MUMBAI, Mar 19: With the new government in place in Delhi, the General Insurance Corporation (GIC) is all set to launch the much-awaited "managed-care" venture to meet the growing demand for health insurance.GIC plans to float a joint venture along with its four subsidiaires to act as the marketing arm of the industry for managed health care.The domestic managed-care market -- which is fast catching up with the global trend of "preventive health care" -- is estimated to be worth over Rs 7,500 crore.
Under the managed-care scheme, all members of a group are taken care of from diagnosis to identification of physician and appropriate hospitals for the specific line of treatment. The cost of the treatment is met by the health-care provider directly to the hospitals and specialists.
GIC may have to go in for multiple tie-ups, including technology tie-ups with world leaders in "managed care" system, to float the new venture. The insurance major will also opt for tie-ups for information technology besideshealth-care providers like hospitals, nursing homes and specialists. The requirement for an alliance, particularly with an overseas partner, has been triggered by the need for technology and managed care-specific knowledge.
However, GIC does not preclude the possibility of opting for an Indian alliance partner for complimenting the capability required for the managed-care venture.
KPMG, appointed as a consultant for planning and implementation of GIC's new schemes in phases, has already submitted its interim report. On the basis of its recommendations, GIC will draw up the organisational structure required to undertake the new business. The exclusive outfit, a technical service body for the entire general insurance industry, will have a capital base of Rs 100 crore.
The new venture will have to take care of the fact that GIC, being a government company, has restrictions on its personnel policies. Industry analysts felt the BJP goverment should spell out its policy with regard to reforms in the insuranceindustry without much delay so that both the GIC and the new players take the plunge in personal insurance like managed health care and allied products.
``What really is coming in the way of providing the service is acute shortage of infrastructure,'' sources said. The managed health care and health insurance products will lead to further shortage of hospital beds in Mumbai city as there is always a waiting list for hi-technology medical treatment, analysts added.
``The government has to provide incentive for creation of additional hospital beds to meet the existing and projected shortage,'' they said. According to them, the health care standard overseas is of high quality. In India, the scene is very different with quality of medical treatment varying from hospital to hospital.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
