PPP Model Providing Right Impetus to Diagnostic Industry
eHEALTH|February 2020
In any modern healthcare system, laboratory diagnostics play a crucial role for effective functioning of the overall care delivery system. Pathology and radiology have withnessed huge transformation in the last decade thanks to technological advancements and innovative practices. Elets News Network (ENN) explores all the aspects of the Indian diagnostic industry--huge underlying opportunity, challenges and how PPP models have driven the market.
PPP Model Providing Right Impetus to Diagnostic Industry

With the rapid growth of the Indian economy in recent times and the changing demography and socio-economic mix of the Indian population, there has been an immense change to the healthcare requirements in the country. Over the years, the public and private sectors have helped in addressing the health needs of the country, paving way for India’s progress on key health indicators like life expectancy and infant mortality. Diagnostics is one of the primers of the whole spectrum of healthcare delivery system, paving path for enriched healthcare experience to masses.

SIGNIFICANCE AND MARKET OF DIAGNOSTICS

Diagnosis is the first step to disease management, as without accurate identification there is no possibility for accurate treatment. India is a land full of opportunities for players in the diagnostic service industry. The country has become one of the major destinations for various diagnostic services.

The diagnostic market in India is around Rs 75000 crore market divided into two parts -- private and government. Out of this, pathology and radiology in private sector is about Rs 45000 crore and government sector is for about Rs 2700028000cr. 80% of Indian diagnostics is unorganized and if we look at the market share tier-wise then Tier 1 city has 40-50% share and remaining comes from tier 2 and tier 3 cities.

MANAGEMENT CHALLENGES

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