Knowledge@Wharton -- Health Economics

No Other Choice: Why Medical Tourism Continues to Thrive

Thu, 02 Jun 2011 14:02:18 EST

In this opinion piece, Ravi Aron, a professor at Johns Hopkins University and a senior fellow at the Mack Center for Technological Innovation at Wharton, argues that until affordable universal health care is a reality in the U.S., Americans will continue to travel abroad for health-related services.

Healthy Business: Will Medical Tourism Be India�s Next Big Industry?

Thu, 02 Jun 2011 14:02:18 EST

U.S. President Barack Obama recently encouraged Americans to use the country’s health care system for their operations and procedures, instead of going to India and Mexico. But for many, medical tourism is not a matter of choice: They simply cannot afford treatment in the U.S., experts point out. In India, meanwhile, the medical tourism industry is booming, even as controversies erupt over quality and environmental issues.

Apollo Hospitals' Sangita Reddy: 'We Are Innovating with Models of Health Care'

Sun, 15 Aug 2010 23:23:45 EST

Enhancing affordability and access to health care in India presents both challenges and opportunities for private companies like Apollo Hospitals, a 50-hospital chain with 8,500 beds. Apollo has already expanded its reach with telemedicine and reengineered its services to lower costs. Its next endeavor is to help create healthy living environments by promoting clean drinking water, better sanitation and appropriate immunizations, says Sangita Reddy, executive director, in an interview with India Knowledge@Wharton.

Innovating Around India's Health Care Challenges

Thu, 29 Jul 2010 14:39:02 EST

Delivering affordable health care to India's billion-plus people presents enormous challenges and opportunities for service providers. Innovative technologies, processes and partnerships have begun bridging the health care gap, according to a panel discussion at the recent Wharton India Economic Forum in Philadelphia.

Narayana Hrudayalaya: A Model for Accessible, Affordable Health Care?

Thu, 01 Jul 2010 14:56:36 EST

Cardiac surgeon Devi Shetty is on a mission to build 5,000-bed "health cities" across India, encouraged by the success of his nine-year-old Narayana Hrudayalaya hospital in Bangalore. He has contained costs at that facility by tweaking pricing and salary structures, driving hard bargains with vendors and negotiating creative partnership deals. Despite the challenges he faces in replicating what he calls "the Walmart approach" to medical services, Shetty believes using economies of scale could lead to a new health care model not only for India, but perhaps also for the world.

A 'Bigger Foothold': What Does the Abbott-Piramal Deal Mean for Indian Pharma?

Thu, 03 Jun 2010 15:24:46 EST

In May, U.S.-based Abbott Labs secured the top spot in India's growing pharmaceutical industry -- and a potential springboard into other emerging markets -- with its US$3.72 billion takeover of Piramal Healthcare's branded generics business. At the same time, hopes that one of India's pharmaceutical majors would emerge as a global player have receded. According to Wharton faculty and industry experts, changing global business models and the resources needed to develop blockbuster drugs are propelling Indian companies to join forces with multinationals through strategic alliances or as targets for acquisitions.

'Reverse Innovation': GE Makes India a Lab for Global Markets

Thu, 20 May 2010 15:35:01 EST

GE Healthcare is taking steps to make its India operations a center for "reverse innovation" -- in which cutting-edge products are first used in the developing world before spreading to more industrialized nations. At GE's John F. Welch Technology Centre in Bangalore, it has 1,100 engineers currently working on six medical equipment technology products; the goal is to cover each of its 30 categories in the next three years. While India's huge domestic market may justify the investment, GE Healthcare will face challenges in the distribution and servicing of its products, experts say.

Lifeline Express: Can Trains-turned-hospitals Cure Rural India's Health Care Woes?

Thu, 25 Mar 2010 12:58:05 EST

It began nearly 20 years ago with three old, wooden carriages donated by Indian Railways. Since then, Lifeline Express -- the world's first hospital on rails -- and its 100,000 volunteers have offered state-of-the-art medical services to nearly 600,000 patients to help address the enormous gap in rural health care. As Zelma Lazarus, CEO of Impact India, the foundation that set up Lifeline, notes, "People are so desperate for medical treatment they lie on the tracks to stop the train from leaving." But without policy changes and more state funding, are services such as Lifeline's sustainable?

Compassion vs. Cost: Improving the Prognosis for India's Health Care Sector

Thu, 11 Feb 2010 15:53:46 EST

Highly qualified doctors and scientists, state-of-the-art technology and low costs have made India an attractive global hub for medical tourism, clinical studies and R&D. Now, however, Indian health care is at a critical turning point, putting its innovative acumen to the test, said a range of medical experts who spoke during a three-day course jointly conducted by Wharton and the Indian School of Business in Hyderabad. Sustaining India's competitive advantage in health care, they agreed, hinges on the ability of hospitals, drug manufacturers, biotech firms and non-governmental organizations to continuously find new and efficient ways to build their businesses while addressing the needs of the millions of Indians without adequate access to medical services.

Cure for an Ailing Industry? Pharma Multinationals Seek a Panacea in Indian Acquisitions

Thu, 22 Oct 2009 15:11:49 EST

A few years ago, Indian pharmaceutical companies seemed to be on the takeover trail. But if recent headlines are any indication, the same firms are now targets for multinational suitors. According to some industry experts, an increasing number of acquisitions by multinational companies (MNCs) is almost certain once valuations improve -- whether for diversification, exposure to emerging markets or other purposes. Meanwhile, questions concerning the impact of the growing presence of MNCs in the Indian health care market -- particularly on drug affordability -- loom large.

Finding Market Opportunities in 'the Best Place to Get Sick'

Thu, 23 Apr 2009 20:59:43 EST

India's health care industry ails from severe under-penetration among its population, especially in rural areas. But according to panelists who spoke at the recent Wharton India Economic Forum in Philadelphia, there are many positives in the current health care environment that merit the attention of pharmaceutical firms, hospital chains and investment funds. These include the country's low-cost base for crafting new drugs, its strengths in alternative medicine, and new technology that is helping to grow the market.

Apollo Hospitals' Shobana Kamineni: 'India Is a Nascent Country in Terms of Health Care'

Thu, 26 Mar 2009 16:41:36 EST

By continually adopting cutting-edge technology and entering new sectors such as health insurance and pharmaceutical retailing, Apollo Hospitals, Asia's largest health care provider, has helped to shape India's medical landscape. At the recent Wharton India Economic Forum in Philadelphia, India Knowledge@Wharton spoke with Shobana Kamineni, the company's executive director of new initiatives, about Apollo's recent ventures and what the future holds for health care in India.

Eli Lilly's Rajiv Gulati on Pharma's Prospects in India and China

Thu, 16 Oct 2008 16:48:14 EST

India's huge potential pharmaceutical market and wealth of industry talent means it will be strategically critical for multinationals in the years ahead, notes Rajiv Gulati, director of India-China strategy and corporate strategic planning for Eli Lilly. But weak intellectual property protection continues to hold the country back by hampering innovation, he says. In China, there may be even greater potential, but huge regulatory barriers block a clear path. Gulati spoke with India Knowledge@Wharton about these and other industry issues during the 2008 Wharton India Economic Forum.

Apollo Hospitals' Suneeta Reddy: 'Medical Tourism Is a Huge Market'

Thu, 26 Jun 2008 14:22:56 EST

Medical tourism -- the phenomenon in which hospitals in emerging markets offer "sun, sand and surgery" at low prices to patients from North America and Europe -- is gaining in popularity. While India lags behind countries like Thailand as a result of airport infrastructure and other bottlenecks, health care providers such as Apollo Hospitals are expanding at 10% a year. In an interview with India Knowledge@Wharton at the recent Wharton India Economic Forum in Philadelphia, Suneeta Reddy, Apollo's executive director of finance, discussed the company's opportunities and challenges in this fast-growing market.

Novartis's Ranjit Shahani: Patenting Innovation 'Is the Best Protection for Patients'

Thu, 15 May 2008 15:14:44 EST

Concern is growing that patents hinder access to life-saving drugs in developing countries. While India clearly has made progress in advancing intellectual property rights, more needs to be done to align the country's approach with international obligations and standards. In an interview with India Knowledge@Wharton, Ranjit Shahani, country president of the Novartis Group in India, spoke about the importance of safeguarding intellectual property and its impact on affordability and access to medicine.

Medical Industry Diagnosis: Triage for Health Care and New Vision for Life Sciences

Thu, 17 Apr 2008 16:41:31 EST

India's medical industry is growing at a healthy rate, but infrastructure problems and a lack of trained professionals threaten to stymie the development of a world-class health care system. Meanwhile, cost and competitive pressures on Big Pharma and India's strengths as a low-cost location present huge opportunities for life sciences companies provided they can move away from their current service mentality and embrace risk to become innovators. These are among the conclusions of two recent conference panels, one at Wharton and the other at Harvard University, which explored the state of India's health care system.

How Doctors and Patients Get Better

Thu, 19 Apr 2007 15:53:09 EST

In Better: A Surgeon's Notes on Performance, Atul Gawande, a surgeon who also is a staff writer for The New Yorker magazine, examines both the utilitarian and the human sides of medical practice. In the book, he examines what goes right in American medical care, what goes wrong, how things either succeed or fail, and what might be done to improve the system. Among the examples he provides: A polio "mop up" in Karnataka, where Indian health care workers deployed 37,000 vaccinators to immunize 4 million children – in three days.

Podcast: Biocon's Kiran Mazumdar Shaw: 'More Indian Biotech Firms Will Be Able to Fund Discovery-led Programs'

Thu, 11 Jan 2007 17:14:34 EST

When Kiran Mazumdar Shaw launched Biocon, India's first biotech firm, in 1978, it started out as a joint venture with an Irish biotech company. After initially focusing on industrial enzymes, Biocon has evolved during the past eight years into an integrated bio-pharmaceutical firm that focuses on diabetes and oncology. "We are developing oral insulin and antibodies for specific cancers," she says. Mazumdar Shaw notes that in the past, a risk-averse capital market made it difficult for Indian biotech firms to raise funds, forcing them to provide research services much like the software services industry. Now, however, a few Indian biotech firms have developed a hybrid model in which services generate funds that are used to support discovery-led programs. Mazumdar Shaw discussed these issues and more with India Knowledge@Wharton at the recent Wharton India Economic Forum in Philadelphia.

Novartis's Alex Gorsky: Ensuring that Patients Get Access to the Medicines They Need

Wed, 27 Sep 2006 18:51:22 EST

Alex Gorsky was named head of Pharma North America and CEO of Novartis Pharmaceuticals Corp., the U.S. affiliate of Swiss drug giant Novartis, in the fall of 2005. Since joining the company in 2004 as chief operating officer and head of general medicines, Gorsky has overseen the continued growth of Novartis's industry-leading cardiovascular franchise, notably the blockbuster drugs Diovan and Lotrel. The company sells a variety of products, including those that treat endocrine and respiratory disease, gastrointestinal illnesses, cancer and blood disorders and bone and joint conditions, among others. Prior to joining Novartis, Gorsky was company group chairman for Johnson & Johnson's pharmaceutical business in Europe, the Middle East and Africa. Before that, he spent 15 years in sales, marketing and management at Janssen Pharmaceutica. Gorsky was recently on campus to take part in a Wharton business roundtable on leadership and agreed to talk with Knowledge@Wharton about trends in the pharmaceutical industry.

Industry Leaders Debate Big Pharma R&D (Too Little Hope?) and Stem Cell Research (Too Much hype?)

Wed, 22 Mar 2006 15:54:43 EST

Different points on the research spectrum were under the microscope at the Wharton Health Care Business Conference last month as two panels of biotech, pharmaceutical and investment leaders discussed the state of R&D among big pharmaceuticals and the progress of stem cell research. While disappointing results in both sectors have dominated the news lately, panelists at each session also noted some promising developments -- and causes for optimism -- in their respective fields.