# Healthcare services Stratum 6 · Integrated services Source page: https://www.materialinsights.org/industries/healthcare/ Stratum 6 · Integrated services ## Healthcare services Healthcare services diagnose, treat and care for people through hospitals, clinics, laboratories and pharmacies, paid for by households, insurers and governments. World health spending reached about US$ 10.6 trillion in 2023, around 10% of global GDP (WHO). Out-of-pocket payments still make up more than 40% of health spending in low-income countries.^[1](https://p4h.world/app/uploads/2025/12/2025-GHED-Launch-Webinar-Presentaton.x73677.pdf) **India.** India spent 3.37% of GDP on health in 2022-23, of which government spending was only 1.48% of GDP, and households paid 43.4% of the bill out of pocket, up from 39.4% in 2021-22 (National Health Accounts 2022-23)^[3](https://nhsrcindia.org/sites/default/files/2026-05/NHA%202022-23%20Report.pdf). The public insurance scheme AB-PMJAY had funded 13.25 crore hospital admissions worth ₹2.03 lakh crore across more than 38,000 empanelled hospitals by September 2026, a large and growing pool of paid demand for private hospitals and diagnostics. Depends on 23 of 35 industries · 9 directly Relied on by 1 industries, directly or indirectly Enterprise types 13 in 6 stages Chokepoints 1 rated 5 of 5 Size about US$ 10.6 trillion of health spending (about 10% of world GDP) 2023 ## [Where ₹100 of healthcare services output goes](https://www.materialinsights.org/industries/healthcare/cost-mix/) Where ₹100 of healthcare services output goes Every rupee of sales is paid out to someone along the chain. This splits ₹100 of output by who finally receives it, so you can see how exposed the industry is to commodity, chemical and energy prices. Commodities ₹2.9 Chemicals ₹0.6 Energy ₹4.3 Wages… ## [Price links with supplier industries](https://www.materialinsights.org/industries/healthcare/price-links/) Price links with supplier industries How the industries this one buys from shape its prices: the share of its costs they make up, and how their prices have moved together. Tap a row for the charts. Hover or tap ? for what each measure means. Supplier industry Cost share Raw-material mix… ## [Follow one offering through the chain](https://www.materialinsights.org/industries/healthcare/story/) Follow one offering through the chain 6 Example story · 6 steps · India A cataract operation at Aravind, Madurai Follow one cataract patient from a lens factory in Madurai to a village camp, a busy theatre and restored sight. 1 / 6 · Medical supplies and equipment A lens made down the road US$ 3… ## [Buys directly from](https://www.materialinsights.org/industries/healthcare/linked-industries/) Buys directly from Pharmaceuticals Medical devices Real estate Software and IT services Finance: banking, insurance, markets Education and research Waste and recycling Food and beverage processing Textiles and leather Depends on through its suppliers Building materials Computers and electronics… ## [Value chain, from upstream to the customer](https://www.materialinsights.org/industries/healthcare/value-chain/) Value chain, from upstream to the customer Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Medical supplies and equipment Pharmaceutical and consumables distributors 3 · Important Buy medicines, vaccines and disposables from… ## [What the whole chain draws on](https://www.materialinsights.org/industries/healthcare/materials/) What the whole chain draws on Every commodity, chemical and energy tile named by the enterprises above; ×n shows how many of them depend on it. Open any tile for its full detail. Commodities (11) He Helium ×2 Cu Copper ×2 St Steel ×2 H₂O Water ×2 Nb Niobium REE Rare earths Cem Cement Ri Rice Wh… ## [Chokepoints and risks](https://www.materialinsights.org/industries/healthcare/risks/) Chokepoints and risks Out-of-pocket payments exceed 40% of health spending in low-income countries and about 2 billion people face financial hardship from health costs 2 . India's government health spending fell to 1.48% of GDP in 2022-23, and the household out-of-pocket share rose back to 43.4%… ## [Sources](https://www.materialinsights.org/industries/healthcare/sources/) Sources Global Health Expenditure Database 2025 launch presentation (2023 data) World Health Organization (hosted by P4H), 2025 WHO Director-General's opening remarks at the launch of the Global Health Expenditure Report 2024 World Health Organization, 2024 National Health Accounts Estimates for… ## Relationship cards - [Medical devices](https://www.materialinsights.org/links/healthcare-services-and-medical-devices/): Hospitals and diagnostic centres are the buyers of medical devices, and about 70% of India's device market is met by imports (2024 assessment); price caps on stents and state support for device parks are the two policy levers on this link. *(researched)* - [Pharmaceuticals](https://www.materialinsights.org/links/healthcare-services-and-pharmaceuticals/): Medicines took about a fifth of India's current health expenditure in 2022-23, and households still paid 43.4% of total health spending out of pocket; price ceilings and cheap generics are how the state tries to cut the medicine bill. *(researched)* - [Public administration, defence and security](https://www.materialinsights.org/links/healthcare-services-and-public-administration-defence-and-security/): Healthcare services buys from Public administration, defence and security; public administration, defence and security buys from Healthcare services; healthcare services depends on public administration, defence and security; public administration, defence and security depends on healthcare services. - [Construction and infrastructure](https://www.materialinsights.org/links/construction-and-infrastructure-and-healthcare-services/): Healthcare services buys from Construction and infrastructure; healthcare services depends on construction and infrastructure. - [Data centres and cloud](https://www.materialinsights.org/links/data-centres-and-cloud-and-healthcare-services/): Healthcare services buys from Data centres and cloud; healthcare services depends on data centres and cloud. - [Education and research](https://www.materialinsights.org/links/education-and-research-and-healthcare-services/): Healthcare services buys from Education and research; healthcare services depends on education and research. - [Finance: banking, insurance, markets](https://www.materialinsights.org/links/finance-banking-insurance-markets-and-healthcare-services/): Healthcare services buys from Finance: banking, insurance, markets; healthcare services depends on finance: banking, insurance, markets. - [Food and beverage processing](https://www.materialinsights.org/links/food-and-beverage-processing-and-healthcare-services/): Healthcare services buys from Food and beverage processing; healthcare services depends on food and beverage processing. - [Household and personal care](https://www.materialinsights.org/links/healthcare-services-and-household-and-personal-care/): Healthcare services buys from Household and personal care; healthcare services depends on household and personal care. - [Paper and packaging](https://www.materialinsights.org/links/healthcare-services-and-paper-and-packaging/): Healthcare services buys from Paper and packaging; healthcare services depends on paper and packaging. - [Real estate](https://www.materialinsights.org/links/healthcare-services-and-real-estate/): Healthcare services buys from Real estate; healthcare services depends on real estate. - [Semiconductors](https://www.materialinsights.org/links/healthcare-services-and-semiconductors/): Healthcare services buys from Semiconductors; healthcare services depends on semiconductors. - [Software and IT services](https://www.materialinsights.org/links/healthcare-services-and-software-and-it-services/): Healthcare services buys from Software and IT services; healthcare services depends on software and IT services. - [Textiles and leather](https://www.materialinsights.org/links/healthcare-services-and-textiles-and-leather/): Healthcare services buys from Textiles and leather; healthcare services depends on textiles and leather. - [Transport and logistics](https://www.materialinsights.org/links/healthcare-services-and-transport-and-logistics/): Healthcare services buys from Transport and logistics; healthcare services depends on transport and logistics. - [Waste and recycling](https://www.materialinsights.org/links/healthcare-services-and-waste-and-recycling/): Healthcare services buys from Waste and recycling; healthcare services depends on waste and recycling. - [Water and sanitation](https://www.materialinsights.org/links/healthcare-services-and-water-and-sanitation/): Healthcare services buys from Water and sanitation; healthcare services depends on water and sanitation. - [Wholesale and retail trade](https://www.materialinsights.org/links/healthcare-services-and-wholesale-and-retail-trade/): Healthcare services buys from Wholesale and retail trade; healthcare services depends on wholesale and retail trade. - [Boilers, furnaces and stoves](https://www.materialinsights.org/links/boilers-furnaces-and-stoves-and-healthcare-services/): Healthcare services depends on boilers, furnaces and stoves. - [CNG, LPG and biogas distribution](https://www.materialinsights.org/links/cng-lpg-and-biogas-distribution-and-healthcare-services/): Healthcare services depends on CNG, LPG and biogas distribution. - [Cement](https://www.materialinsights.org/links/cement-and-healthcare-services/): Healthcare services depends on cement. - [Chlorine](https://www.materialinsights.org/links/chlorine-and-healthcare-services/): Healthcare services depends on chlorine. - [Combustion road vehicles](https://www.materialinsights.org/links/combustion-road-vehicles-and-healthcare-services/): Healthcare services depends on combustion road vehicles. - [Copper](https://www.materialinsights.org/links/copper-and-healthcare-services/): Healthcare services depends on copper. - [Cotton](https://www.materialinsights.org/links/cotton-and-healthcare-services/): Healthcare services depends on cotton. - [Data centres](https://www.materialinsights.org/links/data-centres-and-healthcare-services/): Healthcare services depends on data centres. - [Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/links/distribution-grids-mini-grids-and-interconnectors-and-healthcare-services/): Healthcare services depends on distribution grids, mini-grids and interconnectors. - [Energy in buildings](https://www.materialinsights.org/links/energy-in-buildings-and-healthcare-services/): Healthcare services depends on energy in buildings. - [Heat pumps, air conditioning and refrigeration](https://www.materialinsights.org/links/healthcare-services-and-heat-pumps-air-conditioning-and-refrigeration/): Healthcare services depends on heat pumps, air conditioning and refrigeration. - [Helium](https://www.materialinsights.org/links/healthcare-services-and-helium/): Healthcare services depends on helium. - [Hydrogen peroxide](https://www.materialinsights.org/links/healthcare-services-and-hydrogen-peroxide/): Healthcare services depends on hydrogen peroxide. - [Industrial enzymes](https://www.materialinsights.org/links/healthcare-services-and-industrial-enzymes/): Healthcare services depends on industrial enzymes. - [Internal combustion engines and gensets](https://www.materialinsights.org/links/healthcare-services-and-internal-combustion-engines-and-gensets/): Healthcare services depends on internal combustion engines and gensets. - [Isopropanol](https://www.materialinsights.org/links/healthcare-services-and-isopropanol/): Healthcare services depends on isopropanol. - [Latent heat and cold storage](https://www.materialinsights.org/links/healthcare-services-and-latent-heat-and-cold-storage/): Healthcare services depends on latent heat and cold storage. - [Milk & dairy](https://www.materialinsights.org/links/healthcare-services-and-milk-and-dairy/): Healthcare services depends on milk & dairy. - [Niobium](https://www.materialinsights.org/links/healthcare-services-and-niobium/): Healthcare services depends on niobium. - [Nitrogen gas](https://www.materialinsights.org/links/healthcare-services-and-nitrogen-gas/): Healthcare services depends on nitrogen gas. - [Oxygen](https://www.materialinsights.org/links/healthcare-services-and-oxygen/): Healthcare services depends on oxygen. - [PVC](https://www.materialinsights.org/links/healthcare-services-and-pvc/): Healthcare services depends on PVC. - [Paints and coatings](https://www.materialinsights.org/links/healthcare-services-and-paints-and-coatings/): Healthcare services depends on paints and coatings. - [Pharmaceutical excipients](https://www.materialinsights.org/links/healthcare-services-and-pharmaceutical-excipients/): Healthcare services depends on pharmaceutical excipients. - [Polycarbonate](https://www.materialinsights.org/links/healthcare-services-and-polycarbonate/): Healthcare services depends on polycarbonate. - [Polypropylene](https://www.materialinsights.org/links/healthcare-services-and-polypropylene/): Healthcare services depends on polypropylene. - [Rare earths](https://www.materialinsights.org/links/healthcare-services-and-rare-earths/): Healthcare services depends on rare earths. - [Reagents and high-purity lab chemicals](https://www.materialinsights.org/links/healthcare-services-and-reagents-and-high-purity-lab-chemicals/): Healthcare services depends on reagents and high-purity lab chemicals. - [Rice](https://www.materialinsights.org/links/healthcare-services-and-rice/): Healthcare services depends on rice. - [Small-molecule APIs](https://www.materialinsights.org/links/healthcare-services-and-small-molecule-apis/): Healthcare services depends on small-molecule APIs. - [Steel](https://www.materialinsights.org/links/healthcare-services-and-steel/): Healthcare services depends on steel. - [Surfactants](https://www.materialinsights.org/links/healthcare-services-and-surfactants/): Healthcare services depends on surfactants. - [Waste-to-energy](https://www.materialinsights.org/links/healthcare-services-and-waste-to-energy/): Healthcare services depends on waste-to-energy. - [Water](https://www.materialinsights.org/links/healthcare-services-and-water/): Healthcare services depends on water. - [Wheat](https://www.materialinsights.org/links/healthcare-services-and-wheat/): Healthcare services depends on wheat. ## Other sections - [Where ₹100 goes](https://www.materialinsights.org/industries/healthcare/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/healthcare/price-links/index.md) - [Example story](https://www.materialinsights.org/industries/healthcare/story/index.md) - [Linked industries](https://www.materialinsights.org/industries/healthcare/linked-industries/index.md) - [Value chain](https://www.materialinsights.org/industries/healthcare/value-chain/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/healthcare/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/healthcare/risks/index.md) - [Sources](https://www.materialinsights.org/industries/healthcare/sources/index.md)