The rise and fall of vasan eye care

Abstract

With growing technological advancements in the medical and surgical sector, the healthcare and services industry attracted a lot of attention in the years after the 1990s. Healthcare became one of the largest industrial sector in India for both, the government and the private players in terms of revenue and employment. With an estimated direct employment of 7.5 million and an estimated revenue generation of USD 280 billion by 2020, the healthcare sector in India had just arrived1. The sector was expected to grow at a CAGR of 16.5% during the period of 2008-2020 (Exhibit 1). For the fiscal year, the Ministry of Health targeted 50 technological developments for the treatment of diseases like cancer and TB2. The demand side showed signs of an upward trend as well. The per capita healthcare expenditure was estimated to reach USD 68.6 billion in 2015 growing at a CAGR of 5% during the period of 2008-2015 (Exhibit 2). The steady improvement in the quality of life over time led to an increase in the per capita income, greater awareness of the advances in healthcare facilities, easier access to low cost and high quality services and an increased sensitivity to personal hygiene. These factors, coupled with increased insurance penetration resulted in the rise of healthcare spending, a trend expected to continue over the next decade. The Indian government had to take steps to address this neglected sector