The challenge for the Indian healthcare industry in next few years is to take healthcare services to semi urban and rural areas, according to Malvinder Singh, chairman, Fortis Group and Parkway Holdings.
Speaking at the Pharmaceutical Leadership Summit-2010, Singh said the private sector will have to provide healthcare services to people in Tier-1 and Tier-2 cities at lower prices than Tier-1 cities.
“The healthcare industry needs to create the infrastructure at different price point. It cannot be done at the same price that you have in Tier 1 city. It’s going to be substantially lower in terms of price point.”
According to Singh,this can be done by being innovative and attaining large volumes. “To lower prices, you need very large volume to be able to capitalise on that infrastructure, otherwise the economics will not justify the investments.”
Healthcare delivery should be handed over to the private sector in a phased manner, Singh said. “Going ahead, I would like to see the government as a regulator and as an insurance healthcare provider. Healthcare delivery should be left for the private system.”