Go Goa, for healthcare

MEDICINE: Private hospitals are finally entering the tourist paradise.

A little late in the day perhaps, but Goa is finally gearing up to join the private healthcare wave running through the rest of India. Despite attracting a large number of tourists from the world over, the healthcare system in Goa never developed to a level where it could provide specialty care to residents or tourists.

But now, some private players are eyeing the state and even the government seems to have become proactive in this regard.

Wockhardt, for instance, has been treating patients from Goa at its hospitals in Mumbai and Bangalore for many years. Vishal Bali, CEO, Wockhardt, says, "Traditionally, for speciality treatments like neuro or cardiac care, patients from Goa went outside the state."

Wockhardt's decision to enter Goa came after the realisation that residents of the state who sought healthcare outside were familiar with the brand and would relate it with a Wockhardt institute within Goa. The company has already started work on its specialty hospital in Goa.

A huge impetus in this direction, however, comes from the state itself. The government of Goa recently signed an agreement with the India Infrastructure Initiative Trust (III), run by IDFC and Feedback Ventures, to set up through public-private partnership, a super-specialty block within the Goa Medical College.

There are many reasons for this initiative. Besides the growing demand for tertiary care in the state, the government of Goa faced another problem "" that of the depleting state mediclaim fund. In a policy that is unique only to Goa, the state government provides its residents with mediclaim.

However, increasing lifestyle-related diseases that led to the demand for tertiary care pushed a large number of patients outside Goa. This translated into huge mediclaims by the residents, but the money, instead of remaining within the state went to hospitals in other states.

Says Suresh Kumar, COO, III, "Last year we proposed a PPP to the government and they liked the idea. Now that the agreement has been signed, we will start looking for a strategic partner that will set-up the specialty block."

The proposed 250-bed tertiary care block will see an investment of Rs 100 crore from the chosen partner, with the government providing the land. Kumar is not worried about the success or profitability of such hospitals in the state.

"Currently the state is spending close to Rs 20 crore per annum on patients going outside for treatment. So, there is huge demand and opportunity here." Cardiac, pediatric, neuro and nephrology are the proposed specialties, but the private partner will be free to add more.

A huge segment of the earnings, of course, will also be contributed by overseas patients and tourists who may require treatment. No wonder then that South-based Manipal Health Systems, which had stayed away from the city till now is also preparing for a grand entry.

Says R Basil, CEO, Manipal Health Systems, "We will set up hospitals in Bangalore of course, but we are also setting up a 250-bed facility in Goa since there is huge opportunity there." Adds Bali, "The criteria is not international patients, at least at the moment, since the domestic demand is very high."