For a resilient, future-ready healthcare, pharma and life sciences

The Indian healthcare sector has undergone significant transformation in the last decade, offering a remedy to millions of people in India and worldwide. The industry has been positively influenced by changes in demographics, evolving patient needs, the emergence of affordable healthcare, and technological advancements.

While this progress is commendable, it poses a distinct challenge for healthcare systems. They must not only meet the growing demand but also strive to stay ahead and foster innovation.

At Forvis Mazars, we recognise the importance of collaborating with healthcare professionals, companies in the space, governments, policymakers, and investors. Our team of experts provides specialised guidance to address cost pressures while utilising our technical knowledge, all with the ultimate goal of constantly enhancing the quality of care through innovation.

Budget allocation 2024-25
The 2024-2025 budget allocates US$10.81bn to the Department of Health and Family Welfare, Government of India to strengthen healthcare in rural and urban areas, focusing on vulnerable populations.

Rising public investment in social services and healthcare
As highlighted in the Economic Survey 2023-24, public investment in social services has surged from 6.7% of GDP in 2017-18 to 7.8% in 2023-24. Health spending has seen a notable rise from 1.4% to 1.9%. The government aims to increase public health spending to 2.5% of GDP by 2025

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana
Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), with its budget boosted by 7% to US$0.86bn, ensuring broader coverage and access to healthcare for millions.

The future of healthcare in India is set to be transformed by the rise of AI, wearable tech, and IoT. Combined with a projected US$0.86bn medical device market by 2025v, these innovations are poised to drive India’s healthcare system into a new era, expanding access to quality services and positioning the country as a global leader in health technology.

On-ground challenges

1. Accessibility and accountability
Since 80% of medical experts reside in metropolitan regions, it is noticed that 70% of the population lacks access to such care. Access to healthcare in rural India remains limited, with only 13% of residents able to reach primary health centers, 33% having access to subcenters, and just 9.6% near hospitals.

2. Shortage of skilled healthcare professionals
India faces an ongoing shortage and unequal distribution of human resources for health (HRH), with rural specialist groups being the hardest hit by this shortage.

3. Fragmented digital health systems
Healthcare facilities struggle with electronic health records (EHR) adoption, hindering telemedicine effectiveness. Hence, there is a need to introduce more schemes on the lines of Ayushman Bharat Digital Mission for standardising EHR, improving interoperability, and expanding the reach of telemedicine services.

4. Regulatory and compliance complexities
Healthcare providers face extensive compliance regulations across different states, leading to occasional overruns and operational challenges, particularly for those in the private sector.

5. Operational inefficiencies and financial strain
Rising operational costs and delayed reimbursements burden healthcare institutions, particularly in rural areas.

6. Data security and privacy concerns
Healthcare institutions struggle to maintain data privacy amid new digital technology implementation.

7. Slow private investment in non-metro cities
Most private investment targets metropolitan areas, leaving Tier II and III cities underserved in specialised care and facilities.

Our approach

Independent specialist advice to help deliver better, fairer health outcomes.

At Forvis Mazars, we understand the need to work collaboratively with companies,
governments, policymakers and investors to deliver healthy, safe societies. We offer
specialist advice to address cost pressures while leveraging our technical expertise with one objective in mind: to help continuously improve the quality of care.

Our solutions are designed to help authorities, organisations and companies manage and
improve their day-to-day operations in the health sector, anticipate changes and achieve real transformation. Whether you need short-term accounting solutions or a longer-term
appraisal of your organisation’s strategy, we have the experience and knowledge to support you. Our team members have years of experience as consultants or accountants in the medical and social care sectors. Based on your requirements, we aim to build a team with the best skills to drive your organisation forward.