Student Dissertation

Agency : Dialysis Market; Public Private Partnership; PPP Model

Objective : General Objective: To understand the concept, current status and future trend of Public Private Partnership (PPP) in Dialysis market in India. Specific Objective • To understand the concept of PPP model in dialysis market of India. • To determine the future expansion trend in PPP model in Indian dialysis market. • To point out the challenges and barriers of PPP project in dialysis market of India

Background : In India, nearly 200,000 new patients require dialysis every year and it is estimated that less than 30% of patients are able to receive this life saving therapy most likely due to non-availability or affordability. On an average, the dialysis session cost ranges from Rs.500 (Subsidized charitable outlets) to about Rs.2000 in private organization and the compliance is low due to non-availability and affordability. This challenge needs to be addressed through a concerted effort of both public and private sectors by their agreeing on suitable public policy initiatives which incentivize financing and provision of healthcare, and thereby increase healthcare access to the people. Public private partnership plays a crucial role especially in dialysis sector. The government is moving towards this model because it will assure not only reach and affordability but also quality standards.

Methodology : Study Design: It is a descriptive study in which both qualitative as well quantitative data are involved. Primary research: Semi-structured interviews with nephrologists and industry experts like equipment manufacturers were conducted to achieve the specific objectives of the study ? Internal and external secondary research ? Internal data: Databases and past primary researches (PWC data) ? External data: Government statistics and information from government agencies. ? Different media such as articles from respected magazines and newspaper, reports from research centers.

Recommendations : Rationale: Due to lack of access and capacity to pay for the dialysis, only 70% manage to get access to dialysis. As PPP model has been able to achieve success in other sectors like infrastructure, transport etc., its implication in dialysis is also important. With the efforts of government to make the healthcare services available to the public, this sector is going to flourish. The purpose of this study is to understand the concept of public private partnership and its impact on dialysis market in near future.

Conclusion: After discussion with industry experts and nephrologist, estimates were made about rate at which the machines will grow, the patients might grow, effect of PPP on market, funding status. In a Base Case Scenario, the number of machines is expected to increase at ~14% till 2025 due to expansion in PPP and organised players sector. Prevalence of ESRD increases from its current level of 800 ppm to 1100 ppm, due to increased incidence of risk factors like hypertension diabetes, obesity, etc. Increased affordability and increased health insurance penetration further increases the demand for dialysis services. The number of machines grow at 15% annually till 2020 and then tapers down. Government initiatives in PPP sector expand due to increased funding. Organised Player’s growth further continues, and it adopts advanced management practices. This will make a positive impact on the coverage of patient under dialysis. The availability and affordability might improve if accompanied by proper awareness and treatment regimen which will increase the compliance for dialysis thereby.


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