Globalization impact and NHS

Globalization impact and NHS

Introduction

Globalization is a relatively new concept in India. India did not embrace globalization till 1991 until the government accepted the much needed economic reforms of liberalization, privatization and globalization. 1

Why these reforms were termed as 'much-needed' us because India was on the brink of economic crisis. India was almost shut-off to the world before the reforms. With the robust growth of the Indian economy as we see today, we are convinced how important these reforms were at that point of time. The healthcare system in India was in a dismal state before the reforms. First of all, there were very little facilities for healthcare and was limited to urban areas. Most healthcare facilities were run by the government and the conditions these facilities were in were pathetic. The biggest hindrance to the healthcare infrastructure was the presence of bureaucracy. Healthcare facilities were very few and were poor in quality. They were pathetic in terms of infrastructure, health facilities were poorly kept, no hygiene was maintained and it was inefficient, crude and primitive. Equipment were old and were incapable of providing quality healthcare. There were very few doctors. Most hospitals were completely understaffed. There were very few specialists. The worst part was the bureaucracy. The bureaucracy had an assurance of job security. They knew that they wouldn't lose their jobs however badly they worked. This feeling made them more inefficient. They would work at their own pace and make things complicated. 1

Explanation

The Indian Health sector consists of

Medical care providers like physicians, specialist clinics, nursing homes, hospitals.

Diagnostic service centers and pathology laboratories.

Medical equipment manufacturers.

Contract research organizations (CRO's), pharmaceutical manufacturers

Third party support service providers (catering, laundry).

The advantage of of globalization on Indian healthcare:

With the $940-billion healthcare package standing on the pillars of increased healthcare coverage and lower cost, there is a supply opportunity for India's generic drug-makers. An additional 32 million Americans will get healthcare coverage from the United States Healthcare Bill that got a thumbs-up on Sunday, when it was passed by the House of Representatives. And with the $940-billion healthcare package standing on the pillars of increased healthcare coverage and lower cost, there is a supply opportunity for India's generic drug-makers, feel pharma industry representatives, still guarded on the finer details of the Bill, that are yet to emerge. Indian companies will benefit, said Mr Sanjiv Kaul, Managing Director of investment firm ChrysCapital, adding that local drug-firms need to keep their eyes on manufacturing capacities and quality. The export of generic medicines could increase several-fold, he said. At present, he added, about one-third of the total abbreviated new drug applications to sell in the US are from Indian companies. 2

But multinational drug-majors too are making a beeline for the the generic drugs market, where chemically similar medicines are made at a lower cost. This is in preparation of the changed healthcare paradigm that would focus on less expensive generics, Mr Kaul said. As a result, the India advantage could be blunted, ...