Address as the Session Chairman for Panel Discussion on the topic “Impact of Healthcare Globalization on Economy” at the 3rd International Healthcare Quality Conclave, 31st July, 2010
Good evening friends. I have an Interesting topic for discussion amongst my esteemed & learned panel of experts.
Let me introduce you the expert panel. I have with me, Mr. Rajiv Sharma, CEO, Sterling Hospitals, Dr Anupam Sibal, Group Medical Director, Apollo Hospitals, Mr. Sudhir Bahl, COO, IVEN Medicare India Ltd, Dr. Dharmendra Nagar, Managing Director, and Paras Hospitals
Coming to the topic, I have had a chance to be involved with a few healthcare systems across the world: The largest, over-funded and under-performing healthcare system – US Healthcare system, the government supported UAE healthcare system & the one that is under-funded and under-performing healthcare system – India
What will be the impact of healthcare globalization on the Economy? Firstly, why will the healthcare globalize? And when this happens, what impact will it have on our economy?
My understanding is that the healthcare in the US / Europe has already embraced the ‘Moment of truth’ – that both these systems are not sustainable in the current form. I believe that the solutions for the healthcare problems of the developed world lie in the developing world, and so, healthcare globalization is the only way forward! With private Indian healthcare organizations setting up world class facilities in India, a good number of Indian faculties are headed back home with better environments to work in their very own home country. This will lead to reverse migration.
Also, developed world is facing the problem of high cost and a long waiting period for major interventions. Certainly, Indian healthcare system offers solutions to fill in this need gap with an assurance of world class care. Adding to this is the healthcare insurance products being launched by some insurance companies in the US that will encourage the patients to travel overseas for treatment
Today, US healthcare system is a big talk everywhere as it is 17 % of its GDP. In India, a 1.2 Trillion USD economy, healthcare is 2.91 % of the GDP. This number of 2.91 % of the GDP is too low to impact the economy unless it becomes 2-3 times of its present number. One of the impacts of healthcare globalization will be that it will increase the healthcare’s share of GDP in India
Recently, we saw a major healthcare group in India bidding for a regional healthcare group. I can safely bet that the Wal-mart of healthcare will be from India
With Healthcare globalization, the healthcare will improve and impact the healthcare of the common man, and ultimately the productivity of our country’s work force will go up; thereby leading to a more vibrant economy
Overall, the impact of Healthcare globalization in our economy will be felt across sectors as Healthcare is a complex industry with the highest employment potential . Healthcare globalization will positively impact employment across sectors like manufacturing , R & D, tourism , textiles, hospitality , education , IT, Insurance , BPO , Telecom etc , and so one can easily understand the multiplier effect on the economy in India due to healthcare globalization
We have started the journey for globalization. India has the potential to set India class standards for the world rather than aping the world class standards for India. We have some great leaders in Healthcare like Dr.Syeda Hameed, and we are sure to reap the benefits that healthcare globalization brings to our economy
So if I were to sum up the impact of the healthcare globalization on our economy, it would:
a) Reverse brain drain in healthcare
b) Increase the share of healthcare as a percent of GDP
c) Create the Wal-mart of healthcare from India
d) Enhance the productivity of the workforce and make our economy more vibrant
e) Have a multiplier effect on many sectors of our economy
Thanks for patiently hearing me out. Now let me open the session to our expert’s panel