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...

Indian Healthcare: A Promising Sector For Private Equity Investment

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One of India's largest industries in terms of revenue and employment is the healthcare sector, which includes hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. Due to expanding services and coverage as well as rising expenditures by public and private equity investment players, the Indian healthcare sector is expanding quickly. India's large pool of well-trained medical professionals is what sets it apart from other Asian and Western nations in terms of cost.

Let's take a look at some of the key factors that make India's healthcare market a popular destination for private equity investment.

Rising Demand

India's Healthcare Market is expected to reach US$ 372 billion due to rising income, improved health awareness, lifestyle diseases, and expanding insurance access. The burden of new diseases and an expanding middle class are increasing the need for health insurance. Health insurance penetration is expected to rise in the coming years due to the rising demand for quality, affordable healthcare.

Government Initiative & Support

Some of the major initiatives that the Indian government has taken to promote the Indian healthcare industry are as follows:

In the Union Budget 2022-23:

  • Rs. 86,200.65 crore (US$ 11.28 billion) was allocated to the Ministry of Health and Family Welfare (MoHFW).
  • Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was allocated Rs. 10,000 crore (US$ 1.31 billion)
  • Human Resources for Health and Medical Education was allotted Rs. 7,500 crore (US$ 982.91 million).
  • National Health Mission was allotted Rs. 37,000 crore (US$ 4.84 billion).
  • Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) was allotted Rs. 6,412 crore (US$ 840.32 million).
  • The Government of India approved continuation of ‘National Health Mission’ with a budget of Rs. 37,000 crore (US$ 4.85 billion).
  • Rs. 5,156 crore (US$ 675.72 million) was allocated to the newly announced PM-ABHIM to strengthen India’s health infrastructure and improve the country’s primary, secondary and tertiary care services.
  • By the year 2025, the Indian government intends to spend 2.5% of the GDP on public health.

What's in Store?

There are numerous opportunities for players in the medical device industry in India. With significant capital investment in cutting-edge diagnostic facilities, the nation has also emerged as one of the most popular destinations for high-end diagnostic services, serving a larger segment of the population. In addition, Indian patients' awareness of their own health care has increased.

There are numerous opportunities in the highly diversified Indian healthcare sector. Additionally, India has a competitive advantage due to its higher success rate in obtaining ANDA approvals for its businesses. In addition, India provides numerous opportunities in research and development and medical tourism. In general, the Indian healthcare sector presents numerous investment opportunities for private equity investment in India.

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