Private Equity’s Role in Tackling Global Healthcare Inequalities

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  Healthcare inequalities remain a pressing issue worldwide, especially in developing economies like India, where access to quality care is often limited. Private equity firms are emerging as key players in addressing these disparities by providing much-needed capital, fostering innovation, and driving efficiency in healthcare delivery systems. With strategic investments in hospitals, diagnostic centers, telemedicine platforms, and pharmaceutical companies , private equity investment in India like those offered by Quadria Capital is helping bridge the healthcare gap, bringing hope to underserved communities. Understanding Global Healthcare Inequalities Many factors drive inequalities in healthcare, economic disparities, inadequate infrastructure, and a shortage of skilled professionals, to name a few. Moreover, you can find an uneven distribution of healthcare facilities between urban and rural areas and an insufficient focus on preventive care and public health. These challen...

Private Equity Investment in Healthcare: Is It a Viable Option?

Healthcare is one of the largest sectors in India, with a market size of $194 billion in 2020. The Indian healthcare sector, which is supposed to reach $372 billion by 2022, is growing fast due to increasing coverage, the extent of services, expenditure by public and private players, and the growing demand for quality healthcare. Services offered by the Indian healthcare sector are cost-competitive compared to their counterparts in developed nations.

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The public healthcare system in India comprises primary and secondary centers. India’s private healthcare sector is witnessing rapid growth due to the availability of quality treatment compared to public healthcare services. The low spending in public healthcare has made the private sector fill the gap in healthcare services. Sensing the need for substantial investment in healthcare, the government laid down policies to attract private equity firms in the Indian healthcare sector.

Substantial growth in demand for quality healthcare and lack of funds to deliver it by expanding facilities, buying equipment, etc., obliges sourcing the funds through PE investments. PE investors are attracted to invest in Indian hospitals. Factors that contribute to private equity investment in the Indian healthcare sector are:

·         Opportunity to generate higher returns while improving portfolio diversification

·         Having a significant controlling stake

·         High patient footfalls in the target hospitals

·         Potential to expand hospital networks into smaller cities

Private equity investments in hospitals and other healthcare services, especially medical device manufacturers, medical diagnostics companies, and e-Health set-ups, result in significant value addition for private equity firms in India. One visible positive impact of these investments is the creation of the required infrastructure. Apart from helping increase physical capacity in the healthcare sector, private equity investment can also help raise the standards and quality of healthcare services and create employment opportunities, benefiting the healthcare sector and the economy.

Overall, private equity investments are a significant boost to the healthcare sector. Apart from providing efficiency, cost-effectiveness, and well-grounded patient services, top private equity firms in India are transforming the healthcare industry.

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