Demand for health care management professionals to grow 10 fold by 2020
As per the draft National Health Policy 2015, current health care segment in private sector stands at USD 40 billion and it is expected that the number would grow to USD 280 billion by 2020. A lions share would be in the hospital segment, as the health care is becoming corporatized. Thus, healthcare services are considered to be the value added services for the modified life style of the new generation, patients are given utmost importance as consumers. While doctors and care givers remain at the center stage of the health care services, consumerization in the healthcare business is growing with significant use of management principles. Value creation has to happen in each encounter of healthcare consumers with the healthcare providers, else the expansion of healthcare industry would be limited and remain as a sought after curative service. Apart from issues like patient safety, quality of care, management issues like consumer satisfaction, availing services at the most easy and convenient way, sufficient awareness, effective utilization of IT products for the patient benefit, provision of disintegrated and integrated healthcare services etc. are becoming the matter of concern for running medium and large scale hospitals and other health care organization. Therefore, the demand for health care management professional is bound to grow in coming years in India. Currently there is a requirement of around 10,000 health and hospital management professionals in India and I can foresee the number would be pegged at 100,000 by the year 2020. Let me put together seven reasons why the numbers would see a 10 fold rise by 2020.
Growing burden of life style diseases:
India, to a greater extent has won the battle against the communicable and infectious diseases, but still having a sizable burden of such diseases. The burden of life style diseases would grow from 50% in 2011 to around 81% in 2020. If we take two common life style diseases into consideration e.g diabetes and hypertension, currently we have 65 million diabetes patients and approximately 180 million hypertension patients. This numbers are expected to grow by 50% in next 5 years.
Growing investment in Health and hospital from private sector:
With a growing requirement of additional 600,000 to 700,000 beds in next five years, the private sector is poised to grow at a CAGR of more than 40%. The growth of the sector would also bring the implementation of quality platform like NABH to ensure patient safety. This would drive the growing need of health and hospital management professionals.
Growing number of Public Private Partnership projects in Healthcare:
Growing concerns of quality and effective healthcare has resulted in the growth of Public Private partnership (PPP) projects in healthcare. Since provision of healthcare is the primary responsibility of the state, PPP platform provide an unique solution with high level of commitment from private players with financial support from government.
Growth of technology usage in healthcare industry:
In the service sector, the benefit of Information Technology (IT) could be the biggest in the health care sector after financial services and education sector. Telemedicine is growing faster in India; the telemedicine market in India could grow from USD 7.5 million to around USD 20 million in 2017. In the primary health care also, IT is expected to play a major role in improving the diagnosis rate for life style diseases and the capacity building among the huge pool of health care providers including more than 33000 doctors in PHC/CHCs, 2,07,686 female health workers and 52,215 male health workers. Health IT product implementation and sustainability being the major challenge, a pool of healthcare management professional with strong training in health information technology would be required in the years to come.
Fast Growing Health Insurance sector:
India is second country after Russia to have maximum percentage of Out of Pocket (OOP) expense for healthcare. With around 85% of the OOP and growth of the hospital sector, the volume of the health insurance is bound to grow.
Growing Avenues for Medical Tourism:
Presence of wide network of Indians across the globe, affordable and high quality medical care has made India as a sought after destination for medical tourism. The medical tourism market is around USD 2 billion per annum and in next 4 years we may see the market would be more than USD 4 billion per annum. This would push the requirement of management professionals.
India is becoming a land of growing older population:
With positive GDP growth along with high per capita income and 67 million of has created an opportunity for market growth in home care segment. The growth of old age population would reach around 100 million by 2020 and so also the demand for home care. A spurt in home care would see a growth in demand for healthcare management professional.
The writer is Dr Biranchi N Jena, Director, IIHMR, Bengaluru