Hospital Information System Market in India

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1 Hospital Information System Market in India February 2015

2 Executive Summary Market Hospital Information System market in India was valued INR 7.6 bn in 2013 and is expected to reach INR 19.1 bn by 2018 There are numerous players in the market, both foreign and domestic Drivers & Challenges Drivers: Booming healthcare industry Growing medical tourism Growing health insurance market Need for database for recording medical cases Low HIS penetration Challenges: Low spending in IT infrastructure Lack of IT training in initial career stages Lack of awareness Trends Telemedicine Cloud Computing Government Initiatives Lacking of initiatives by the government Expected role of the government Competition Major Players Wipro Ltd. Tata Consultancy Services Ltd. Infosys Ltd. 2

3 Macroeconomic Indicators Introduction Overview of Modules Major Modules Market Overview Drivers & Challenges Trends Role of Government Competitive Landscape Strategic Recommendations Appendix 3

4 Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn Q1 Q Q Q4 Inflation Rate: Monthly % Jul Aug 2013 Aug Sep 2013 Sep Oct 2013 Oct Nov 2013 Nov Dec

5 Applications of Information Technology in Healthcare Summary Hospital Information System (HIS) IT Enabled Healthcare Personal Health Record (PHR) Electronic Medical Record (EMR) Increasing application of Information Technologies in healthcare is improving the treatment procedures and patient services 5

6 Information Technology enabled healthcare services can solve the problem of information accessibility Hospital Information System Hospital Information System can be used to optimally utilize the information collected from the healthcare industry HIS allows physicians or hospital administrators to take informed decisions HIS helps in smooth flow of day to day operations and medical services within all the departments of a hospital Hospital workflow is evaluated and monitored effectively Patient records are updated and made immediately available Stepping stone to seamless integration of records Electronic Medical Record A longitudinal collection of electronic health information of individuals which is accessible by authorized users for provision of knowledge, decision-support systems and helps in increasing the efficiency of healthcare delivery This redefines medical record accessibility with nil dependence on paper based record Serves as a handy back up for doctors in emergency cases Helps in medical history record maintenance and accessibility Helps in accessibility of information 6

7 Hospital Information System Major Modules (1/4) HIS has the capability to make hospital administration very methodical Registration and Appointment Effective management of front desk activities including registration, appointment, availability of doctors and patients personal, physical, clinical and demographic information Provides enquiry assistance regarding the admitted patients and sends reminders to the patients about the appointment schedules Electronic Medical Record Helps in recording clinical details of patients which can be accessed by authorized agents Real time recording of tests and medication Organized data record with least scope of incorrect entries Emergency Unit Management ADT Management Ambulance Availability Patient is monitored from the time he is admitted in the hospital till the time he is discharged Provides guidance to critical patients from the emergency ward to the respective bed Alerts are sent to the concerned department and doctors for efficient handling and care of such patients Further consulting, pharmacy and surgical details are provided Manages transfer and allocation of bed for patients Effective evaluation of patient condition with follow up of medication from doctors and nurses E-prescribing medication Helps in appropriate discharge of patients along with a comprehensive discharge summary Keeps a check on the hospitals available Manages the scheduled and emergency services Manages emergency facility provided in ambulances Provision of communication facilities 7

8 Increasing focus towards the betterment of the patient services will help the Indian Healthcare IT market to flourish HIS - Market Overview Indian healthcare IT market was valued at INR 23.5 bn in 2012 and is expected to reach bn in 2018 Patient demographic changes, the growth in chronic diseases and importance of patient safety is increasing the demand for health information technology (HIT) Companies such as Blackberry, HCL and HP are investing heavily in healthcare technology and Google is planning a centralized healthcare database for consumers With the introduction of a hospital information system (HIS), picture archival and communications system (PACS), and electronic health record system (EHR), volumes of data storage has been increasing rapidly EMR/HIS (electronic medical records / hospital information system) is slowly being used in tertiary corporate hospital groups and in selected remote government run primary health centers On Jan 26, 2014, Nizam s Institute of Medical Sciences (NIMS) was the first government hospital in Andhra Pradesh with an established Hospital Information System (HIS) Market Size and Growth INR bn % e 2015e 2016e 2017e 2018e 8

9 Drivers & Challenges - Summary Drivers Booming healthcare industry Growing medical tourism Growing health insurance market Need for database for recording medical cases Challenges Low spending in IT infrastructure Lack of IT training in initial career stages Lack of awareness Low HIS penetration 9

10 Trends Summary Telemedicine Cloud Computing 10

11 Porter s Five Forces Analysis Threat of New Entrants Impact x Impact x Impact x Impact x Bargaining Power of Suppliers Competitive Rivalry Bargaining Power of Buyers Impact x Threat of Substitutes 11

12 Competitive Benchmarking (2/5) Key Ratios of Top 3 Companies Operational Basis (FY 2013) (1/3) % a1 b1 Operating Margin Net Margin 10 0 Company A a2 Company B b2 a3 Company C b3 Company A recorded operating margin of x1%, higher than that of Company B which recorded operating margin of y2% but lower than that of Company C which recorded operating margin of z3% Net margin for Company A, Company B and Company C are a1%, b2% and c3% respectively, wherein Company A has the highest net margin among these three companies 12

13 Public: Domestic Company Company 1 (1/5) Company Information Offices and Centres India Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange Products and Services Mumbai Head Office Category Products/Services Key People Name Person 1 Person 2 Person 3 Person 4 Designation MD and Executive Director VC and VC of Share Transfer Committee Director Director 13

14 Public: Domestic Company Company 1 (2/5) Financial Snapshot e d c b a a1 z Total Income Financial Summary Net Profit/Loss The company earned a net profit of INR x1 mn in FY 2013, as compared to net profit of INR x2 mn in FY 2012 The company reported total income of INR y1 mn in FY 2013, registering an increase of y2% over FY 2012 The company earned an operating margin of z1% in FY 2013, an increase of z2percentage points over FY 2012 The company reported debt to equity ratio of a1 in FY 2013, an increase of a3% over FY 2012 Key Financial Performance Indicators a2 z Indicators Value (20/03/2014) a3 z Key Ratios a4 z s r q p Particulars Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Liquidity Ratios Current Ratio Cash Ratio Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover MEDICAL TOURISM MARKET IN INDIA 2014.PPT y-o-y change ( ) Improved Decline 14

15 Public: Domestic Company Company 1 (3/5) Key Business Segments Key Geographic Segments Segment 1 Segment 2 Region 1 Region 2 C% a1% C% x1% B% b1% b2% b3% b4% B% y1% x2% x3% x4% A% A% Business Highlights Description News Overview The company has operations in Country A, Country B and Country C that offers treatment for acute and chronic diseases in primary, secondary and tertiary care sectors Services Specializes in 50 specialties comprising cardiac sciences, oncology, radiology and imaging, gastroenterology, neurosciences, orthopedics, critical care services and in minimally invasive surgeries and transplantation Operates retail pharmacy outlets all across the country 15

16 Public: Domestic Company Company 1 SWOT Analysis (5/5) S O W T 16

17 Private: Domestic Company Company 2 (1/5) Company Information Offices and Centres India Corporate Address Tel No. Fax No. Website Year of Incorporation Products and Services Mumbai Head Office Category Ready Meals Instant Mixes Others Products/Services Key People Name Person 1 Person 2 Person 3 Person 4 Designation Director Director Director Director 17

18 Private: Domestic Company Company 2 (2/5) Shareholders of the Company Ownership Structure Name No. of Shares held Segment Segment Segment 19.0% 23.6% 57.4% 18

19 Private: Domestic Company Company 2 (3/5) Financial Snapshot t s r q p a1 b Total Income a2 Financial Summary b Net Profit/Loss The company earned a net profit of INR x1 mn in FY 2011, as compared to net profit of INR x2 mn in FY 2010 The company reported total income of INR x3 mn in FY 2011, registering an increase of x4% over FY 2010 The company earned an operating margin of x5% in FY 2011, an increase of x6 percentage points over FY 2010 The company reported debt to equity ratio of x7 in FY 2011, a decrease of x8% over FY 2010 a3 b Key Ratios a4 b f e d c b a Particulars Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Liquidity Ratios Current Ratio Cash Ratio Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover y-o-y change ( ) Improved Decline 19

20 Private: Domestic Company Company 2 (3/5) Business Highlights Description News Overview Company 2 has hospital network in Country A, Country B and Country C and is primarily headquartered in Country D Presently located in 10 cities in India having hospitals in Region 1, Region 2 and Region 3 Facilities Has core specialties in heart care, brain and spine, bone and joint and minimal access surgery Provides advanced medical diagnostics and treatment with personal care Recognitions Obtained NABH accreditation within one and a half years of beginning operation in India Hospital A, Region 1, Hospital B, Region 2 has been NABH accredited 20

21 Private: Domestic Company Company 2 SWOT Analysis (5/5) S O W T 21

22 Thank you for the attention Hospital Information System Market India report is part of Netscribe s Healthcare Industry Series. For any queries or customized research requirements, contact us at: Phone: About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. 22