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Allina Health Care: Analyst says healthcare provider has ‘no business’ in India

Reuters  The world’s largest healthcare provider Allina is planning to move its global headquarters from Mumbai to Hyderabad as the Indian government tries to bring the nation’s healthcare system under control amid rising concerns about a rising number of chronic diseases.

Allina said on Wednesday it would invest $10 billion in the city, the country’s financial hub and second-largest city, by 2019, and create more than 500 jobs to help improve its health care delivery.

India is the world’s biggest consumer of health care goods, and has one of the world�s highest rates of acute and chronic diseases, such as diabetes, heart disease, and cancer.

The healthcare sector accounts for about a fifth of India�s gross domestic product and accounts for almost a third of its GDP, according to the World Health Organization.

India has a history of mismanagement of health-care spending, with several major health insurers and pharmaceutical companies falling into debt, and a series of government attempts to improve the sector, including a series in the last decade to increase payments and create a universal health care plan.

The government last year approved a plan to create a health care system with universal coverage and a national health plan for all, but the plan has been criticized for failing to meet expectations for universal coverage, and for failing even to cover people who have already enrolled in the plans.

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