Opportunities
I do not mean to capitalize on the disease of cancer, which is harming people’s lives.
Some of the statements might feel wrong ethically, but we are here to stick to the facts, and that is what is shown below.
• Cancer cases growing- According to the National Cancer Registry Programme (NCRP) Report 2020, published by the ICMR and the National Centre for Disease Informatics and Research in Bengaluru, the number of cancer cases in 2020 is estimated to be 13.9 lakhs and it is projected to increase to 15.7 lakhs by 2025. The report also suggested that females are more prone to cancer than males.
• Higher life expectancy will lead to better footfalls- due to several new technologies being used in the treatment of cancer patients, a better understanding of the disease, innovative medications, and the ability to catch cancer when it is young and treating it has resulted in cancer patients being treated more efficiently with chances of survival being increased significantly when compared to the last decade. As there is no medication or treatment to cut out cancer completely, even after being operated the patients need to visit the hospital for keeping a check on it and for further treatments. Now as the life expectancy of the patients has increased, they still has cancer. They will need to keep visiting the hospital throughout their life, thus increasing footfalls.
• Rural is still underpenetrated- most hospitals are in tier 1-2 cities, as the collection, margins etc are better there. But this has led to the rural areas being unfocused/less focused on. There is an huge opportunity for HCG here as it plans to capitalize on this grey area and create a brand for itself for the future.
• Increase in insurance penetration- cancer treatments are very expensive, on an average ranging from 3-6 lakhs. This can also range in high double digits in some cases. Not everyone can afford to pay such an huge amount, but now the people in India are getting more educated and opting for insurance plans. The number of insured people is increasing at a rapid pace. What this will cause is if any disease or health issue, they will not hesitate to go to the doctor and continue with the surgery as they have the insurance company paying this huge amount for them. Check the statements by HCG below.
Also government is aiding with the launch of
Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY): Ayushman Bharat is one of the largest healthcare schemes in the world, offering health insurance of up to INR 5 lakh. The scheme is designed to cover economically weaker sections of society and strives to serve more than 50 crore Indians.
• Boost in medical tourism- With rapid advancements in the medical industry, the quality of clinical care has improved significantly. It has also ensured cost efficiency and made India an attractive medical tourism destination. Many hospitals in India today meet international standards and deliver the expertise of highly qualified and trained medical professionals. India is a lot cheaper got treatments compared to its peer, and this is without any sacrifice of standards or quality of treatment. This should be a big trigger as and when the awareness about India and its hospital standards increases.
• Huge potential in the fertility segment- in FY22 HCG did close to 1,747 IVF cycles, total IVF cycles performed in India are close to 2-2.5 lakh. This provides an immense growth opportunity for HCG now that it has a renewed focus on Milann (the fertility segment).
Avatar program- HCG was working with Microsoft to develop this technology, where doctors from different states or countries can guide doctors performing surgeries in a different locations virtually. This research was being done previously, but now HCG isn’t providing any information regarding this. But if this plays out this can not only help the doctors in HCG and this increasing efficiency but also can be sold as a product to other hospital chains.This should be considered as an optionality and not a trigger.
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