2. Table of Contents
• Executive Summary 8
• Research Objective and Methodology 16
• Healthcare Industry Overview 23
• Healthcare Information Technology Market Overview 29
• Indian Healthcare Information Technology Standards and Regulatory Framework 32
• Indian Healthcare Budget 39
• Market Engineering Measurements 42
• Market Dynamics (Industry Challenges and Market Drivers and Restraints) 44
• Market Analysis 54
• Strategic Recommendations 60
• Appendix–Country-wise IT Ranking and Analysis 66
• Decision Support Database 72
• About Frost & Sullivan 79
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3. List of Figures
Healthcare Industry: Healthcare Expenditure (India), 2006-2016 24
Healthcare Industry: Major Private Healthcare Groups (India), 2009 27
Healthcare Industry: Upcoming Key Hospital Groups (India), 2009 28
Healthcare Information Technology Market: Healthcare Budget (India), 2009 40-41
Healthcare Information Technology Market: Impact of Industry Challenges (India), 2010-2016 45
Healthcare Information Technology Market: Market Drivers Ranked in Order of Impact (India), 2010-2016 48
Healthcare Information Technology Market: Market Restraints Ranked in Order of Impact (India), 2010-2016 51
Healthcare Information Technology Market: Revenue Forecasts (India), 2009-2016 55
Healthcare Information Technology Market: Opportunity Assessment (India), 2010-2016 62
Healthcare Information Technology Market: Information Technology Ranking (India), 2009 68
Healthcare Information Technology Market: IT Potential based on Existing Infrastructure (India), 2009 69
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4. List of Figures (Contd…)
Healthcare Information Technology Market: Government Interest toward IT Adoptions (India), 2009 70
Decision Support Database: Foreign Direct Investments (World), 2009 73-74
Decision Support Database: Personal Disposable Income Per Capita (World), 2009 75-76
Decision Support Database: Total Population (World), 2009 76-78
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5. List of Charts
Healthcare Information Technology Market: Healthcare Information Systems’ Components (India), 2009 10
Healthcare Information Technology Market: Market Drivers and Restraints (India), 2010-2016 13
Healthcare Industry: Healthcare Expenditure (India), 2006-2016 24
Healthcare Industry: Industry Trends (India), 2009 25
Healthcare Industry: Healthcare Delivery Pattern (India), 2009 26
Healthcare Information Technology Market: Existing and Future Levels of Adoption Systems (India), 2009-2014 31
Healthcare Information Technology Market: Market Engineering Measurements (India), 2009 43
Healthcare Information Technology Market: Revenue Forecasts (India), 2009-2016 55
Healthcare Information Technology Market: Percent of Revenues by Segment (India), 2009 56
Healthcare Information Technology Market: Percent of Revenues by Sub-segment (India), 2009 57
Healthcare Information Technology Market: Competitive Forces (India), 2009 61
Healthcare Information Technology Market: Future Outlook (India), 2000-2020 65
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7. Key Definitions
The following definitions are used in this study:
• Healthcare information technology (HIT) includes all software and systems applications used in the administrative/business
settings and clinical environments, which include integrated delivery networks, acute hospitals, secondary hospitals, primary
care centers, freestanding medical centers, diagnostic centers, and group practices. The Indian HIT market is segmented
into administrative and clinical HIT. Some of the functions that are managed by administrative system modules include the
following:
• Financial management, including accounts payable, general ledger and budgeting, and fixed assets
• Materials and supply chain management
• Human resource and payroll management
• Strategic enterprise management, including performance measurement, strategy management, strategic planning, and simulation
• Business analytics
• Business support, including contract management, fixed asset management, and equipment maintenance
Some of the functions that are managed by clinical system modules include the following:
• Patient management systems with master patient index and scheduling
• Patient clinical management systems, including charting, order entry tracking and reporting, as well as physician access
• Electronic medical records and electronic health records
• Imaging information management systems for radiology, cardiology, orthopedics, and ophthalmology
• Laboratory information systems and pharmacy information systems with decision support and knowledge database
• Treatment and operation modules for operating room management, emergency services, and critical care
• Care management modules, including care schemes, nursing documentation, care protocols, and pathways
• HIT also includes consulting and other professional services.
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8. HIT Segments - Functional Groups
Healthcare Information Technology Market: Healthcare Information Systems’ Components (India), 2009
Healthcare Information
Systems
Financial Resource Clinical Patient Life
Management Related Sciences
• General ledger • Clinical Information
• Accounts receivable Systems
• Inventory • Admission, discharge • Bioinformatics
• Account payable • Hospital departmental
• Human resource and transfer • Gene
• Purchasing order systems
• Scheduling • Patient master index sequencing
• Billing • Laboratory information
• Facility • Electronic medical • Gene analytics
• Third-party Payer systems
management record • Library IS
• Insurance • Radiology information
• Reporting • Electronic health • College IS
System
• Business record • Research IS
• PACS
intelligence • Patient health record
• Pharmacy
• Health portal
• Decision support
system
IS – Information System
PACS – Picture Archiving and Communication Systems
Source: Frost & Sullivan
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9. Market Overview
• Since the 1990s, many large hospital in India have adopted hospital information systems, this
systems are mainly built in-house or source from local vendors. On the other hand, many
small hospitals have some kind of back office applications and recently begin to adopt clinical
applications. The current trend is for large hospitals to opt for state-of-the-art devices and
electronic medical records (EMR).
• In 2008, about xx.x percent of the healthcare spending was funded by the Government. and
the private sector funded the remainder.
• Self-paid category accounts for a high proportion of healthcare expenditure. Health insurance
covers less than xx.x percent of the healthcare expenditure in India.
• The imbalance of healthcare services exist among regions/cities, with more healthcare
facilities concentrated in and around metros/tier-one cities. However, this trend is changing
as new private hospitals are being established in small cities that cater to middle-range
income group. Furthermore privatization of medical insurance will become a major driver of
health IT adoption over the next few years
• Private hospitals are expected to reduce the shortage of healthcare services. More than x.x
million beds need to be added to reach a ratio of x.xx per/xxx, out of which about xxx,xxx
beds are likely to be contributed by the private sector over the next six years.
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10. Market Overview (Contd...)
• Medical tourism is partly causing a number of hospitals to invest in world class facility. In
2008 India treated around xxx,xxx foreign patients ranking it second in medical tourism.
• Growth of the insurance sector is expected to demand a more efficient information storage
and retrieval from hospitals and healthcare providers.
• The Ministry of Health and Family Welfare, Ministry of Communication and Information
Technology, state government, and the Indian Space Research Organization (ISRO) have
played significant roles in the development of e-health in India.
• Being a hub for IT, India has a number of local, large end-to-end solution providers and
product vendors. Wipro Infotech, Tata Consulting Services Limited, and Mahindra Satyam
have had significant roles to play in hospital information systems (HIS) implementation,
establishment of nationwide emergency systems, and growth of telemedicine.
• India is at par with other Asian market in being a highly price-sensitive market. Local
participants are dominant; however, this trend is slowly changing as more international
companies have ventured through partnerships and strategic alliances.
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11. Market Drivers and Restraints
Healthcare Information Technology Market: Market Drivers and Restraints (India), 2010-2016
Increase in Ever-increasing Advent of Rise in the demand
competition among Technological
volumes of healthcare private for quality healthcare advancement and
private healthcare data and an insurance and facilities by rapidly
groups is leading to value proposition of
insufficient number of emergence of expanding middle healthcare IT
performance professionals are India as a and affluent class solutions that
Drivers
Drivers
pressure on driving hospitals to medical population
healthcare providers influence the
adopt healthcare IT tourism operations and
solutions destination reputation of
hospitals
Restraints
Restraints
Huge initial Lack of flexible
Limited knowledge
investments and solutions and the
about applications of
immeasurable return required case-to-case Under funding of information technology
on investments curb Lack of standards customization at the public in healthcare provider
the penetration rate of and stringent customers’ end healthcare services space retards the
vendors, thus regulations for IT increases the and the market
restricting the market systems inhibits complexity of the consequent lack of
revenues the market growth market and reduces its resources for IT
growth potential investments
Source: Frost & Sullivan
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