DETAILS OF HEALTHCARE INDUSTRY WITH RESPECT TO NAGALAND

Contribution Of Healthcare In National GDP Major Players In India Local Taxes And Duties Applicable To Healthcare Special Benefits Given By Gujarat Government To Healthcare

Contribution of healthcare industry to national GDPIndian healthcare delivery system is categorized into two major components - public and

private. The Government, i.e. public healthcare system comprises limited secondary and

tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the

form of primary healthcare centers (PHCs) in rural areas. The private sector provides majority of

secondary, tertiary and quaternary care institutions with a major concentration in metros, tier I

and tier II cities.

India's competitive advantage lies in its large pool of well-trained medical professionals. India is

also cost competitive compared to its peers in Asia and Western countries. The cost of surgery

in India is about one-tenth of that in the US or Western Europe.

MARKET SIZE:

The overall Indian healthcare market today is worth US$ 100 billion and is expected to

grow to US$ 280 billion by 2020, a compound annual growth rate (CAGR) of 22.9 per

cent. Healthcare delivery, which includes hospitals, nursing homes and diagnostics

centers, and pharmaceuticals, constitutes 65 per cent of the overall market.

There is a significant scope for enhancing healthcare services considering that

healthcare spending as a percentage of GDP is rising. Rural India, which accounts for

over 70 per cent of the population, is set to emerge as a potential demand source.

India requires 600,000 to 700,000 additional beds over the next five to six years,

indicative of an investment opportunity of US$ 25-30 billion. Given this demand for

capital, the number of transactions in the healthcare space is expected to witness an

increase in near future. The average investment size by private equity funds in

healthcare chains has already increased to US$ 20-30 million from US$ 5-15 million

Healthcare industry is growing at a tremendous pace owing to its strengthening

coverage, services and increasing expenditure by public as well private players

During 2008-20, the market is expected to record a CAGR of 17 per cent

The total industry size is expected to touch USD160 billion by 2017 and USD280 billion

by 2020

As per the Ministry of Health, development of 50 technologies has been targeted in the

FY16, for the treatment of disease like Cancer and TB

Major players of industry with market shareNagaland state is far behind in healthcare sector. Infrastructure development for healthcare sector is not adequate and lacks facilities.

At present, only 500 doctors are serving against population of 2 lac.

Sr.no. Company name City

1 Oking Hospital and Research Clinic Pvt Ltd Kohima

2 Mhondamo Memorial Nursing Home Wokha

3 Bethel Medical Centre Kohima

4 Metro Hospital Dimapur

5 Faith Hospital And Institute Of Medical Sciences Dimapur

Local taxes and duties applicable to healthcare industryHealth Care Taxable Service

Services provided by any hospital, multi specialty clinic or nursing home, either to an employee

of any business or a person covered under the health insurance scheme falls under the taxable

services category.

Service tax is applicable on the following select health services:

Health check ups

Corporate health check up

Health insurance schemes offered by insurance companies

Non Taxable Health Care Services

For health care service provided by entities meeting the following requirements, service tax is

not applicable:

Service provider should not be hospital, nursing home or multi-specialty clinic;

The service is provided by a an independent doctor or a resident doctor of a hospital;

The individual receiving health services is an employee of the same business (hospital or

clinic) that is providing the health service;

Preventive care offered to the insured person;

Payment made by the individual for health services obtained by the individual;

CENVAT Credit for Health Care Services

If an insurance company makes a payment to the hospital in such case the insurance company

will be the service receiver. The hospital is liable to pay service tax in such case and the tax

amount paid will allow the insurance company to avail CENVAT credit against the general

insurance which in this case would be the output service.

Current service tax rate: 14.5%

Special benefits given by government to healthcare industryGOVERNMENT INITIATIVES:

India's universal health plan that aims to offer guaranteed benefits to a sixth of the world's

population will cost an estimated Rs 1.6 trillion (US$ 24.03 billion) over the next four years.

Some of the major initiatives taken by the Government of India to promote Indian healthcare

industry are as follows:

The Competition Commission of India (CCI) in its meeting has approved the proposed

merger between Sun Pharma and Ranbaxy, subject to the parties inter alia carrying out

the divestiture of their products relating to seven relevant markets for formulations.

India and Sweden celebrated five years of Memorandum of Understanding (MoU). The

cooperation in healthcare between India and Sweden will help in filling gaps in research

and innovative technology to aid provisioning of quality healthcare.

Mr J P Nadda, Union Minister for Health & Family Welfare, Government of India has

launched the National Deworming initiative aimed to protect more than 24 crore

children in the ages of 1-19 years from intestinal worms, on the eve of the National

Deworming Day.

Under the National Health Assurance Mission, Prime Minister Mr Narendra Modi's

government would provide all citizens with free drugs and diagnostic treatment, as well

as insurance cover to treat serious ailments.

All the government hospitals in Andhra Pradesh would get a facelift with a cost of Rs 45

crore (US$ 6.76 million), besides the establishment of 1,000 generic medical shops

across the State in the next few months.

Mission Indradhanush launched by Mr JP Nadda aims to immunise children against

seven vaccine preventable diseases namely diphtheria, whooping cough, tetanus, polio,

tuberculosis, measles and hepatitis B by 2020. Government has set a target of 95 per

cent immunisation cover by end of 2016.

The E-health initiative, which is a part of Digital India drive launched by Prime Minister

Mr Narendra Modi, aims at providing effective and economical healthcare services to all

citizens. The programme aims to make use of technology and portals to facilitate people

maintain health records and book online appointments with various departments of

different hospitals using eKYC data of Aadhaar number.

INITIATIVES TAKEN BY STATE GOVERNMENT:

Public Private Partnership (PPP):

a. Zion Hospital, Dimapur has adopted Athibung PHC of Peren district for regular outreach

activities.

b. 3 Mission hospitals at Mokokchung, Wokha and Zunheboto are being provided financial

support.

c. Currently 3 MNGOs are working effectively in four districts in the unreached areas. 7 more

MNGOs for the remaining districts have been inducted during the year.

d. To enable universal access on JYS and Family Planning, the department has entered

partnership with private nursing homes in Dimapur (3 nos), Kohima (1 no) and Mokokchung

(1 no).

e. During the current FY, the following partnership were developed:

i. Collaboration with Medecins Sans Frontieres/MSF to improve the access and provision

of quality health care services for the population of Nagaland particularly the district of

Mon.

ii. Collaboration with Eleutheros Christian Society/ECS in the management of the

Langpong Health Centre presently managed by ECS, as a 24x7 PHC facility to promote

and provide universally acceptable, accessible, equitable and quality health care

services for the population of Changsang Range and Tuensang district in general.

iii. Collaboration with Police Department to universalize health care delivery by

strengthening the Central Hospital Chumukedima as a First Referral Unit (FRU) for

delivery of quality health care, to incorporate the National Disease Control

Programmes (NDCPs) in the services delivery of all the Health Units under Police

Department, the Police Department to participate in the Health Information

Management System (HMIS) of the State and to provide health care services to all.

iv. Collaboration with /Christian Institute of Health Sciences & Research/CIHSR for opening

of a Regional Pamedical Training Institute under DoNER ministry.

Health Management Information System (HMIS):

In order to circumvent the inherent problems associated with difficult terrain, the state

has made an elaborate plan to exploit the IT technology for HMIS and other reporting

system of various national health programmes. Thus, in collaboration with NHSRC, New

Delhi a pilot project for mobile-data transmission has been launched in six Sub-Centres

under Jalukie block of Peren district in 2009-10 and during the current FY, the facility will

be provided to all health units in the state.

Also since this year, HMIS is being uploaded facility wise to the GoI web portal. The

reports are being analyzed monthly and feedback sent to the districts to undertake

necessary remedial measures. With the triangulation of health information, the quality in

the management of health issues at the state and the district level has improved tangibly.

National Rural Health Mission (NRHM):

The National Rural Health Mission (NRHM) in Nagaland was launched in Feb‘06. Within the time

span of these few years, the state has shown significant improvement in health care delivery

both in terms of physical infrastructure and service delivery output. Some of the key

achievements under the NRHM implementation are as follows:

The under-mentioned funds are directly transferred to the accounts of various Health

Committees as innovative funds under NRHM:

Facility Numbers

Amount (in Rs.)

Untied fund Maintenance fund RKS

Recognized

Villages 1278 10000.00

0.00 0.00

SC 397 10000.00 10000.00 0.00

PHC 86 25000.00 50000.00 100000.00

CHC 21 50000.00 100000.00 100000.00

SHC 27 0.00 0.00 0.00

BD 15 0.00 0.00 0.00

DH 11 0.00 0.00 500000.00