SEBASTIAN, Florida, July 27, 2010 /PRNewswire/ -- This month, as predicted in the February 2008 issue of the PHM Emerging Markets Healthcare Monitor, insurance companies in India announced that they would only work with hospitals that meet their pricing demands. These firms control nearly 70% of the Indian health insurance market.

Hank Kearney, president of PHM International, Inc. ( a worldwide healthcare consultancy and publisher of the PHM Emerging Markets Healthcare Monitor, further noted in the 2008 issue that India's healthcare sector would have to deal with pricing disruptions and the insurance companies would be the first to push down costs of hospital care.

In February 2009 Kearney wrote After all, India's private hospital sector is low hanging fruit for the likes of... insurance companies. And as recently as December, 2009, it was noted The next step in this product [insurance] development process will be negotiated pricing with providers.

The four insurance companies, National Insurance Co., India Assurance Co., Oriental Insurance Co., and United India Insurance Co., all claim the reduced hospital pricing will lower costs for consumers.

This is not a surprise and it will be a challenge for the Indian hospital market and its investors. Those hospitals contracted with private insurance companies still have the upper hand, but not for long. We certainly expect to see continued sector growth. Executive boards and management will now be held accountable for ever smaller margins, Kearney said.

About the PHM Emerging Markets Healthcare Monitor

The PHM Emerging Markets Healthcare Monitor is a monthly commentary on healthcare developments and transactions in emerging markets. Targeted to institutional investment, private equity, banking, legal, and industry C-suite executives, subscribers also receive a complimentary Weekly News Feed of important developments.

About PHM International

PHM International is a worldwide healthcare and insurance sector consultancy. Since 1997 it has developed a core specialisation in advisory services in emerging markets. Target clients include healthcare organisations, financial firms, pharmaceutical companies, and insurance institutions. PHM International is headquartered in Florida. PHM Macedonia, LLC is a PHM International licensee based in Skopje.

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Hank Kearney

Contact: PHM International, Inc. Margaret Baarman +1-772-388-6496

SOURCE: PHM International, Inc.

CONTACT: Margaret Baarman of PHM International, Inc., +1-772-388-6496,,