Eos Experience in the Healthcare Sector
At Eos we recognize the important role the healthcare sector plays in the Nepal’s overall development.
We have worked on several healthcare projects, mainly in the tertiary healthcare sector, where our clients have included some of the largest public and private hospitals in country. From conducting organizational diagnosis to operations restructuring, we work with arguably the best medical management professionals to provide a wide range of services.
Through our partnership with AAA+ HealthCare Consultancy Services and sehatINDIA Healthcare Services we are able to offer unrivaled insights into every aspect of any healthcare project. From advisory on medical software / equipment procurement to full-fledged hospital renovation and construction projects. We strive to be your counsel through every step of your business decision.
Healthcare Sector Overview
The development of Nepal’s Healthcare sector has been a priority for successive Nepalese governments and after years of neglect, it has finally seen a major turnaround. Spurred on by large scale private sector initiatives coupled with a strong demand for quality healthcare services, the healthcare sector has become one of Nepal’s fastest growing business areas.
However, despite this unprecedented growth there still remains a significant gap between the demand and available supply of quality healthcare services. According to Nepal’s Ministry of Health there are currently more than 360 private hospitals and 550 private primary clinics, but according to the WHO, there are still only 0.9 Hospital Beds per 1,000 people. Yet in in spite of infrastructure limitations, Nepal is one of the few places in the world where approx. 55% of healthcare expenditure comes from direct out of pocket expenses, compared to the world average of just 18%.
Facts
Between 2009 and 2014 Nepal’s healthcare saw US$ 18.34 Million in FDI, at a CAGR of 45%
There are approximately 3,000 SMEs in this sector
An estimated 90.4% of private healthcare expenditure is known to stem from direct out-of-pocket spending, which in 2011 amounted to US$ 570 million
Nepal imported US$ 95.4 million worth of healthcare-related commodities in 2013
Nepal on average spends approx. 5% of the total GDP on health-related public and private expenditures
According to data from the Association of Pharmaceutical Producers of Nepal, it is estimated that domestic drug manufacturers have only captured 40 to 45% of the local market
Tertiary Healthcare Companies are reported to be growing at a rate of 10 to 15%
Pharmaceutical Manufacturing companies are reported to be growing at a rate of 10 to 15%
Opportunities
100% FDI allowed in the Healthcare Sector
Tertiary healthcare opportunity estimated at US$ 55 – 65 million