Factors Contributing Towards Growth Of Private Healthcare Sector
The private healthcare sector in India has always been known for its easier access to quality and reliable services. The growth is, however, owing to a number of factors that range from the consumer demand to the governmental support.
The increased use of technology has allowed healthcare services to reach millions with improved operational efficiency. The innovative business models and competitive environment has paved way for providing quality healthcare services in a cost-effective manner. The private sectors are consistently adopting new and advanced technologies to offer better quality healthcare services to the patients. Particularly, telemedicine has increased the accessibility of healthcare services in rural areas by creating a network of quality health service providers.
Rising Income and Healthcare Expenditure
Owing to the rising income levels, more and more consumers willingly demand access to quality healthcare facilities. Moreover, easy access to medical insurance has further contributed positively to the affordability of healthcare and related services. In addition, the current demographics of the increasing ageing population are also a major contributing factor to higher healthcare expenditure and growth of the private healthcare sector in India.
Public Awareness of Health
The current healthcare sector is seeing a shift from communicable diseases to lifestyle diseases. Today’s urbanization and problems associated with modern living have replaced traditional health problems with lifestyle diseases, which have further increased the demand for specialized healthcare services. This has heightened the current generation’s awareness towards personal health and hygiene, as well as precautionary treatments. As a result, all of these have led to improved diagnostic treatments, resulting in increased hospitalization.
In the past decades, the government has significantly contributed to the growth of the private sector. To add to the fact, the Indian Government had subsidized private sector organizations by providing low rates for hospital establishments and giving exemptions from taxes and duties for imported medical equipment and drugs.
Medical tourism in India is becoming a billion-dollar business. Everything from cosmetic and regenerative treatments to cardiac treatment and other serious ailments is being handled successfully by the Indian private healthcare sector. High-end technology, advanced medical facilities, professionally qualified healthcare providers and relatively low-cost treatments are the reasons for the international recognition and growth of medical tourism in India. It has also encouraged international accreditation and private health insurance, bringing further changes in the financing and regulations of private hospitals