The Indian healthcare market was estimated at US$ 35 billion in 2007, and has been witnessing double
digit growth rates in recent years. However, this growth is largely fuelled by demand from major cities. India’s healthcare system is paradoxical - on the one hand, it boasts of ‘best in class’ healthcare delivery attracting medical tourists from across the world, and on the other, it is characterised by a near absence of accessible, affordable quality health services for a large part of its population. Existing infrastructure, especially in smaller towns/ rural areas, is inadequate to meet the evergrowing needs of the Indian population. Less than 10% of the population is covered under health insurance, and India has less than 1/3rd doctors per capita compared to China, and almost one hundredth compared to that of USA.
Adding infrastructure and medical professionals alone will not be able to solve India’s huge unmet needs in healthcare. It needs to be supported by technology. An effective and innovative use of medical technology, supported by ICT, has the potential of increasing access, significantly reducing the burden of disease and the load on healthcare delivery services through early diagnosis, better clinical outcomes, less invasive procedures and shorter recovery times.
Currently, the market for medical technology in India is small, but rapidly expanding. It is nascent and highly fragmented with limited indigenous manufacturing - imports constitute over 75% of the estimated US$2.75 billion market.
A transforming medical technology landscape, improving healthcare delivery and financing mechanisms, and changing patient profile are driving growth in the medical technology industry. However, the industry has been stifled by some key impediments to growth.
The foremost among these is the lack of - affordability, accessibility, awareness and availability. A key question, therefore, is how to increase penetration of medical technology to improve health outcomes in India?
The answer lies in innovation. Medical technology innovation can be the tool to make modern care accessible, available and affordable to all by lowering the cost of the product or delivery. Innovation need not only be restricted to products. Business model innovation across the value chain (manufacturing, distribution, marketing etc.) and frugality can often generate significant benefits to all stakeholders, including patients/end users.
For innovation to make an impact, collaboration between the stakeholders in the medical technology ecosystem is a key success factor. The industry must move from ‘company-centric’ innovation, towards ‘co-creation’. All stakeholders – government, industry, academia, healthcare and insurance providers - need to co-ordinate/ strategise and move in step for their actions to resonate and bring about lasting change. Apart from this, there is also what can perhaps be the biggest opportunity for improvement - an ambiguous regulatory framework with no distinct legal status for the medical technology industry, which has been acknowledged as a key constraint for the industry.
CII’s 3rd Medical Technology Conference is an ideal forum to discuss the way forward in addressing these challenges, and Deloitte is privileged to collaborate as the knowledge partner for the conference. Read the report.
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