‘Exorbitant real estate costs is an entry barrier for many investors in healthcare’

Western region’s healthcare industry has grown over several decades. Mumbai has many reputed providers and other cities like Pune, Ahmedabad also boasts of several major players. The factors attracting healthcare entrepreneurs to the Western region are as follows:

The economic condition of the Western states has improved significantly since independence and the industrial growth has been visible. It has indirectly fuelled the growth of the healthcare sector as well.

This region has grown not only in selected metros but also in the tier II cities and non-metro cities. They have grown significantly, with huge number of population base and a bigger catchment area.

Industries and sectors complimenting the growth of healthcare sector are prominently present in the Western region, an influential factor for healthcare entrepreneurs to set up base in this area.

Medical, nursing and other training institutes from the Western region are delivering a high number of trained professionals and healthcare resources which indirectly facilitate the growth of the healthcare sector.

Good connectivity with international markets has also benefitted the Western region cities by making them international hubs.

However, though there are benefits galore, there is a major challenge in the form of infrastructure development. In a city like Mumbai, exorbitant real estate costs is an entry barrier for many investors in healthcare. Recently introduced policy on restriction of hospital building heights has also been a hurdle for developing hospitals. The lack of infrastructure to support emergency medical services has remained one of the challenges and concerns. Finally, most of the reputed hospitals in Mumbai are run by trust organisations. Over last few years, these trust organisations have faced several regulatory issues which are a big concern to all.

– Gautam Khanna, Chief Executive Officer, PD Hinduja Hospital & MRC