Factors transforming digital healthcare and insurtech ecosystem in India
Digital transformation is the most recent trend in the healthcare space as people have started leveraging digital assets to ensure better care management and care delivery. Digitization in healthcare is the process of introducing digital technologies in all aspects of healthcare business – payer operations, provider operations, member interactions, etc. It improves business agility and leads to cultural change, improving operational excellence and patient experience, and reduces costs.
Aim of digitization
Driven by the urgent need for value-based care, the Indian healthcare system has seen a phenomenal shift towards digital transformation. Digital transformation is aimed at bringing about an enormous impact on a patient’s health and quality of life in a positive way. This digital wave of change is not just restricted to the care management and care delivery system but also to the Insurtech ecosystem. The swiftness with which this transformation can be brought about depends on the providers’ attitude and willingness to adapt and learn. Today in India only about 2 per cent of hospitals have a structured healthcare and care delivery system that is digitized. Indian doctors are by and large not prepared for a sweeping change to the way they function.
The challenges
Many hospitals don’t keep updated records of care delivery, for instance. This is one aspect where digitization can bring about change. Hospitals like the one in Manipal or Apollo are pioneers in Indian healthcare. Therefore, if leaders take ownership of this transformation it would make a huge difference.
Despite the above hindrances to digitization in the healthcare and Insurtech space, there has been a surge in mobile applications that are convenient for users. However, despite the deluge of apps very few have been truly successful. This is because the consumers or patients are very reactive, and haven’t really been able to leverage the benefits of these apps.
Understanding the patient is a must
The best way to make healthcare apps successful is by doing an in-depth analysis and survey of the customer or patient, offering services at reasonable costs, which is also sustainable. When it comes to insurance companies there are basically two ways to get customers— one is through agents (based on a commission), and the second is when the customer directly approaches the insurance company through a website or mobile application. Therefore, the more channels open up for customers by insurance companies, the higher will be the coverage and income. That is why digitization is a must in the Indian healthcare system because then more patients will have insurance.
Increase market reach
In the Insurtech ecosystem, business is based on how much market access a company has. To increase market share it is important to be thorough with a comprehensive understanding of the customer/patient. To further grow their reach companies should focus on digitization and increase value-added services where more information is being collected on the market.
For Insurtech, the premium paid by the customer is never uniform — it depends on age with the aged being at higher risk. It is also a necessity for the elderly to have insurance, and the many rules of Insurance firms may deter the youth from opting for policies, making insurance unpopular.
Hindrances for insurance companies
At the time of underwriting an insurance policy, most people do not come clean on existing health conditions, fearing that the premium will be higher.
If a patient has two or more existing health conditions, he/she is deemed a ‘complex’ patient. Such cases automatically fall under the purview of the disease management programme. Therefore, it is imperative that Insurtech firms are able to identify such ‘complex’ patients. They would also definitely recover more on payouts with a more robust review management team that looks into claims and payouts.
Most healthcare and Insurtech companies in India would do better with more structure, which can be further enhanced by digitization as they offer care management and care delivery services. This will also help mitigate issues related to fraud, waste, and abuse of the Indian healthcare system, and insurance policies. Litigation when it comes to fraudulent claims burns a hole through the pocket and can be avoided if the system is tech-enabled.
There is a need for concrete action that solves problems at various levels of the Indian healthcare and insurance system. A support system that is digitized will not only reduce errors but will also improve decision-making at all levels. A national health policy that gives guidelines on digitization is the absolute need of the hour. India’s dream of complete digitization should not increase patient costs; a system that understands this will help realize the country’s dream of becoming a power to be reckoned with.
Source / Credits / Reference: Times of India
Ref URL: https://timesofindia.indiatimes.com/blogs/voices/factors-transforming-digital-healthcare-and-insurtech-ecosystem-in-india/
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Blog Views : 322 20-09-2022
