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Growing Health Care Industry and Technology Changes in Healthcare System

There are multiple factors which influence the growth of health care system. The growing incidence of lifestyle diseases, ageing population, rising demand of affordable health delivery system, and government initiatives are a few such factors.  It was further influenced by technological changes, and the tax benefits/ incentives in the health insurance.

Technology plays is going to change the overall scenario in the healthcare industry in the coming few years.  Artificial intelligence helps in keeping health records and provides best possible treatment to the patients at right time.  It also helps in guiding in selection of hospitals according to the diseases.  Internet of things helps in asset management and inventory tracking in the hospitals.  Many companies are also working in developing Robotics surgery which will reduce the error of margin in savior surgeries.

The healthcare industry comprises of hospitals, medical tourism, health insurance, telemedicine, clinical trials, pharmaceuticals, and diagnostics (imaging and pathology.  The hospital industry in India accounts to 80% of the total health industry.

The global health expenditure is increasing at a rate of 5.4% from 2017-2022, from $ 7.724 trillion to $10.05 trillion.  The emergence of personalized medicine increases the use of exponential technologies, the demand for expanded care delivery sites, and revamped payment and public funding models are all impacting the financial performance of the health care ecosystem.

The private sector has emerged as a vibrant force in the healthcare industry in India.  This sector accounts to almost 74% of the total health expenditure in India.  By 2020 India will become the top 3 health care market in terms of growth.  Health care has become the one of the largest sectors in terms of revenue and employment.  In 2017, the sector employed a total of 319,780 people in India.  According to market estimates, the hospital industry will reach $132 billion by 2023, from $61.8 billion in the year 2019 with growing at a CAGR of 17%.  The medical tourism in India is $3 billion in 2017.  The government has launched Ayushman Bharat National Health protection Mission, through this initiative the government will provide Rs5 lakh per family per year for secondary and tertiary care hospitalization, allocation of $887.04 for AB-NHPS under the union budget 2019-2020

The US healthcare spending in the US will reach $5.7 trillion in 2026, which is around 19% of the total US economy in 2016, according to the data published by Reuters.  The U.S. healthcare information technology (HCIT) market generated $61.01 billion in 2017, and is projected to reach $149.17 billion by 2025, growing at a CAGR of 11.7% from 2018 to 2025.

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