Digitalization: The Ripple that has Triggered a Tsunami in the Indian Diagnostic Industry
Healthcare industry stands on 4 pillars: we individuals commonly called patients are on the demand side whereas the supply side has 3 major players: Healthcare providers (hospitals, doctors, nurses), the fact finders (diagnostic industry), and the solution providers (pharmacy and medicine industry). Though each player is equally important for assuring correct treatment and cure, the backbone of the healthcare industry is the diagnostic wing, as an effective treatment can only be prescribed after correct diagnosis. Almost 70 percent of the treatments are based on diagnoses. But unfortunately, the diagnostic industry in India with more than 1 lakh labs is highly unorganised, plaguing the very foundation of Indian healthcare system. With technology all these threads can be connected effectively. Recently, with online players taking matters in their own hands, a major shift in the diagnostic sector has been noticed, the influence of which will only grow stronger every day. Many factors that had plagued the diagnostic industry have effectively been removed by online players.Lack of Standardisation: Lack of standardisation and regulations in this sector has been a major roadblock. Out of the 1 lakh odd diagnostic labs in India, less than 1 percent is recognised or NABL accredited. This leaves customers at the mercy of the lab owners and accuracy of test results is often sacrificed. In most cases, treatment is based on the reports provided by these labs, the reliability of which is unsure. Technology has a major role to play, especially with the entry online players, a paradigm shift to regulation of diagnostic labs and the regular auditory and quality control by the third party online players, has increased the accountability of even the smallest of labs.
Monopolized Market: With only few recognised players, this industry is more or else monopolised. Few big players have gained trust and acceptance of the masses, giving them the power to manipulate not just regulations but prices as well. Also, the fragmented nature of the Indian diagnostic sector is a suitable feeding ground for these players to grow bigger and stronger, giving them massive power to manipulate the industry. Digitalization of the industry has on the other hand, shifted the power to smaller players as well, where they can now reach out to masses through affordable means, enabling them to offer quality services like
free home sample pick up, digitalized records, same day report delivery to their customers.
Profit Hunger: The darkest side of monopoly and lack of regulations is that few players manipulate the market, giving them immense power to play with pricing. Recent study by a leading publication house revealed that diagnostic labs charge almost four times extra from their customers. A comparison of the rate list of leading diagnostic chains, reviewed by this publication house, shows charges offered to individual patients for particular tests are costlier by 100-350 percent than those offered to institutions. Online players have shattered this ideology altogether. Offering test at honest prices and not at overly inflated rates, giving reasonable discounts and offers have made diagnosis and healthcare services fairly affordable now. Also, this has encouraged people to not delay their and their family medical test due to cost burdens.
Ease to do Business: Unlike any other industry, where ease of doing business is considered a plus point, in the diagnostic segment this has done more harm than good. Due to the ease and practically a zero point entrance barrier, anybody and everybody with basic Science knowledge can start a pathology lab in India. Though as per government guidelines, an MD has to certify all reports, this is often ignored by many players. The influx of online players has regulated this process as well. The success of an online player is largely based on its online reputation which rests on very fragile grounds and is easily tilted by reviews, ratings and customer feedback. To win the hearts of its customers, online players are the first ones to fill these roadblocks. Counter checking of each report by qualified and educated professionals hence is assured at every point.
The Third Eye - Awareness: Earlier, the major challenge was to find cure for only communicable diseases like Malaria and Tuberculosis. But with changing lifestyles many new health threats, like the lifestyle diseases have become magnanimous. Diabetes, obesity, blood pressure and cardiac problems have become a household name, impacting more every 1 out of 4 Indians. This threat is only growing in size and the only weapon to face is with awareness. Technology has helped in bringing this awareness closer to people. With smart phones and tabs and the digital India wave, all have a device in their hand, and this has given each an opportunity to self educate and be aware of looming threat.
Awareness awakens consciousness: The growing awareness about the risk of diseases, their complications, cure, required dietary and lifestyle changes have awakened health consciousness among most. This has been possible only because of the easy availability of related information on internet. The presence of online players with rich medical content has increased the reach of this information. Also preventive healthcare has got a big boost as the acceptance level of the same has risen manifold amongst Indians.
The scope of growth in the healthcare industry is immense. Healthcare industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well private players. The total industry size is expected to touch US$ 280 billion by 2020. Intelligent interplay of technology and healthcare will open huge opportunities to online industry in improving patient experience, modernising medical care, guaranteeing quality services, reducing costs and avoiding redundant tests.
With online players taking matters in their own hands, a major shift in the diagnostic sector has been noticed, the influence of which will only grow stronger every day
Profit Hunger: The darkest side of monopoly and lack of regulations is that few players manipulate the market, giving them immense power to play with pricing. Recent study by a leading publication house revealed that diagnostic labs charge almost four times extra from their customers. A comparison of the rate list of leading diagnostic chains, reviewed by this publication house, shows charges offered to individual patients for particular tests are costlier by 100-350 percent than those offered to institutions. Online players have shattered this ideology altogether. Offering test at honest prices and not at overly inflated rates, giving reasonable discounts and offers have made diagnosis and healthcare services fairly affordable now. Also, this has encouraged people to not delay their and their family medical test due to cost burdens.
Ease to do Business: Unlike any other industry, where ease of doing business is considered a plus point, in the diagnostic segment this has done more harm than good. Due to the ease and practically a zero point entrance barrier, anybody and everybody with basic Science knowledge can start a pathology lab in India. Though as per government guidelines, an MD has to certify all reports, this is often ignored by many players. The influx of online players has regulated this process as well. The success of an online player is largely based on its online reputation which rests on very fragile grounds and is easily tilted by reviews, ratings and customer feedback. To win the hearts of its customers, online players are the first ones to fill these roadblocks. Counter checking of each report by qualified and educated professionals hence is assured at every point.
The Third Eye - Awareness: Earlier, the major challenge was to find cure for only communicable diseases like Malaria and Tuberculosis. But with changing lifestyles many new health threats, like the lifestyle diseases have become magnanimous. Diabetes, obesity, blood pressure and cardiac problems have become a household name, impacting more every 1 out of 4 Indians. This threat is only growing in size and the only weapon to face is with awareness. Technology has helped in bringing this awareness closer to people. With smart phones and tabs and the digital India wave, all have a device in their hand, and this has given each an opportunity to self educate and be aware of looming threat.
Awareness awakens consciousness: The growing awareness about the risk of diseases, their complications, cure, required dietary and lifestyle changes have awakened health consciousness among most. This has been possible only because of the easy availability of related information on internet. The presence of online players with rich medical content has increased the reach of this information. Also preventive healthcare has got a big boost as the acceptance level of the same has risen manifold amongst Indians.
The scope of growth in the healthcare industry is immense. Healthcare industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well private players. The total industry size is expected to touch US$ 280 billion by 2020. Intelligent interplay of technology and healthcare will open huge opportunities to online industry in improving patient experience, modernising medical care, guaranteeing quality services, reducing costs and avoiding redundant tests.
