Healthcare infrastructure spending to reach $14.2 bn by 2013: KPMG

Healthcare infrastructure spending to reach $14.2 bn by 2013: KPMG
PTI
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First Published: Tue, Jul 21 2009. 03 20 PM IST
Updated: Tue, Jul 21 2009. 03 20 PM IST
New Delhi: Expenditure on healthcare infrastructure in India is expected to touch $14.2 billion over four years in 2013, according to a report by consultancy firm KPMG.
“Total healthcare infrastructure expenditure for 2013 is predicted to reach $14.2 billion, a near 50% increase on the 2006 total,” the report said.
Healthcare infrastructure includes buildings, equipment, ambulances, etc.
“The main factors propelling this growth are rising income levels, changing demographics and illness profiles with a shift from chronic to lifestyle diseases,” the KPMG report said.
Of the states and union territories, six — Maharashtra, Rajasthan, Uttar Pradesh, West Bengal, Andhra Pradesh and Tamil Nadu — account for more than 50% of the total healthcare infrastructure spending in the country.
The report forecast that during 2009-13, Maharashtra will spend over seven billion dollars on healthcare infrastructure.
The KPMG report said during the period, Rajasthan and West Bengal will cumulatively spend $5 billion on healthcare infrastructure, while Uttar Pradesh, Andhra Pradesh and Tamil Nadu will spend over $4 billion each.
Maharashtra with less than 10% of the total population accounts for around 12% of the total expenses in the segment. It spent $1.1 billion on upgrading healthcare institutes in 2006.
According to the report, there are twelve states that spent less than $100 million each in 2006, together representing 4.5% of the total national expenditure and 3.6% of the total population.
In terms of the per capita health infrastructure expenditure in 2006, the Andaman and Nicobar islands led at $36 per head while Bihar lagged with lowest expenditure at $1.9 per head.
This reveals an uneven distribution in terms of development of health infrastructure in India, the report said.
Himachal Pradesh, Manipur and Andaman & Nicobar Islands were the only states, which spent over $30 per head on developing healthcare infrastructure.
Cumulatively, per head spend on healthcare infrastructure during 2009-13 is projected to be over $250 for Andaman & Nicobar and Manipur, while for states like Bihar, Uttar Pradesh, Chattisgarh and Jharkhand it will be less than $50.
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First Published: Tue, Jul 21 2009. 03 20 PM IST