Health Care Sector Maintains a Steady Pulse

At a time when small units in most industry verticals are struggling to stay afloat, the SME’s in the health care sector in India have managed to grow substantially.

Despite the hostile economic conditions, small and mid-sized health care centres and diagnostic firms in the country have recorded a steady growth in the last year. This upward trend is likely to continue this year as well, with small health care companies expecting to achieve higher growth levels than the previous year.

The growth pills

The robust demand for good health care facilities, rise in spending on better diagnostic amenities and the increased usage of new technologies is likely to fuel the growth of SME’s in the health care sector. Industry experts project the small health care firms to register a compound annual growth rate (CAGR) of 20% to 30% in the next couple of years.

“Rise in income levels in the country will propel the demand for better healthcare services. Moreover, growing requirement for primary and secondary healthcare facilities at all levels will drive the growth of SME’s in the health care and diagnostic equipment manufacturing sector,” said G Banerjee, Head of Cancer Unit, Suraksha Diagnostic in Kolkata.

The per capita health care expenses in India have grown considerably over the past few years and it will continue to increase substantially even in future. Currently, the state and central government in India spend only 0.9% of the country’s gross domestic product (GDP) on healthcare. However, the Planning Commission had hiked this figure to 2% in the 11th Five Year Plan (2007-12).

“The demand for tertiary care is also expected to grow substantially in line with the increase in complex ailments such as heart diseases and cancer. As healthcare spending rises, lucrative opportunities would open up for SME’s in the health care industry,” said Sangeet Kumar, Proprietor and Head of a health care centre in Ranchi, Modern Diagnostics.

Need of the hour

However, despite the projected growth, there is a need for the small and mid-sized health care companies to upgrade their capacities in order to meet the anticipated demand, which far exceeds the existing supply.

It is imperative for the government to devise policies and launch skill development programmes to overcome manpower shortages in the sector. Technological upgradation of small health care units will also help them serve the society better.