Healthcare-IT Business Strategy

Sunday, October 14, 2012

There is no Market for EMR in India

India is a very price sensitive market. The Maruti/Suzuki advertisement - 'kitna deti hai?' is an epitome of the reality. The big success of the mobile/telecom in India is because of it gave an instant gratification to the users. The Sabjiwala vendor keeps a mobile because of free incoming, such that he can be called by the customers for home delivery and he gets an instant boost to business - instant gratification.  

Likewise in the Healthcare the hospitals have a 2-5% budget for IT and give a step motherly treatment to IT. All because IT is considered as a support function and not a direct business benefit. Most of this budget is spent in areas that give tangible business benefits and/or instant gratification - e.g. HIS and in that for Billing, Material Management, Procurement, Lab and Pharmacy. The EMR is an after thought and that too almost never for clinical reasons; rather EMR is used as a point-of-use application for material management. 

The current Healthcare Financing model is to blame for this. Every cost gets passed on to the patient. >80% is pay-out-of-pocket. Therefore the hospital must ask the question at every stage - After all how much can the hospital load the patient's bill? Almost 2% of the Indian population falls below the poverty line every year because of medical expenses; for which they have to sell their land and assets.

Bottomline - Indian Healthcare-IT market is very small and almost negligible for EMR, until new models of Healthcare financing emerge - e.g. Govt's Universal Healthcare, 49% FDI in Health Insurance, Micro Finance etc.    

7 Comments:

  • not sure whats the goal of your article. are you suggesting anything new, criticizing?

    By Anonymous Anonymous, At October 21, 2012 at 9:32 PM  

  • India is a land and cash economy. Total lack of respect for intangibles like Standards, Processes and Knowledge. They will buy only things that give direct cash benefits. I am just sharing my views and maybe a outpouring a little of my frustration.

    By Blogger Dr Pankaj Gupta, At October 24, 2012 at 8:19 AM  

  • Is there a route to EMR via Personal Medical Record(PMR)? Those who care for their medical history can maintain it themselves. Slowly when the adoption picks up and benefits realized, it peculates to the grassroots.

    -Balaji S.

    By Anonymous Anonymous, At October 26, 2012 at 5:40 PM  

  • Intangible business benefits should also be considered fairly for any types of businesses.

    By Anonymous Business Insurance Plan, At September 2, 2013 at 6:54 AM  

  • After the MOHFW coming up with directives and standards including ISO for EMR - we have a direction!

    By Anonymous Dr Patole, At November 17, 2013 at 4:42 PM  

  • Dr Gupta
    This is Durga Prasad from Mumbai i have an online EHR free of cost for any individual. I request u to ask all your patient to create an account and use it smoothly Free of Cost.

    my url is www.mylifecare.co.in

    My Mission is to provide free EHR service to all Free Of Cost.

    mylifecare BAHOUT KHAYAL RAKHTI HAI....



    By Blogger DP Rai, At February 4, 2014 at 4:59 PM  

  • I wish more authors of this type of content would take the time you did to research and write so well. I am very impressed with your vision and insight. india visa for canadian citizens

    By Blogger Edward Brown, At February 25, 2020 at 5:56 PM  

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