India, with an average 0.7 hospital beds per 1000 of its population, needs seven lakhs additional beds over the next five years, translating to an investment opportunity of 1625 crore.
Hospital beds are expected to be packed with facilities that supplement the patient's relief during the operation as well as recovery period. The pervasive comforting of patients in hospitals emphasizes the significance of growing hospital beds market in the world. Preference to highly-equipped and facilitated hospital beds is a crucial driver for growth of market. Additionally, beds designed in accordance with a specific group of patients being treated is also fuelling the expansion of the market in the world.
Healthcare facilitation at home for vegetative patients induces the consumption of hospital beds among common consumers. Electronic devices and other medical devices attached to the beds are also influencing the purchasing trends of hospitals around the world. Nonetheless, the costs at which such beds need to produced and sold are hampering the growth of the hospital beds market, rendering marginal profits for the key participants of the market. Implications caused due to improper mobility, bed sores, and mechanical abrasion of hospital beds is also demoting its acceptance over relatively friendly or homecare beds.
Indian Market Dynamics
In 2016, the Indian hospital beds market is estimated at 650 crore with sales at 100,000 units. The market may be segmented as high-end motorized beds, which are long-term care beds with 2–4 motors and priced at above 100,000; mid-end beds, which are semielectric and for critical care, at an average unit price range of 50,000–75,000; and low-end ones which require manual labor through the use of a crank system to adjust the bed's posturing and height and are for acute care. The low-end segment with 50,000 units constitutes 50 percent of the total market, in volume terms.
An estimated, 30,000 beds of the mid-end segment were sold, valued at 225 crore. The market is dominated by Midmark, ArjoHuntleigh, Paramount, and Godrej. Some other brands present are VISCO, Mediline, Meditek, Bharat Surgicals, and Geeta Surgicals.
The market for the high-end segment in 2016 is estimated at 20,000 beds. This market is dominated by Midmark. Other brands with aggressive presence are ArjoHuntleigh, Stryker, Paramount, and Hill Rom.
The quality of healthcare in a country can be gauged from the adequacy of healthcare infrastructure and personnel in that country which, in turn, can be assessed from the bed density (bed count per 10,000 of population) and the availability of physicians and nurses. For India, that is where the concern begins. For a country accounting for the second highest world population, India's overall bed density stands at 9 in 2016, as per the Organization of Pharmaceutical Producers of India (OPPI). There is a yawning gap with regard to the global median of 30 beds; the situation indicates a shortfall of nearly 1.8 million beds vis--vis the current global median for which the country needs to nearly quadruple its bed capacity. The problem remains the last-mile reach, particularly for the rural population.
The Government of India has implemented Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) with the primary objective of correcting the imbalances in availability of affordable/reliable tertiary level healthcare in the country in general. Several new medical facilities are bring added; for example, six AIIMS were set up and existing GMCIs are being upgraded under the scheme. Two more branches of AIIMS in Gujarat and Jharkhand have been recently announced. A total of 492 maternal and child health (MCH) wings with bed capacity of more than 30,000 have been approved under the National Health Mission (NHM). Recently, the government has approved a proposal for creation of a super specialty block in Institute of Medical Sciences, BHU at a cost of 200 crore under PMSSY.
In addition, NHM has allocated a 26,690 crore budget to revitalize rural and urban health sectors. Moreover, the Ministry of Health and Family Welfare has identified 58 districts in 20 states/UT under a centrally sponsored scheme for establishment of new medical colleges attached with existing district/referral hospitals. The total cost of establishment of one medical college under the scheme is 189 crore. As on July 2017, 55 new medical colleges have been approved. Funds to the tune of 4357.42 crore have been released to the state governments/UT administrations. A part of these funds will be allocated for hospital beds.
Some of the major planned investments in hospitals for enhancing capacity, of which hospital beds will also be a part are:
- lTelangana state government is planning to acquire land for construction of four 750-bed super-specialty hospitals in Greater Hyderabad at a total cost of 2400 crore;
- lThe Odisha government will construct one specialty hospital and five secondary-care hospitals with a total of 800 beds through the public–private partnership model that will invest 424 crore in the project;
- lThe Government of West Bengal plans to set up budget hospitals across the state, which would be equipped with facilities like private cabins with ACs and TVs, single, double, and four-bedded cabins, and ICUs;
- lHealthcare enjoys a central position in the bilateral relationship between India and the United Kingdom and has been identified as one of the priority areas for the two countries to work more closely together. The 11 Indo UK Institutes of Health are designated for the provision of integrated healthcare facilities to all Indians. These institutes across India will build a capacity of 11,000 beds, 5000 doctors, 25,000 nurses, and generate direct and indirect employment for over 300,000 Indians;
- lState Health Minister Deepak Sawant has announced 250 new beds for Special Newborn Care Units (SNCU) at 12 government hospitals in districts across the state including Nashik, Amravati, and Chandrapur;
- lJSW Foundation, the social development arm of JSW Group, announced its plan to establish a 123-bed multispecialty Jindal Sanjeevani Hospital at Dolvi in Maharastra. The hospital is being established at an investment of over
- lThe Maharashtra government is working on a policy to promote the setting up of cooperative hospitals in all districts of the state to reduce the burden on public-run institutions;
- lA National Cancer Institute is planned in Jhajjar, Haryana, and Kolkata. Also, state cancer institutes (SCI) and tertiary care cancer centers (TCCC) are being set up in different parts of the country under the Tertiary Care for Cancer scheme;
- lThe 100-bed ESI hospital at Udaipur, Rajasthan is planned to be constructed with a project cost of 77.79 crore and dedicated OT, modern path laboratories, and diagnostic facilities. Two 100-bed ESI hospitals will come up at Bikaner and Neemrana. Three existing 50-bed ESI hospitals located at Kota, Jodhpur, and Bhilwara will be upgraded to 100 beds;
- lAIIMS has signed three memorandum of understandings (MoUs) with a cumulative net worth of 7670 crore to expand infrastructure and other facilities;
- lSafdarjung Hospital, New Delhi has planned an infrastructure revamp in three phases, wherein the bed strength will be increased from 1531 to 2500;
- lApollo Hospitals has planned an addition of 1045 beds by 2019 involving an investment of over 100,500 crore. They have earmarked their first investment in Punjab, with the launch of Apollo Cradle and Apollo Clinic in Amritsar;
- lFortis Hospitals group has announced its plan to add six hospitals through the operations and management strategy by the end of 2018;
- lMax India plans to double the bed capacity to about 5000 beds;
- lWenlock Hospital has received a grant for restoration and upgradation. The hospital will build a new 176-bed three-storied super-specialty block; and a 350-bed surgical complex with Kasturba Medical College;
- lONGC Limited has signed a Memorandum of Agreement with Dr Babasaheb Ambedkar Vaidyakiya Pratishthan (BAVP) for setting up a multispecialty hospitality in Assam, costing 312.34 crore;
- lAster DM Healthcare has entered into an agreement with Rashtreeya Sikshana Samithi Trust (RSST) to launch a 200-bed Aster RV super-specialty hospital; and
- lWestminster Healthcare is expected to invest 125 crore in setting up a state-of-the-art center in Nungambakkam, Chennai that will have world-renowned doctors and some of the best technologies.
Global Market Dynamics
The global hospital beds market is estimated at USD 5710 million in 2016 and is expected to reach USD 7482 million by 2022, growing at a CAGR of 4.6 percent, predicts Research and Markets.
The pervasive use for comforting patients in hospitals emphasizes the significance of growing hospital beds market in the world. Preference to highly-equipped and facilitated hospital beds is a crucial driver for growth of the global hospital beds market. Beds designed in accordance to a specific group of patients being treated is also fuelling the expansion of hospital beds market in the world. The increasing demands for the incorporation of electronic devices and other medical devices attached to the beds are also influencing the purchasing trends of hospitals around the world.
Europe is slated to dominate the global hospitals bed market over the next five years. Increasing healthcare expenditure in Europe's medical industry has fomented consumers and healthcare organizations toward buying advanced and relatively expensive hospital beds. By 2020, Europe's hospital beds market value is expected to rise to USD 2010.2 million from USD 1643.2 million, which was recorded in 2014, exhibiting a steady CAGR of 3.4 percent.
Some of the prominent players shaping up the competitive landscape of global hospital beds market are Getinge Group, Paramount Bed Co. Ltd., Stryker, ArjoHuntleigh, Hill-Rom Holdings, Inc., Medline Industries, Inc., and Invacare Corporation, among others.
A hospital bed is not a simple bed, but a specialized type that is designed to meet all the needs the hospital environment has. Many new innovative solutions have emerged as hospital centers and physician groups strive to deliver services. New technologies are focused on making it easier for patients to receive better care. The beds are now well-equipped with features that allow patients to adjust the height, as well as the head and foot sections of the bed, for better positioning, improved blood circulation, ease of transfer, and safety in case of patients, who are at a risk of falling out of the beds.
Electric and semi-electric beds. Most popular models require electricity to run the adjustment mechanisms as well as control panels. An electric hospital bed features electric motor controls, which raise the head and foot, as well as the bed frame with a single button push. As the positions are changed fast and easily, most hospitals give preference to these models.
Smart beds. They offer an effective solution for healthcare providers to constantly monitor patients and provide better care. These beds contain sensors to monitor body temperature, heartbeat, blood, oxygen, and pressure sensors, among others, all of which are required and necessary for the doctors to monitor the health of the patient. In addition, smart beds are instrumental for healthcare providers to predict, detect, and prevent unscheduled bed exits.
Remote monitoring system. They are located in the hospital beds and transfer all patient signals to the supervisor, especially in those cases that require intense care. This critical information is sent to the central system of the hospital and enables health supervisors to instantaneously review and monitor patient's vitals. In addition, this system sends alert messages, or signals, to the supervisors in case of any sudden change in the status of the patient during that period of time.
Warning systems. Modern beds are capable of sensing the patient's position, alerting the clinicians regarding any issues, and transmitting the data to the hospital's electronic medical record (EMR). New technologies, such as anti-fall warning lights and sounds to help protect high-risk patients monitor local bed status and alert clinicians if preset parameters are compromised. Alerts can either be transmitted through the EMR or sent directly to nurses' mobile devices.
Automatic patient turning. Bedsores are the third in order after cancer and cardiovascular diseases in terms of cost, according to a study published in the International Journal of Research in Medical Sciences (2015). Recent hospital beds are capable of automatically turning patients every few hours. The beds can move in all directions, be tilted at different angles, and extended for tall patients. They can also weigh patients and perform vibration and percussion massages.
Floating bed. Various manufacturers are introducing floating beds for specialized wound care. They are geared toward patients with burns or skin grafts from a surgical procedure. Technology involves use of silica beads that heat up and get excited and create a frictionless surface to accelerate wound healing and reduce complications, which helps to improve outcomes for patients with flaps/grafts, stage 3 to 4 pressure injuries, and deep-tissue injuries. Yet another technology introduced is to use a system that redistributes pressure by simulating the effects of a body immersed in fluid. It automatically measures the characteristics of patients when they are on the support surface and then creates a personalized immersion profile.
India requires about 700,000 additional beds over the next five years, indicative of an investment opportunity of 1625 crore. This presents a huge opportunity, as hospital chains are in the process of capacity expansion, not only in urban areas but in the tier-II and tier-III cities as well. Given this demand for capital, the number of transactions in the healthcare space is expected to witness an increase in the near future.
In the coming years, hospital beds will continue to become more efficient with advanced monitoring features, latest technological advances for lighter designs, and patient's safety. The National Health Policy 2017 envisions to add 1.8 million new hospital beds to ensure availability of 2 beds per 1000 population by the end of 2025, offering immense growth opportunities for manufactures over the next few years. Exemption of healthcare in the 2017 GST regime indicates the government's vision for making healthcare affordable and available to all.