globe. Therefore, it is uncommon to find global companies seeking for Mergers and Acquisition firms in India. Healthcare is an essential sector with substantial growth prospects in future. There are many healthcare consulting firms set up to simplify the entry of global companies into the Indian healthcare sector.
• The growing rate of life expectancy, increasing population, and growth in urbanization has enhanced the demands for healthcare services in India.
• India 21 percent of diseases burden globally as the country is home to 17 percent of the world’s population. The country is dealing with a massive burden of both communicable and non-communicable diseases.
• The emerging middle-class income segment has led to an increase in stronger domestic growth which further adds up. It affects the private consumption of healthcare from 5 percent to 7.5 percent by the end of this decade.
• The growth in health insurance penetration has led to 18 percent increase in the health insurance market.
• The Indian healthcare sector is no wonder an attractive investment destination for Private equity firms (PE) and Venture capital firms (VC) giving much business to healthcare consulting firms. The Indian life sciences and healthcare second has emerged glorious and have shown considerable investments in this spectrum
• The Medical value travel is at its peak in India with an expectation to reach $10.3 billion by 2020 due to the availability of quality care at an affordable price. India is majorly known for its hip resurfacing and heart surgery.
• There are opportunities available in all the formats of the healthcare sector (be it primary care, secondary or tertiary).
What is the best way in which Mergers and Acquisition firms in India operate in the healthcare sector?
The Mergers and Acquisition firm help in resolving the reimbursement issues of as well as the much technology and compliance issues in the healthcare sector. It also helps in becoming an avenue for revenue and market share growth. Mergers and Acquisition firms in India can help you reach global companies target the right health care provider for merger and acquisition in the following manner.
• Small healthcare providers / individual practitioners/medical service vendors can be acquired by doing considerable research into seller’s geography, mission statement and the continuum of care.
• Large healthcare providers and Accountable Care Organizations (ACOs) focus on the measured approaches of acquisition. Here global companies should consider the local demographics, the disease profiles, continuum of care as well as the culture.
References:
https://www.pwc.com/gx/en/healthcare/pdf/global-top-health-industry-issues-2018-pwc.pdf
https://www.pwc.com/gx/en/pharma-life-sciences/pdf/global-pharma-looks-to-india-final.pdf
https://www.ibef.org/industry/healthcare-india.aspx
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