Healthcare 2011: Of misery tax, tragedy

For India's healthcare industry, expected to double to $100 billion by 2015, this year was marked by expansion and consolidation as well as painful moments of the Kolkata hospital fire.

Besides, there were irritants like the move to impose the 'misery tax' on the sick.

Major chains like Fortis and Apollo continued expansion to cash in on the ever increasing lifestyle-related health issues, coupled with improving insurance reach, government initiatives and improving incomes.

Max Healthcare, meanwhile, sold off 26 per cent stake to South Africa's Life Healthcare Group for Rs 516.5 crore. It was not the best start to the year for the private healthcare providers, with Finance Minister Pranab Mukherjee deciding to impose 5 per cent service tax on treatment in air-conditioned hospitals with more than 25 beds paid either by individuals, insurance firms or companies.

Miffed at this Budget proposal, the industry called for the removal of the tax, which they termed as 'misery tax". Mukherjee, finally, rolled it back.

The year, which could have well been remembered as the one in which all the major private players went for expansion and consolidation, was blotted by the fire tragedy at the AMRI Hospital that took 93 lives.

One of the biggest hospital fire tragedies in India, the AMRI incident put a question mark on the ways of management of healthcare facilities by private players and failure to comply with the safety norms.

Nevertheless, 2011 was a year when Fortis Healthcare went in for consolidation of its domestic and global operations. Fortis Healthcare India agreed to pay USD 665 million (around Rs 3,270 crore) to acquire Singapore-based Fortis Healthcare International Pte from a firm owned by the promoters.

Post-consolidation, Fortis boasts of over 74 hospitals, with more than 12,000 beds, 580 primary care centres, 188 day care speciality centres, 190 diagnostic centres and a base of over 23,000 employees.

... contd.

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