India’s healthcare industry today is at an inflection point and is witnessing major digital transformation. The whole industry is growing at a CAGR of 22% and is projected to reach $372 billion by 2022 on the back of growing and ageing population, economic development, increasing health awareness and Covid induced consumer and behavioral changes. The embedment of AI & related digital solutions is expected to rapidly empower the patient care continuum, both inside and outside of the hospital. Health Enterprises are also investing in innovative services and creating low cost digital & device solutions that believe in the outcome of creating affordability to the masses, and not just specific pockets of the population. For example, Microsoft has tied up with organizations like Narayana Health, Forus Health, Apollo Hospitals, SRL Diagnostics to cover a broad range of use cases from diabetic retinopathy to histopathology – all of the diseases, which will now leverage analytics at scale, in-order to improve patient outcomes.
Despite such advancements, India’s healthcare system continues to combat a plethora of challenges such as the lack of scalable infrastructure, shortage of efficient and trained manpower. The outbreak of pandemic has questioned the foundation of India’s healthcare system. There is a gap of 0.35 doctors, 0.8 nurses and 2.1 hospital beds per 1000 population as recommended by WHO. India has the lowest spend as a proportion of GDP on healthcare (In 2020-21, India spent 1.8% of its GDP on healthcare), while US spends over 16%, Japan, Canada, Germany etc. spend over 10% of their GDP on healthcare. There is also a huge disparity, in terms of infrastructure and quality of care, across states and rural-urban settings. About 75% of India’s population living outside urban cities has access to only 31.5% hospitals and 16% hospital beds.
These glaring gaps are expected to be addressed and aided by digital health solutions, and the use of technologies that improve accessibility. As per Edge Insights, the healthcare sector has attracted more than $10 billion investments from private equity investors and IT spend of the sector is expected to be $790 mn in 2021, an increase of 73% from last year.
To discuss the experiences of various stakeholders and learn the lessons to face challenges of the future, VCCircle is organising the 13th edition of the Healthcare Investment Summit on Novemebr 17, 2021 on a virtual platform.